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Old 01-13-2020, 05:39 PM
Status: "Looking forward to President Harris" (set 23 days ago)
 
Location: Berkeley, Denver, CO USA
15,633 posts, read 23,512,030 times
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Quote:
Originally Posted by jweb29 View Post
hah! Good for me is 350k range! 3 beds 2 baths.... I guess it depends on our standards.

Been touring some places, and as I explore the neighborhoods, I can't help but think about how things are slowing down, how states are legalizing marijuana and that industry is losing it's novelty.

Interest rates are at an all time low. Yet still we are slowing down. What happens when they go up?
1. Very few houses available that meet your criteria south of I-76 and west of Quebec St.
2. No one moved here and bought a house because we legalized dope.
3. Mortgage rates are not at an all time low. But, they are close. And, why do you think they are going to go up in the near future?
4. This chart shows sales activity for greater Denver has increased in the last 6 years. Not by much, but "slowing down" is not indicated.
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Old 01-13-2020, 06:03 PM
 
166 posts, read 109,838 times
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Quote:
Originally Posted by davebarnes View Post
1. Very few houses available that meet your criteria south of I-76 and west of Quebec St.
2. No one moved here and bought a house because we legalized dope.
3. Mortgage rates are not at an all time low. But, they are close. And, why do you think they are going to go up in the near future?
4. This chart shows sales activity for greater Denver has increased in the last 6 years. Not by much, but "slowing down" is not indicated.
I've seen a few houses in Villa Park / Barnum / Athmar Park. I gotta decide now which neighborhood has the most sustainable potential in it...

You make good points with the other things.
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Old 01-13-2020, 07:20 PM
 
Location: Just south of Denver since 1989
11,485 posts, read 31,078,908 times
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How will you do that?
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Old 01-14-2020, 09:58 AM
 
572 posts, read 201,845 times
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Quote:
Originally Posted by jweb29 View Post
I've seen a few houses in Villa Park / Barnum / Athmar Park. I gotta decide now which neighborhood has the most sustainable potential in it...

You make good points with the other things.
My bet would be on 1) Athmar Park, 2) Villa Park, and 3) Barnum.

Athmar Park has proximity to more amenities and "thriving" neighborhoods like Baker, Wash Park, and Platt Park. I've heard they are working on making Federal a more walkable corridor over time, so that could have a positive impact over time.

I like Barnum, but it's a little too downtrodden for me at the moment. There are some really nice homes there, but they tend to be mixed in with some really beat up places. I think that could negatively impact property values in the future.

Villa Park has the West Colfax corridor, which I think has some good potential. There's also light rail and proximity to Sloan's Lake.

When we bought in Old Englewood, the goal was to be near a major business thoroughfare (S. Broadway). Those are the neighborhoods that I think tend to have the most upside. Why? Because they have the opportunity to build up and fill in with amenities that people want to be near, such as restaurants, bars, coffee shops, and small shopping boutiques.
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Old 09-10-2020, 07:14 AM
 
Location: Colorado Springs
6,080 posts, read 6,401,177 times
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Increase in home prices wipes out savings from lower mortgage rates for Denver metro

Single-family homes come with bigger monthly payments than a year ago

https://www.denverpost.com/2020/09/1...wer-mortgages/

"Lower mortgage rates during the pandemic have meant lower monthly payments, providing buyers across the country with a strong motivation to purchase a home. But in metro Denver, home prices have appreciated so rapidly this summer that the benefits of that cheaper money have evaporated.

Metro Denver recorded a 12.1% annual gain in the median price of a single-family home sold in August, according to the Denver Metro Association of Realtors. That was up from a 7.5% annual appreciation rate in July, a 3.2% annual pace in June and a 0.9% gain in May.

“If home prices rise 10% plus more than where we are today, consumers will really start to feel pinched and many may become priced out of the market,” said Ali Wolf, chief economist at Meyers Research, in an analysis of the last week of July housing numbers.

Based on Denver’s current rate of home price appreciation, Wolf said that the savings lower rates provided are pretty much gone. Buyers going forward face a squeeze in affordability — the pinching has begun.

