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Denver’s Property Mortgaging Boons

The boons of Mortgaging for Denver's Real Estate

Since news of continued rising prices in the Denver area came out, buyers and experts alike have been anxious to know how it can affect the local real estate scene in the long run. Denver’s real estate market has been active so far, with many homes still on sale and a few new development projects on the way. Any negative signs in the news can put a dampener on that growth, which is making local experts and investors anxious.

Thankfully, the local market is still showing signs of positive outputs. Despite the moderate slowdown in buying, there are still willing buyers on the search for new property to purchase. Young adults still flock to the newer developments, either to buy or to rent. The most recent positive news, however, comes in the form of a recent mortgage report.

More Mortgages, More Positives

A recent report from the US Census Bureau ranked Denver as one of the largest metro areas in the country with homeowners carrying a mortgage. Over 76 percent of properties in the city are backed up by mortgages, a very close second to Washington DC’s 79 percent, which is the top rating among all surveyed communities. Other urban centers that were cited in the survey include Colorado Springs, Seattle, Portland and San Francisco.

What this means for the local market scene is simple: property trading continues to be robust throughout Denver. Homeowners continue to move up to different properties within the city, as newer buyers come up to purchase and more home builders show up to make new properties. The news is a sign that, despite the somewhat eminent slowdown, the market is still active and there is still a great potential for owners to sell.

Financial Leverage

The large amount of potential for mortgaged properties in the city has not been lost on investors. Many buyers who cashed in on properties back when the bubble burst are now gaining the fruits of their efforts by selling to homeowners with mortgages. These same investors may be taking advantage of a related but distinct real estate report noting a low negative equity rating for Denver, with only 1.5 percent of homes having negative equity.

The numbers may not be very large as far as selling formerly underwater homes are concerned, but the return of investment can already be considered substantial. With the current value ratings in the city, a seller can expect at least a 10 percent gain for a home that has been paid for in cash or has been fully mortgaged. The trend may continue as rates remain stable throughout the later part of the year.

Keep It Steady

Having a nearly paid-off mortgage in the current housing market can already be considered a boon thanks to the above-listed figures, but that does not mean that a homeowner should go into a home transaction willy-nilly. Experts still remind investors about keeping things in moderation to avoid financing woes in the long run. A sudden panic in the market can start a domino effect that would lead to foreclosures, looming debts, and unsold homes.

If one thinks that trading with a partially-mortgaged owned property is still risky despite the current market trend, it would be best to pay off the mortgage entirely. Getting involved in a shaky real estate transaction can be off-putting to some, and can have negative implications later, especially if committed by a seller who is not fully informed of the risks the trade will entail. Play it safe to avoid long-term negative repercussions.

Denver’s property trading market is still up and kicking, with the latest news about mortgages can calm some frayed nerves, for now. Only time will tell how long this will hold up, but for now, local homeowners are confident that things will stay positive for months to come.

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