I was having a conversation with a young man yesterday about purchasing his first home.  He asked if now was a good time to buy.  My answer was that I have never seen a better time to be a first time homeowner, that prices are down and so are mortgage rates.

 More news came out today that confirmed my opinion.  Analysts at Capital Economics say that due to price drops in the third quarter  house prices are now 17  percent undervalued relative to disposable income per capita.  The Federal Housing Finance Agency reports that housing prices are 14 percent undervalued. Fourteen to 17 percent – this is record setting.

What this means is that a medium income household can now more easily afford the mortgage payment on a medium priced home than anytime in the last 30 years. Couple this with “dirt cheap” mortgage rates, now is the time to buy.

Back to the young man I spoke of earlier, there are some great choices on great houses in the Aurora South-Centennial area of town that I plan on showing him. He agrees, now is the time to act.  If you are considering a home purchase and you, too, have questions please feel to give me a call.  I’m excited about what our Denver Metro market has offer home buyers right now and would love to be your resource.