Do any of you feel like real estate prices are seriously inflated in Colorado as of late? (Cortez: real estate market, rentals)

[davebarnes]

People are still moving to Colorado in significant numbers. They have to live somewhere.
So, no to maybe.
The big difference this time bubble wise is that very few houses are being purchased with zero down.

[ponyupgrl]

Originally Posted by Mike from back east

I contend a big part of why prices are so high and why the housing supply is constrained is tax cuts in 2017 for the upper brackets and for corporations put tons of money in the hands of people who didn't need it for expenses so they invested it by buying homes for rental markets.

https://www.redfin.com/news/investor...hases-q2-2021/

I'm not so convinced that today is too different from early 2010s in terms of % of homes being snagged by investors... I do wish they had this data broken out regionally though. Or in a way which it could be consumed more directly.

[StealthRabbit]

Colorado RE prices jumped quite a bit in 1970s, cooled in early 80s, again in 2000, then 2008.

Currently we are 13 yrs into a normal 7-9 yr cycle.
This time It has been propped up by various circumstances.

This too will adjust. (unique and desirable places will retain higher values).
I don't expect to see a 30+50% decline we had in the past. I have been wrong before. I have been stuck with a pristine, view Colorado home that would not sell, even priced well under market. (for years). Big difference today... Lots of people have lots of money. That has not always been the case.

[sammy87]

I made over 35% off the home I bought at teh end of 13' and sold 5 years later.

My current home I bought in early 19' is worth about 2x what I paid for it.

The market dictates the price. PPL are willing to fork over the cash then the market is safe. If the homes start sitting or forclosing then you have to worry.

[otowi]

My home has tripled in price since I bought it 15 years ago.

[brk330]

In the year 2000 you could buy an under 600 sq ft 1 bedroom Walton Village condo in Steamboat for $75,000.
By 2006 they were selling for $275,000
In 2012 they were back down to $75,000.
They are now at $325,000 + and some are 'Zestimated' at $450,000 +
What does it all mean? I got no idea.

[LHS79]

Originally Posted by ponyupgrl

Inflated? Yeah of course they have gone up - everywhere has. Overvalued? I don't think so.

The area has a great climate (mild, but 4 seasons) + proximity to a good airport (at least the Front Range where a lot of the population is) + lots of recreation nearby.

Like the "300 Days of Sun!" myth the 4 seasons myth is also true- spring and fall usually last only a few weeks, not 3 months.

[Therblig]

Originally Posted by sammy87

The market dictates the price. PPL are willing to fork over the cash then the market is safe.

2007? Is that you, ol' buddy?

[StealthRabbit]

Originally Posted by otowi

My home has tripled in price since I bought it 15 years ago.

<10% return... (I'm happy with 'easier' gains using other means!)

Just use the rule of 72 to 'estimate' gains, but factor the RE details (cost of sale / replacement dwelling / moving / logisitics / time...)
https://www.investopedia.com/ask/ans...s-the-rule-72/

Usually a personal residence is not a great "investment quality" asset, but everyone has different value placed on rent vs own, utilization of capital, security of lodging...

Just do what is best for your situation (I am glad I am not just starting out in home buying)

Bought my first home in Colorado for my parents when I was age 19.

It was ~80 yrs old and $16,000. I was making $1.65 / hr (gross)... so payment (10% interest) was ~ 40% of my monthly net pay. But... that was my parent's home, I still needed to pay rent for my own apartment (a really old mobile home).

life rolls on.

My current home is assessed at 10x what it cost me to build, but it is no screaming financial return. It is just a place to lay my head. But would be very expensive and impossible to replace. (Pristine view, national protected scenic area, no new homes allowed).

[Hiruko]

I'm concerned the rapidly increasing housing prices in the United States are going to contribute to political instability.

The Economist: Housing is at the root of many of the rich world’s problems