Is the Denver housing market experiencing a bubble?

[Timmyy]

Originally Posted by headingtoDenver

Ha! I lived in Vista, back in the early 2000s and I spent a lot of time in the Gaslamp District. It wasn't too bad, but then again I was in my early 20s and nothing bothered me. Also, I remember going to a lot of Padres games and Chargers games at Qualcomm. That stadium was horrible for baseball and it didn't help that it was out in the middle of nowhere. Of course I haven't been to SD since 2002. I would love to visit again and take in a game at Petco. I've heard that SD is even more amazing now.

The Gaslamp was in good shape in the early 2000s. I am talking about the 80s and early 90s. Today it is just awesome down there.

I have seen a lot of baseball at the Q. I still prefer to call it Jack Murphy Stadium. Petco is truly awesome. We go to at least one game when we out there. In fact we leave for San Diego a week from tomorrow.

[Count David]

Originally Posted by DavidBilly

Bubble
when folks pay $250k for 6950 Lowell Blvd
and
$310k for 636 Vrain Street id say we are in a bubble.

Lowell = Highlands-adjacent
Vrain = walking distance to light rail

[DavidBilly]

Originally Posted by David Aguilar

Lowell = Highlands-adjacent
Vrain = walking distance to light rail

6950 Is Not adjacent Highlands, one could walk to Rockys Auto or a club along Federal, get some cheap used car parts from the nearby salvage yards, go to a near by car auction, shop for a mobile home from the nearby dealers, etc.
The thing is a flipper paid $130, painted, refinished floors, minimal updating and made $100k off some poor first tine FHA buyer. More than likely this will not end pretty.

[Count David]

Originally Posted by DavidBilly

6950 Is Not adjacent Highlands, one could walk to Rockys Auto or a club along Federal, get some cheap used car parts from the nearby salvage yards, go to a near by car auction, shop for a mobile home from the nearby dealers, etc.
The thing is a flipper paid $130, painted, refinished floors, minimal updating and made $100k off some poor first tine FHA buyer. More than likely this will not end pretty.

Just foreshadowing as to how it could be marketed....

[kevin_in_Denver]

"But as Wash Park increased in value, Nevitt says it resulted “in an ironic value disequilibrium” because high-rise towers, expensive homes and duplexes often clashed with the neighborhood’s predominantly modest style."

This was his gobbledygook specious reason for downzoning West Wash Park so that it could gentrify to the high levels of East Wash Park. (He lives in WWP, natch, and his house has tripled in value since the late 1990s)

I'm sorry but Chris Nevitt is NOT my go to guy for neighborhood history.

"The BEST time to BUY is between Nov 22 and Jan 03.
A lot less competition and sellers are more desperate."
In the current market, this is the best advice I've heard. There won't be that many desperate buyers at that time. And since it's from Dave Barnes, you know it's based on factual data.

[ShampooBanana]

Originally Posted by T. Damon

I'm not from Denver and not that familiar with the local market but am an occasional visitor (actual, as well as lurking virtually, here) and from what I've witnessed living here and how I think that San Diego and Denver are similar in many ways- especially recent downtown/core neighborhoods development- I'd be betting on this as well. This is obviously just personal, anecdotal opinions but I think they hold some merit.

Our neighborhood resembles some of Denver's first ring suburbs; classic housing stock, neighborhood "village" retail area and close proximity to downtown (we are walking distance- 2 miles, or a quick bus/Uber ride) as well as other, similar neighborhoods, has made for heady and rapid gentrification and attendant price increases in the last decade or so. I'm sure there are more that a few neighborhoods in Denver that fit a similar description. I'll just say that don't let a few rundown buildings, sketchy pockets or poor school districts immediately dissuade some of you there in staking a claim in some of these places because things can turn around very quickly.

This area fit all of those above descriptions when we bought 18 years ago and you'd be surprised how a couple of building upgrades, especially on corners lends to others surrounding those to also upgrade; a failing local school becomes a foreign language Charter that now posts high scores and wait lists; local businesses invest and organize a neighborhood discover "Walkabout" open house and, voilà, bungalows are selling for $600-700/s.f.!

South Park, San Diego Official Website - Welcome

A cottage next door to us which went into a bidding war for $100k over asking, $550k, a year ago just went into another bidding war and sold for over $1M this month after a remodel and addition by a developer. We bought our house for $179k, which seemed like a heck of a lot of money for us at the time. It is a unique market here to be sure but I don't necessarily see the fundamentals as being that totally different than yours.

So, while it is certainly painful for many, and profitable for some to be caught up in the maelstrom that describes Denver's (and this) R.E. market now, I hope that some folks are as lucky as we were, or just more attentive to the possibilities and those of you wanting to stake a claim in the city are able to do so and be a part of a neighborhood's renaissance while you still can get in.

I think Denver has many of the same possibilities and opportunities as San Diego, they strike me as sister cities in many ways so for those of us on the outside it just makes for a more enjoyable and fun city to visit with what's going on.

Just an outsiders 2¢

Yes, there are some similarities between San Diego and Denver. Not just in S.D. but I've seen it repeated many many times in other places I've been, and as a student of urban history (I was an urban planner in a past life), but over the past 25 years or so it's happened all over. San Francisco is an extreme example, along with NYC, Chicago, Portland, Minneapolis, Austin, Philly, etc. etc.

A city gets "hot", especially the downtown, re-investment occurs with the help of the City setting the stage through major infrastructure investment or transportation improvements (think Union Station, light rail extensions, re-zonings to allow higher density residential uses, environmental cleanup), and the private investment follows. Urban pioneers fix up some houses, developers tear down some blight and put up new housing, entrepreneurs open up trendy businesses, and then suddenly it becomes an "up and coming" area, which further attracts investment (speculators) and it all snowballs. Formerly ramshackle housing going for $200,000 5-10 years down the road is selling for double that.