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Old 04-28-2014, 07:40 PM
 
91 posts, read 147,448 times
Reputation: 138

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Quote:
Originally Posted by elco5280 View Post
when the "all-cash investors" flee; time to lead the middle-class, mortgage obtaining, sheep to slaughter. Household incomes can't support these prices so once the investors dry up the prices will fall. I wouldn't buy in today's market especially in denver... Though, i would sell of course :d

"the economist has compared house prices with the rental cost of housing and with median household income. If over the long-run house prices rise at a faster rate than either of these two measures, it suggests that either rents or incomes must rise, or house prices must fall. when we last published our data in june 2013, house prices looked to be at or below fair value compared with rents (meaning within 10% of the long-run average) in all but two cities. nine months later, six cities lie outside that boundary. In the frothiest places—denver, los angeles and san francisco—houses are overvalued by around 16%"

http://www.economist.com/blogs/graphicdetail/2014/02/us-house-prices

why yes there is plenty of research out there that has formed my opinion and if it differs from your opinion then so be it, i'm cool with that. I do wonder why you're here because this entire forum is opinion though?[/quote]

The entire forum is opinion based? Not quite. There's at least one or two actual relevant facts in here. They are hard to find though among all the "mortgage obtaining, sheep to slaughter middle class" comments.
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Old 04-29-2014, 04:47 AM
 
182 posts, read 281,720 times
Reputation: 117
After moving to San Diego, I so wish I could get a 3,000 sq foot house for under $800,000 (really more like a million for that size). I'll take the housing market in Colorado any day over this overinflated crap. So is it true that there are bidding wars taking place and offers being accepted above asking price in Denver (Parker specifically)? Maybe it's time to unload our rental....
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Old 04-29-2014, 07:07 AM
 
254 posts, read 430,165 times
Reputation: 189
Quote:
Originally Posted by Luvs2Trvl View Post
.... So is it true that there are bidding wars taking place and offers being accepted above asking price in Denver (Parker specifically)? Maybe it's time to unload our rental....
I have two anecdotes to share, I'm sure there's hard data somewhere to help give additional insights, as these examples are not specific to Parker.

1. My neighbors down the street listed their house in Highlands Ranch for about $20K more than they planned to, based on the realtor's recommendation. In the first 6 hours the house was on the market, they received 3 offers and 2 were over asking price. (Early April sale)

2. My co-worker just sold a house in Wash Park. There were 13 showings the first day, and two offers above asking price, including a cash offer for $30K above asking, in addition to two offers at asking price. This is for a $615,000 house that has a high likelihood of being scraped. (Sold within the past 2 weeks)
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Old 04-29-2014, 07:27 AM
 
Location: Aurora, CO
6,563 posts, read 10,277,227 times
Reputation: 9807
Quote:
Originally Posted by SkyDog77 View Post
But then you live in Oklahoma or Texas.

There is something to be said for living in a place people want to live. It's part of what makes people spend a higher portion of their income on housing than they would in other cities.

I could cut my home cost in half and move to the suburbs and have a bigger house with much more land, but then I would live somewhere I don't want to live.
Agreed. Houses may be cheaper in a place like Dallas-Fort Worth, but you're living in a flat, barren, hot, and humid armpit. From the lifestyle perspective DFW absolutely blows. I'll pay a little more to live here and not feel like I'm on the surface of the sun for 1/3 of the year.
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Old 04-29-2014, 10:10 AM
 
20,912 posts, read 39,195,706 times
Reputation: 19197
Quote:
Originally Posted by MountainK View Post
..... This is for a $615,000 house that has a high likelihood of being scraped.
Quote:
Originally Posted by Luvs2Trvl View Post
After moving to San Diego, I so wish I could get a 3,000 sq foot house for under $800,000 (really more like a million for that size). I'll take the housing market in Colorado any day over this overinflated crap. ...
K: When I hear these reports, I just sit and wonder where the hell people are getting this kind of money? Are they all surgeons? Drug money? I really can't imagine the salary it takes to spend like that and what type of work they do. It sounds bubble-licious to me, but maybe they have a huge existing net worth in a home they'll plow back into something ever-grander. And maybe that location (Wash Park) is worth it to them.

