If you were to come into some money, would you buy a property in 2024?
Last Thursday, I received the following text from a friend…
“As someone who has bought, sold, and rented several different properties in several different economies. if you were going to come into some money, would you buy a property in Denver in 2024?”
I thought it was a truly honest question, and after getting my answer, the person suggested I include the exchange in an upcoming newsletter (these blogs typically go out to my email list first. Sign up here.)
Here is a screenshot of my answer, along with a few bonus thoughts to provide supporting data.
There are two things I know to be true.
1) Most people enjoying having a roof over their head
Paint color preferences and decor styles change, but having four walls and a roof has proven to have a sticky appeal over the years.
2) Given enough time, real estate values go up.
Here is a graph showing Denver area prices over the last 50 years…
All-Transactions House Price Index for Denver-Aurora-Lakewood, CO (1976-2024)
And here is a graph for U.S. home prices. Notice any similarities?
Median Sales Price of Houses Sold for the United States (1963-2024)
Home prices consistently trend up as the demand increases (population growth outpaces new construction availability) and inflation drives prices higher.
Owning real estate, then, is a great way to ensure that inflation works in your favor.
I believe the person who sent the text was primarily asking the question from a financial perspective.
In other words, they were asking:
a) do I expect home prices and rental rates to go up or down over the next few years
and
b) will any potential money they invest make money or lose money?
My short answer to that is…in the short term, I have no clue.
I have ideas, but investing real estate is rarely a short-term decision.
But in the long term? Bet on real estate.
A while back I made a video that explains why it’s bad math to wait (if you can afford to buy a home today). I stand by that video.
There are two core components of wisely approaching real estate buying and ownership.
1) Do NOT view real estate ownership as a get-rich-quick scheme.
Gold rushes and global pandemics aside, real estate values historical climb slowly and consistently.
Occasionally prices dip, but if you don’t have to sell during the dip, you can wait it out and come out ahead.
When you BUY is only 1/2 the equation. When, and if, you SELL, is perhaps even more important.
If you focus on the long-term in real estate, you’ll never find a bad time to buy.
2) Real estate ownership is about more than just money.
Owning a home is about the opportunity to establish permanence and stability for the life you want in the place you want.
Many people I speak with have a view of life that includes an component of peace and security that comes with home ownership.
They don’t want their landlord’s permission to paint or decorate.
They don’t want to worry about their landlord selling their home out of from under them.
They want to make improvements that won’t feel like throwing money away.
They want to build equity.
They want to have long term neighbors.
They want a quality of life that goes beyond short-term number crunching.
So, if I came into money in 2024, would I buy a property in Denver in 2024?
Yes.
If it was …
the right property
in the right location
at the right price.
If my personal finances were in order.
If I could handle the payment.
If long-term real estate ownership was in alignment with my life goals.
…I would buy a property in Denver in 2024.
Do you have a question you would like answered in a future email or article? Email me.
If you have a desire to buy or sell in the coming year, let’s chat.
Life has a way of keeping us all moving, and I love to be your real estate agent.
Contact me here to set up your free and confidential consultation.
Kevin
