Affordable Aurora Homes for Sale

Today’s New Aurora Listings

Here’s a typical first time buyer home for sale in Aurora.

If you’ve been in Aurora over the past few years owning, renting or looking to buy a home, you’ve probably witnessed the market upswing along with rising home prices. The big question that races through many people’s minds is “How can I afford to buy an Aurora home for sale?”

Good question! I challenge you to put on your thinking cap and remember back to experiences where you thought you could NEVER afford “it”. This may have been your first car, your first bicycle as a kid, college, or your first home. I’ve been in this real estate business for many years and I too can remember when I bought my first home and my first car. Believe me, I never thought we could afford it but somehow we managed. It becomes the new norm and you adjust to make it work because you know it’s good for your future.

Let’s start with some quick Aurora, Colorado real estate statistics. In 2015 there were 5094 homes sold in Aurora, the average months of inventory was .6, the average sold price of Aurora homes for sale was $307,000 and the Aurora real estate market went up 13% over the year. Meanwhile, about 50,000 people are moving to Denver each year and we have an unprecedented low number of homes on the market for sale.

Here’s what’s interesting and why you should push yourself to consider buying now vs waiting. The top 4 reasons:

1. Net worth is higher for a homeowner
2. We are not in a bubble
3. Mortgage rates are low
4. We’re still hovering around the most affordable time period in the last 45 years

Higher Net Worth for Aurora Homeowners

Buying an affordable home in Aurora is the single best thing to increase your net worth.

Buying is generally more affordable and less expensive than renting in Aurora and other affordable Colorado cities. Sure, you have a mortgage payment, repairs, and utilities but it’s YOUR home. Plus, you get tax breaks, pay down your principle and if you’re lucky, enjoy appreciation. The Federal Reserve has found that homeowners accumulate 35x more net worth than renters over their lifetime.

Aurora Real Estate Bubble?

Lots of people say we’re in a bubble, but here are a few tidbits of info. Homes are still relatively affordable (housing affordability index) with mortgage rates vs income. The number of transactions relative to population is close to the 25-year average. Mortgage underwriting is tough and we’re not doing “liar” loans. We do not have an excess of Aurora homes for sale and there are more buyers than homes. Our unemployment is low.

Low Home Loan Mortgage Rates

What can I say, 3.75%! How do you argue that? That’s a historically low-interest rate for a 30 year fixed rate loan. The resulting monthly payment is actually less than you would pay for rent. A $60,000 annual income household can afford a $310,000 house at 3.5% and at 4.5% they can afford $275,000. See my point. Denver interest rates may never this affordable again.

Affordable Aurora Homes for Sale

Amenities like this Recreation Center make affordable Aurora homes even more attractive.

Mortgage rates peaked at 16.9% in 1981. With interest rates low and if you adjust for inflation over the years, home prices have grown 1.9% per year in the Denver Metro area since 1971 from $27,000 to $363,000. If you assume 2.8% average inflation and 1.9% real growth, 5% per year could be realistic for price gains. That means a $363K house in 2014 would be $621K in 2025! Remember net worth is higher for a homeowner?

So, how do you buy a home in Aurora, Colorado? Talk to your mortgage lender and trusted Realtor. If you’re making your first purchase you may have to think out of the box. Perhaps you can get a low down payment loan or an FHA 203K loan to fix up a property. Or, maybe you find a multi-unit property and buy it as your primary residence and rent the other unit. Think creatively and ask questions to a good Aurora Realtor or loan officer.