July 2019 Denver Metro real estate prices are UP and DOWN? How is that possible, you might ask?
Let’s start with the numbers. For July, the average price of a single-family home was $496,120, a 4% increase from last year. In addition, the number of new listings is also up 3% from this time last year. However, both the average price and number of new listings are slightly lower from just last month.
The general outlook is that although the Denver real estate market is maintaining its strength on a whole, the annual cyclical slowdown from being post-summer is responsible for the decrease from just a month ago.
The main focus I would like to help my people with for this month is how do you build wealth in real estate? Last month, I took my Quarterly Denver Real Estate Review from a man who is one of the best local real estate economists I’ve ever met. One of their statistics went over the net worth of an individual who rents versus owns. A well-known fact is real estate is one the best investments a person can make, but when you actually quantify that, the numbers are shocking.
According to the Federal Reserve, a property owner accumulates 45 TIMES more wealth than a person who rents. That means if an average renter has a $5000 net worth, a property owner has a net worth of $225,000! That’s how important it is to get into owning your property if you’re still renting.
What if you already own and want to learn more about buying additional properties? It’s easier than you might think. A lot of times, people think they are just making enough money to qualify for what they are living in and there’s no way they can buy additional properties and that’s simply not true. When you buy a house, then rent it out, the lender will use that rental income to offset your mortgage payment, allowing you to safely qualify to purchase another and even another property. Of course, every situation is unique, and I am happy to meet with anyone who is considering real estate investment.