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Old 07-30-2013, 08:04 PM
 
246 posts, read 357,464 times
Reputation: 640

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Quote:
Originally Posted by davebarnes View Post
Fuller highlights hot 'hoods | Inside Real Estate News

Fuller highlights hot 'hoods

"InsideRealEstateNews.com looked at the neighborhoods analyzed by FSIR that had at least 50 sales in the first half of the year, to get an idea of neighborhoods that are hot, but percentages would not be easily skewed by low numbers. Most of those neighborhoods were in or near downtown, according to IREN’s analysis. Using that yardstick, Sloan’s Lake, Cheesman Park and West Highland showed the biggest percentage gains in year-over-year median prices, rising by 23.7 percent, 21.5 percent and 19.8 percent, respectively."
Terrible, those are bubblicious increases in price. totally unsustainable and nothing to back it other than speculation and cheap money. Only benefits realtors, speculators and entrenched incumbents. No real wealth created only speculative debt. Yet people cheer the continuing loss of affordability. Shameful.
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Old 07-30-2013, 08:48 PM
 
Location: The Berk in Denver, CO USA
14,059 posts, read 20,411,363 times
Reputation: 22850
Default And, you are an expert...

Quote:
Originally Posted by Calix View Post
Terrible, those are bubblicious increases in price
because you live in SOCAL.
I post facts and not speculative (with no data) opinion.
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Old 07-31-2013, 09:58 AM
 
246 posts, read 357,464 times
Reputation: 640
Quote:
Originally Posted by davebarnes View Post
because you live in SOCAL.
I post facts and not speculative (with no data) opinion.
Double digit price increases are always bad. I have friends in Denver and know that this is unsustainable.

I don't cheer watching prices rise by obscene amounts and watch families and young people struggle more and more, taking on greater debt to get the same good. Home price increase creates no new wealth, only debt driven inflation and generational wealth transfers from the young to the old. There is no benefit to even the owner unless you sell, cash out and move to a cheaper local, so why would you ever want prices to rise if you desire to stay in a community?

We are just setting up for bubble 2.0.

People keep selling the lie that increasing home prices are a good thing, they are not. Whatever figure you may have stored in your head about the “value” of your house, a house is worth only what someone will pay for it. That number has two components: One is the value of occupancy — that is, the privilege of living in the house, mowing the lawn, calling the plumber and so on. This should roughly equal what the house would rent for. The other component is the investment value — how much you think the price of the house will have gone up when you sell it.

Any investment value greater than zero (or zero plus inflation) is suspect, because it depends on the greater fool theory. There is no physical reason why a house should become more valuable at all. It is not growing like a crop. It is not producing anything that you can turn around and sell, like a factory. It just sits there. It becomes more valuable because people believe that it will become more valuable. Worse, because the general assumption that it will become more valuable is already reflected in the price you paid, you need a buyer who believes that it will become more valuable even faster than the general consensus. Hence, the cycle goes on and on until the scheme collapses.

Last edited by Calix; 07-31-2013 at 10:27 AM..
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Old 08-16-2013, 12:20 AM
 
Location: Denver, CO
1,627 posts, read 3,722,776 times
Reputation: 1778
Quote:
Originally Posted by Calix View Post
Double digit price increases are always bad. I have friends in Denver and know that this is unsustainable.

I don't cheer watching prices rise by obscene amounts and watch families and young people struggle more and more, taking on greater debt to get the same good. Home price increase creates no new wealth, only debt driven inflation and generational wealth transfers from the young to the old. There is no benefit to even the owner unless you sell, cash out and move to a cheaper local, so why would you ever want prices to rise if you desire to stay in a community?

We are just setting up for bubble 2.0.

People keep selling the lie that increasing home prices are a good thing, they are not. Whatever figure you may have stored in your head about the “value” of your house, a house is worth only what someone will pay for it. That number has two components: One is the value of occupancy — that is, the privilege of living in the house, mowing the lawn, calling the plumber and so on. This should roughly equal what the house would rent for. The other component is the investment value — how much you think the price of the house will have gone up when you sell it.

Any investment value greater than zero (or zero plus inflation) is suspect, because it depends on the greater fool theory. There is no physical reason why a house should become more valuable at all. It is not growing like a crop. It is not producing anything that you can turn around and sell, like a factory. It just sits there. It becomes more valuable because people believe that it will become more valuable. Worse, because the general assumption that it will become more valuable is already reflected in the price you paid, you need a buyer who believes that it will become more valuable even faster than the general consensus. Hence, the cycle goes on and on until the scheme collapses.
Though people do "improve" their houses, I do find it odd that an aging house tends not to depreciate simply because people believe it's going to have more value. It's not like they're "usefulness" increases while the foundation, roof, plumbing and electrical slowly wear away.
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Old 08-29-2013, 08:12 AM
 
Location: Greenwood Village Colorado
324 posts, read 537,901 times
Reputation: 310
I bought a home near the DTC that was built in 1976. I wanted Cherry Creek HS for my kids and I loved living right by DTC. I was in shock how these old homes, some updated some not and less sq footage seemed to have a higher price tag vs brand new homes out in parker or highlands ranch. it's not like this in other states. The Denver market is crazy.

