Denver Real Estate Discussion / Opinion Thread (NO Data Charts) (organic, tax)

[AmFest]

The stabilization of rent has already happened. That of purchase is going to happen in the next 12 months.

[2bindenver]

Why is that?

[AmFest]

Originally Posted by 2bindenver

Why is that?

Renting has finally become a legitimate alternative to purchasing. Both are expensive, but one has stopped appreciating, and the other will soon follow suit.

[2bindenver]

Renting is renting. It is not a viable alternative to owning.

Monthly rents may have stabilized recently, but it needs to continue for more than a month or two to be a trend.

Housing prices have also slowed down. It too is seasonal.

As long as there is very little inventory of properties to rent or to buy, their will be appreciation.

Appreciation does not exist in a vacuum.

[AmFest]

Originally Posted by 2bindenver

Renting is renting. It is not a viable alternative to owning.

Monthly rents may have stabilized recently, but it needs to continue for more than a month or two to be a trend.

Housing prices have also slowed down. It too is seasonal.

As long as there is very little inventory of properties to rent or to buy, their will be appreciation.

Appreciation does not exist in a vacuum.

Oh rent stabilization has happened for more than a month or two. You know that, right?

Inventory represents the supply side only. Even if there is little inventory, if the prices are such that people aren't willing to buy, prices will stall. And when owners who have been entertaining the thought of selling realize their houses are likely not going to appreciate much, they will no longer sit on the fence.

Renting is an alternative to buying. If you don't rent, you buy, and vice versa.

[Dirty-Mill]

Read this article recently:

http://www.bizjournals.com/denver/mo...8&t=1449674841

I don't know if I should continue renting, buy, or get out of Dodge.

[AmFest]

Originally Posted by Dirty-Mill

Read this article recently:

http://www.bizjournals.com/denver/mo...8&t=1449674841

I don't know if I should continue renting, buy, or get out of Dodge.

Rent and house prices will change very little in the next year. In the short run, it doesn't matter which option you go with. In the long run, probably both will go down slightly, so it may not matter even then.

[ImNotDedYet]

The million dollar question is, at what point does the cost of housing stop people from wanting to move here - because until that happens (or the new construction + current inventory is able to satisfy the people looking) the prices will continue to increase. I had a friend recently sell her condo and had inquiries from people out of state willing to buy it if she'd kick her renters out so they could have it ASAP - she didn't and sold it six months later.

[AmFest]

Originally Posted by ImNotDedYet

The million dollar question is, at what point does the cost of housing stop people from wanting to move here - because until that happens (or the new construction + current inventory is able to satisfy the people looking) the prices will continue to increase. I had a friend recently sell her condo and had inquiries from people out of state willing to buy it if she'd kick her renters out so they could have it ASAP - she didn't and sold it six months later.

Why is that a million dollar question?

[ImNotDedYet]

Originally Posted by AmFest

Why is that a million dollar question?

Because if one could figure out the answer to that question, time their investments, etc. one could make a lot of money - perhaps even one million dollars!