Why are the prices of houses falling in CO? (Denver: for sale, real estate)

[C2H (ComingtoHouston)]

What's the deal? Is there a shortage of demand? Is the population not keeping up with demand? I was thinking about moving back to Colorado but i want to know how real estate is doing up there? Any one know?

[OutOfSoCal]

I have been watching the Denver area for over a year and prices are definately going down.I have seen some houses on the market for well over 6 months. Simple supply and demand, suppl is up demand is still there but with more supply something has to give, right now the prices are giving.
Though I don't see it being any different anywhere else, even in So Cal we are seeing a bit of a dip in prices. With the prez election coming up next year look for a bit of a spike next summer, just my opinion

[formercalifornian]

Oh man, you do know how to open a can of worms. Try searching the thread "Housing Decline" for an overview of the issue. You'll find a variety of opinions.

[yukon]

It's happening everywhere, not just Denver.

[Skytripper]

The market IS and has been....on a steady decline for over a year now....in most parts of the country.
A LOT of people are in deep sh*t who were victims of predatory lenders and signed on with ARM's (that have adjusted) and as a result....are now in forclosure. As a result, MANY homes are now back with the banks and their values are dropping. Vacant homes abound or are sitting on the market longer and longer.....unable to sell as the requirements to secure a home loan tighten as a result.
It WILL get worse....likely for quite some time to come.
Definitely a buyers market.
Price reductions abound and most homes/real estate has been way overvalued for far too long now.
You wouldn't believe the sheer number of "For Sale" signs in my area......seems like a HUGE number of homes are for sale....and NOT selling!
It HAD to happen! Real Estate has been CRAZY for far too long.....and it was just not right. Homes that were selling for 500k + just should NOT have been in the first place, IMO.
It has become the "Forclosure of a Dream" across the US as forclosures are now close to a MILLION strong and climbing everyday.
And I personally, hope....the Fed's don't bail out those who were just STUPID and/or blinded by GREED!

[ColoWeb]

ARM ---> Foreclosure ----> Too many houses on the market ---> Prices going down.

[Tom Emmerling]

This is happening all around the country. I have not seen as much of a decline in the housing prices in Fort Collins area yet. It may happen it may not. The good thing about the front range is that it is still growing at a fast pace, so the demand is still there. This in return kinda evens things out. Not that we have a great market here in Fort Collins, don't get me wrong. It is still a tough time to sell, but if you are looking at buying right now you are in a good spot. Although I cannot predict the future, I believe that we will see a little more of a decline but the market will eventually pick up again. If you buy a house now and plan on staying in it for 5 or so years I believe you will still gain some equity.

[formercalifornian]

Originally Posted by Tom Emmerling

It is still a tough time to sell, but if you are looking at buying right now you are in a good spot.

Only if you can get your loan approved.

[Tom Emmerling]

Originally Posted by formercalifornian

Only if you can get your loan approved.

Very true. Right now without 10% down it will be really tough to get a loan. If you have the 10% and good credit no problem.

[vfrpilot]

Very true. Right now without 10% down it will be really tough to get a loan. If you have the 10% and good credit no problem.

Tom- In 1990, this is what we needed to get a loan. About when did this change? Maybe it wasn't such a great idea after all, although it probably helped us when we sold in 2004.