Luvs: We couldn't afford our million dollar taste in the DC area so we moved to COLO SPGS in 2005 and got it all for half a million, after selling a clunker back there for $500k that would only bring $200k in my local market here.
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Old 04-29-2014, 10:54 AM
 
5,444 posts, read 4,855,106 times
Reputation: 15033
Quote:
Originally Posted by Mike from back east View Post
K: When I hear these reports, I just sit and wonder where the hell people are getting this kind of money? Are they all surgeons? Drug money? I really can't imagine the salary it takes to spend like that and what type of work they do. It sounds bubble-licious to me, but maybe they have a huge existing net worth in a home they'll plow back into something ever-grander. And maybe that location (Wash Park) is worth it to them.
I've wondered this myself. I love watching the home shows on HGTV and how they (property Brothers) will find them and remodel a house. The client's budget will be 600,000. They then say that both clients are teachers or something similar in pay. My thought is always what f'in teacher can afford a 600,000 dollar mortgage? The funny thing is when the clients hear about some damage that needs to be repaired and the repair bill is $600 and they look like someone just shot their dog.
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Old 04-29-2014, 11:05 AM
 
1,743 posts, read 1,393,911 times
Reputation: 807
Quote:
Originally Posted by headingtoDenver View Post
I've wondered this myself. I love watching the home shows on HGTV and how they (property Brothers) will find them and remodel a house. The client's budget will be 600,000. They then say that both clients are teachers or something similar in pay. My thought is always what f'in teacher can afford a 600,000 dollar mortgage? The funny thing is when the clients hear about some damage that needs to be repaired and the repair bill is $600 and they look like someone just shot their dog.
LOL that is very true. Those so called teachers must be making like around 120-150k a year or something to be able to afford something like that unless they are putting down a huge down payment. I feel like too many people live border line tho , kinda pay check to pay check to meet some kinda status quo.
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Old 04-29-2014, 11:49 AM
 
Location: Washington Park, Denver
6,950 posts, read 6,563,224 times
Reputation: 7444
Quote:
Originally Posted by Mike from back east View Post
K: When I hear these reports, I just sit and wonder where the hell people are getting this kind of money? Are they all surgeons? Drug money? I really can't imagine the salary it takes to spend like that and what type of work they do. It sounds bubble-licious to me, but maybe they have a huge existing net worth in a home they'll plow back into something ever-grander. And maybe that location (Wash Park) is worth it to them.
To me it was worth it to build a house in a neighborhood that I want to be in for a long time.

For what I spent in Wash Park, I could probably live in Oklahoma on 100 acres and have a 9,000 square foot house. In Wash Park it gets me 3,200 sq/ft on a 7,800 sq/ft lot.

I plan to be in this house for at least 20 years. If the market goes up and down over the next decade, I don't really care all that much. Most of the people I talk to to in the neighborhood have made the conscious decision that this is where we want to be and raise our kids. I do not get the impression that many people are playing the early 2000s buy/flip game. If the market does correct, I would guess that people will just hold inventory unless they absolutely have to move.
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Old 04-29-2014, 11:53 AM
 
231 posts, read 294,095 times
Reputation: 350
Quote:
Originally Posted by Mike from back east View Post
K: When I hear these reports, I just sit and wonder where the hell people are getting this kind of money? Are they all surgeons? Drug money? I really can't imagine the salary it takes to spend like that and what type of work they do. It sounds bubble-licious to me, but maybe they have a huge existing net worth in a home they'll plow back into something ever-grander. And maybe that location (Wash Park) is worth it to them.

Luvs: We couldn't afford our million dollar taste in the DC area so we moved to COLO SPGS in 2005 and got it all for half a million, after selling a clunker back there for $500k that would only bring $200k in my local market here.

This is exactly why my wife and I are moving out of Southern California. We make decent money together, but it isn't worth it anymore. Our 1156 sqft 3 bedroom 1 bathroom is on the market for $450k. Our house is tiny and it is almost worth half a million dollars out here. We found something twice the size for $200k less in what I consider a more desirable part of the country.
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Old 04-29-2014, 12:16 PM
 
Location: 5280 above liquid
356 posts, read 515,407 times
Reputation: 383
Quote:
The entire forum is opinion based? Not quite. There's at least one or two actual relevant facts in here. They are hard to find though among all the "mortgage obtaining, sheep to slaughter middle class" comments.
Here's a nice read by someone far smarter than both you and I- Confounded Interest | March Pending Home Sales Up 3.4% (Back To 2007 Levels) – The Non-mortgage Recovery?

The pretty pictures show that although the pending home sales index increased, it wasn't done via mortgage purchase applications which are stalled. The graphs showed that with the feds artificial manipulation of the housing market with their increased balance sheet made a feeding frenzy for all-cash investors... thus increasing home prices for the average Joe to afford.

Add to it the fact that "...real median household income, average hourly earnings YoY and the employment-to-population ratio all falling" compared to "Case-Shiller index [rising] 12.9% YoY], you have a slaughter of the average Joe home buyer.

Confounded Interest | Juggernaut: Case-Shiller 20 Home Price Index Rose 12.9% YoY In Feb (Too Bad Incomes Aren’t Rising That Fast!)
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