Denver Real Estate Discussion / Opinion Thread (NO Data Charts) (house, buy)

[jazzlover]

Originally Posted by SkyDog77

The city of Denver did not experience Bubble I. Is this Bubble I?

That is nonsense. Metro Denver certainly did experience Bubble I. I was doing a lot of economic analysis for my work at the time and it was readily apparent. Denver did not crash as deep as other locales in the country, but the Bubble was there and it did deflate. And plenty of people in the metro area got to take a big "haircut" if they had to sell during that period.

[livecontent]

Originally Posted by JD401

I hear what you're saying, and don't disagree, but still think you and the poster are talking about two different things. Wheat Ridge, Arvada, etc. wouldn't be considered part of the "immediate metro area" would they? When I hear that I'm thinking east of 25, south of 70. But that was the point. You're talking about going in to other municipalities, and that there is land available there. Not in the immediate metro area.

What area you saying? Of course, Wheat Ridge and Arvada are part of the immediate metro area. These areas are the closest suburbs to the Downtown core. East of 25, south of 70--where are you coming from?

Livecontent

[philberf]

Originally Posted by jazzlover

That is nonsense. Metro Denver certainly did experience Bubble I. I was doing a lot of economic analysis for my work at the time and it was readily apparent. Denver did not crash as deep as other locales in the country, but the Bubble was there and it did deflate. And plenty of people in the metro area got to take a big "haircut" if they had to sell during that period.

I know some people who got hosed in Stapleton. Had to sell for nearly 100k under what they bought for. It's too bad they weren't able to ride it out.

[denverian]

Originally Posted by philberf

I know some people who got hosed in Stapleton. Had to sell for nearly 100k under what they bought for. It's too bad they weren't able to ride it out.

That happened to my next door neighbors. They had to move for a job relocation, but the people who bought it made about $100K in the 2 years they lived in it.

From what I'm seeing, prices in my Stapleton neighborhood have been flat that past year.

[headingtoDenver]

Originally Posted by philberf

I know some people who got hosed in Stapleton. Had to sell for nearly 100k under what they bought for. It's too bad they weren't able to ride it out.

I'm not saying this is the reason for the people you knew personally, but I wonder how many people bailed on their house strictly because of the market. They obviously could afford the house when they initially bought it, but did they panic when the value dropped so they sold for a loss to stop the bleeding per se? Obviously, there are plenty of instances where people had no choice due to a job relocation or a job loss or something like that, but I'd like to see numbers of how many people bailed because they no longer had equity in their home and they hit the panic button.

[philberf]

Originally Posted by headingtoDenver

I'm not saying this is the reason for the people you knew personally, but I wonder how many people bailed on their house strictly because of the market. They obviously could afford the house when they initially bought it, but did they panic when the value dropped so they sold for a loss to stop the bleeding per se? Obviously, there are plenty of instances where people had no choice due to a job relocation or a job loss or something like that, but I'd like to see numbers of how many people bailed because they no longer had equity in their home and they hit the panic button.

I know it's just an anecdote, but they did so unwillingly.

[headingtoDenver]

Originally Posted by Timmyy

Oakland? Huh.

5 out of the top 10 are all in California. I think it was because they were hit a lot harder than majority of the US. Now you have investors and foreign buyers scooping up properties right and left. I'm actually surprised the same isn't happening in Florida.

[headingtoDenver]

I saw on CNN that a lot of lenders are getting back into sub prime loans. I wonder what this will do to the market?

[livecontent]

Notice that the percentage increase for home values in Wheat Ridge is the highest at 11.5%. I am really not surprised as this suburbs is positively been affected by the increase value in the neighborhoods of North Denver. Many are seeing this adjacent suburbs as a good place to live and still be close to the amenities of Denver. It has similar density and will become a more walkable urban area as west 38th is further developed.

Also, some view the schools in Jeffco as a better options. Wheat Ridge will become much wealthier and with a younger population. It was the only suburbs in Denver that lost population from the last census in 2010 because of it has the highest population age. The city leaders are very thrilled because the elderly have been in homes for decades and consequently qualified for senior tax exemptions.

I go around Wheat Ridge very often and I am very surprised at the appeal and variety of homes in many different hidden neighborhoods off side streets. Neighborhoods are well treed and established with great parks with the advantage of the Wheat Ridge Greenbelt along Clear Creek.

Also, it is the major part of the wonderful great area we call Applewood where it meets Lakewood and Golden. You really want to see something of this astounding area, Go west on West 32nd., at Simms head south and you will be in a winding road overlooking Applewood. It is not so well know to newcomers but us long term residents know the best places--so take a look.

Livecontent

[ELCO5280]

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

"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