My the former homeowner did update the kitchen and it's amazing, however the master bath is still from the 70's. I do love the wider streets in the neighborhood and the larger backyards so I was more than happy to pay the crazy prices for a older home near Denver.
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Old 08-30-2013, 01:02 PM
 
5,444 posts, read 4,868,380 times
Reputation: 15033
Quote:
Originally Posted by Freelee View Post
I bought a home near the DTC that was built in 1976. I wanted Cherry Creek HS for my kids and I loved living right by DTC. I was in shock how these old homes, some updated some not and less sq footage seemed to have a higher price tag vs brand new homes out in parker or highlands ranch. it's not like this in other states. The Denver market is crazy.

My the former homeowner did update the kitchen and it's amazing, however the master bath is still from the 70's. I do love the wider streets in the neighborhood and the larger backyards so I was more than happy to pay the crazy prices for a older home near Denver.
What you actually paid for was your location and not the house. People will pay a crazy amount of money to live near DTC because everyone knows that traffic in and out of this area is nuts. I currently work in the DTC and live in an apartment in the DTC. I am 2.5 miles from home to work and sometimes getting home still takes 15 plus minutes. My wife and I plan on buying a house shortly after the first of the year and we are looking in both Parker and Highlands Ranch. We are dreading the commute in and out of the DTC.
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Old 08-30-2013, 01:30 PM
 
2,521 posts, read 3,516,725 times
Reputation: 5081
Quote:
Originally Posted by Freelee View Post
I bought a home near the DTC that was built in 1976. I wanted Cherry Creek HS for my kids and I loved living right by DTC. I was in shock how these old homes, some updated some not and less sq footage seemed to have a higher price tag vs brand new homes out in parker or highlands ranch. it's not like this in other states. The Denver market is crazy.

My the former homeowner did update the kitchen and it's amazing, however the master bath is still from the 70's. I do love the wider streets in the neighborhood and the larger backyards so I was more than happy to pay the crazy prices for a older home near Denver.
I used to live in one of those older homes in the DTC. Built in 1973. It was really well built. I think that is partially why people tend to stay and upgrade vs. move to new construction.
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Old 08-31-2013, 08:21 AM
 
Location: Littleton, CO
3,113 posts, read 4,915,336 times
Reputation: 5434
Quote:
Originally Posted by Freelee View Post
I bought a home near the DTC that was built in 1976. I wanted Cherry Creek HS for my kids and I loved living right by DTC. I was in shock how these old homes, some updated some not and less sq footage seemed to have a higher price tag vs brand new homes out in parker or highlands ranch. it's not like this in other states. The Denver market is crazy.

My the former homeowner did update the kitchen and it's amazing, however the master bath is still from the 70's. I do love the wider streets in the neighborhood and the larger backyards so I was more than happy to pay the crazy prices for a older home near Denver.

Quote:
Originally Posted by headingtoDenver View Post
What you actually paid for was your location and not the house. People will pay a crazy amount of money to live near DTC because everyone knows that traffic in and out of this area is nuts. I currently work in the DTC and live in an apartment in the DTC. I am 2.5 miles from home to work and sometimes getting home still takes 15 plus minutes. My wife and I plan on buying a house shortly after the first of the year and we are looking in both Parker and Highlands Ranch. We are dreading the commute in and out of the DTC.
Quote:
Originally Posted by mic111 View Post
I used to live in one of those older homes in the DTC. Built in 1973. It was really well built. I think that is partially why people tend to stay and upgrade vs. move to new construction.
As the old real estate saying goes, "The three most important things in real estate are: location, location, and location."

Neighborhoods near the DTC have much better access than Parker does to a lot of things, including: DTC (obviously), Light Rail, Downtown, and shopping.

Larger lots and mature landscaping are also bonuses in the Denver area.

Don't discount the school district. If you go to any high school around, Cherry Creek HS is always used as the measuring stick. Besides, DougCo continues to have teacher retention problems.
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Old 09-10-2013, 06:22 AM
 
25 posts, read 34,967 times
Reputation: 47
Another bad thing for buyers is the increase in interest rates. From the time I first went into contract in April to build my home, and the date I locked in the loan, the rate climbed about 1.25 points. I had all intentions of locking in 10 days prior to closing but, with all the trouble in Syria, and with the increase in the treasury yields, this forced me to lock in 30 days prior.
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Old 10-23-2013, 09:34 AM
 
Location: In The Thin Air
12,298 posts, read 8,113,588 times
Reputation: 8940
I placed my condo on the market on Monday and had 5 showings scheduled by yesterday morning. My agent calls me at 4PM yesterday and we had an offer. I immediately accepted it. This is a place I thought I would never be able to get rid of. A little history on it. We bought in 2000 for $72K. It appraised for $93K in 2002. We moved out of it in 2004 and tried to sell it with no luck so we refinanced to a 15 years mortgage. In 2005/2006 there was a proposed assessment that absolutely crushed the values in the complex. The assessment was approximately $19K per unit. People just walked away from their units. The assessment was eventually cancelled and the management company was fired. Then in late 2006 my tenant complained of mold. As the mold was being removed asbestos was discovered so they had to gut the unit. We had to put a ton of cash into it to get it back to normal and then we had to hire an attorney to fight the HOA about the asbestos bill. They wanted to stick us with the $15K bill for our unit and the unit below ours. Our attorney got it down to $1,500. The cause of the mold was a broken hot water pipe in the crawl spice below the 1st floor unit. The condo has been rented ever since and my last tenant moved out at the end of September. I put another $3K in it for carpet, paint and other cosmetics. It really paid off. I listed at $55K and got an offer for $51,500. My principal is around $37,500. We knew we weren't ever going to recover our money but it is great to know that the market for these condos is starting to warm up and now we don't have the headache of being landlords.
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