With the economic recovery on track, the housing market is on the upswing and low housing prices will soon be a thing of the past. Within the last year the home prices and interest rates on mortgages have in some places risen up to 22.5 percent higher than they were, meaning that a $140,000 house in 2012 is now listed for $171,500.

Decreasing supply combined with a growing economy are computing to higher home prices. This trend in increasing rates and prices is likely to continue as the economy continues to become stronger. Now is the time to take advantage of the low rates before they get any higher. Bottom line, houses are only getting more expensive, waiting for a lower price or a better mortgage rate may leave you without a home.

A study done by a leading industry source did found that it is actually cheaper to buy than to rent in several markets these days finding it to be 58 percent cheaper to buy than rent in New Orleans and 70 percent cheaper in Detroit. Trends like these suggest the housing market has seen its lowest and will continue to be on the rise for as long as the economy grows at the rate it has been. When considering whether or not to purchase a home keep these things in mind:

It is cheaper to buy than rent right now.

Compared to the post-recession lows both home prices and rents have risen a little bit, but rent has increased more. With the consideration of tax benefits, mortgage rates as low as 4 percent and an only increasing market now is the time to buy and stop wasting money on rent.

Growing economy will cause prices and rates to go up. Historically after a recession home prices went up by 20 percent with in seven years of the lowest point in the recession. The drop in housing prices with this recession was as much as 4 times what it was in the last two recessions. Meaning that the gradual recovery of the housing market could lead to exponentially higher prices than we have seen in the past.

Inflation is imminent.

In the last five years, the amount of money put into circulation has tripled in an attempt to kick start economic recovery resulting in a dollar worth two thirds its value. Now that the economy is on an upswing, the Federal Reserve will remove currency from circulation to reinstitute the full value of the dollar.

The housing market has already bottomed out.

Nationally, home prices have increased 10.2 percent since 2012 and are still climbing. It is safe to say that home prices aren’t getting cheaper but more costly.

Market conditions for purchasing a house are almost optimal.

With current rates and prices so low and evidence showing a steady increase in house values, the time to buy is now. Taking advantage of market prices now is a chance not everybody gets. As a potential home owner, striking while the iron is hot will save lots of money in the long run. Fortunately, the window of opportunity is still open and becoming a homeowner now is a decision you will appreciate years down the line.

Take a step towards your future and invest in Aurora real estate today!

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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