Attention housing bubble speculators (Denver: sales, rental, house)

[SkyDog77]

Here's at least one guy who disagrees with you:

Denver home price gains are steep, but not a bubble, economist says - The Denver Post

[Hschlick84]

Could you see median home prices breaking $500k by 2020?

[smarino]

That guy is an economist with the National Association of Realtors who doesn't even live in Denver, so consider the source, LOL! When the last housing bubble burst, we were being assured by realtors that things were still going fine even as things were crashing. Realtors hide this information, but we finally found the completed sales listings in the city we lived in, and they had tanked.There wasn't much warning either because, again, there's all this rah rah cheer leading going on even as Rome burns.

I would say just go w/ your gut instinct and ignore people w/ vested interests. Just remember two things....what goes up will eventually go down, and in a down market, it's extremely hard to sell at any price. Buy a place to live in or use as a rental property, not on speculation that it will appreciate.

[Willy702]

Why does what go up always go down? Rarely works that way in housing. Plus there is another alternative in that average wages could just increase in response to higher housing costs. If increased productivity is happening, and no one can say for sure yet, then absorbing additional costs is a possibility. Economies don't stay stagnant, it's not just new people are showing up and producing what was done before.

Certainly can see a period of no growth or slight drop in prices, but hard to see the price gains doing a 180 and reversing as it appears so many people are begging and pleading for.

[bluescreen73]

You don't have to be an economist for the NAR to know that the market fundamentals are VERY different than they were in 2005-2007. Lending standards are much tighter, unemployment is very low, and flipping/speculation is not as common.

FWIW, people who say "I'm waiting for bubble to burst" can kiss my rosy red keister because what they're really saying is "I hope you lose your shorts so I can get mine."

[sammy87]

The ones that think there is a bubble are the ones on the sidelines that didn't get in.

Too many factors make Denver a strong market.

[headingtoDenver]

IMO you have those that hop into the market and those that complain about the market.

[Dirty-Mill]

I predict home prices will go up, eventually stay flat, maybe go down, and then go up again.

Unless the super-volcano in Yellowstone erupts. If that happens I think home prices might go down a little.

[sammy87]

Dont forget about all the boomers that are retiring out here. I see 55+ developments scattered about. They have cash to burn, hipsters serving coffee do not.

[denverian]

Originally Posted by bluescreen73

You don't have to be an economist for the NAR to know that the market fundamentals are VERY different than they were in 2005-2007. Lending standards are much tighter, unemployment is very low, and flipping/speculation is not as common.

FWIW, people who say "I'm waiting for bubble to burst" can kiss my rosy red keister because what they're really saying is "I hope you lose your shorts so I can get mine."

lol! And during housing market crashes, many people lose jobs, or have pay reductions, so they can't afford to take advantage of the lower prices.

The last "crash" in Denver, our house never went below what we'd paid for it in 2005. I got the feeling that some parts of metro Denver were harder hit.