Here’s what the math looks like. In August 2019, the median price of a single-family home sold in metro Denver was $455,000, according to DMAR. And the average interest rate on a 30-year mortgage during the last week of August in 2019 was 3.58%, according to Freddie Mac.

Assuming a buyer provided a 10% down payment, the principal and interest payments on the mortgage would have been $1,857 a month.

Contrast that with last month, where the median price of a single-family sold was $510,000 and 30-year mortgage rates averaged 2.91% at the end of the month. A buyer faced a payment of $1,913, or $56 more a month than a year earlier.


Assume that builders and sellers had met buyer demand, keeping prices flat over the year. Lower mortgage rates would have resulted in a monthly payment of $1,707, or a savings of $206 a month.

“The assumption is that mortgage rates will stay low for the foreseeable future. That helps, but doesn’t eliminate, the risk that the housing market could still face an affordability crunch if home prices continue to rise at the rapid pace,” Wolf said.

A worst-case scenario would have continued rapid price gains followed by a spike in mortgage rates. And there are some early indications that buyers who responded to low rates may be having second thoughts.

LendEdu did a survey of people who bought homes during the pandemic, and 54% cited the desire to take advantage of historically low mortgage rates, while 15% were trying to escape areas hard hit by the pandemic and 24% said the outbreak didn’t play a role in the decision.

Of those pandemic buyers, more than half, 55%, regretted taking on a new home given all the economic uncertainty and about 30% said purchasing a home had caused them to struggle financially.

Affordability matters in another way. As affordability deteriorates in metro Denver, it will shrink the pool of available buyers.

Zillow published a study Tuesday that estimates there are 2 million renters working remotely who are priced out of the market where they live but who could afford a starter home if they moved. In metro Denver, Zillow estimates there are 61,321 renter households who could afford a starter home elsewhere while keeping their Denver-based job.

Those renters represent about 14.6% of all renter households, which was the fifth-highest rate among the metros examined after San Jose, San Francisco, Los Angeles and San Diego, all in California.

“If remote work becomes a bona fide long-term option especially with the pandemic, that could reshape the U.S. housing market by opening up homeownership to people renting in expensive parts of the country,” said Zillow economist Jeff Tucker in the report.

Mike Hills, vice president of brokerage at Atlas Real Estate in Denver, suspects one reason home price gains are so strong is that people are relocating to metro Denver from denser metro areas like New York, San Francisco, Seattle and Washington, D.C.

“A lot of the research is suggesting that Denver is one of those cities that will experience a larger than normal rise in population because people are fleeing the big cities,” he said.


So long as demand outstrips supply, that should serve to support home prices, even if mortgage rates do rise, he said.

It is also worth noting that condo and townhomes, which were up only 3.7% in price on the year in metro Denver. still carry a cheaper payment than what was available a year ago."
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Old 09-10-2020, 08:58 AM
 
Location: Just south of Denver since 1989
11,485 posts, read 31,078,908 times
Reputation: 8109
Default Rubbish

Nonsense.

It increases buying power. I have buyers who qualified for $500,000 mortgage now qualify for 520,000 same payment.

I had another buyer opt for a 15 year mortgage because of the payment.

The challenge is the with record high closings in August, and the terribly low inventory, there is a lot of competition for the properties on the market.

People want study’s and homeschool rooms. They don’t feel the the place they live in offers tranquility.
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Old 09-10-2020, 02:05 PM
 
Location: Denver CO
23,283 posts, read 14,499,183 times
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Quote:
Originally Posted by 2bindenver View Post

People want study’s and homeschool rooms. They don’t feel the the place they live in offers tranquility.
I've always said that I bought more house than I needed* - a 3 bedroom plus (very small) loft for a single mom with 1 kid.

That extra space has become quite handy with eschool - the third bedroom is a guest room/office and my son has taken it over as his eschool room. I am working downstairs in the great room and he is in the office with the door closed so we both have the privacy and level of quiet that we need, but he's not stuck in his bedroom all day long.

So I'm not one of those people who needs to buy a larger home to make it through this pandemic but I can certainly understand why those who are in a position to buy might want to, even if they had previously thought their home was large enough.

* I added the third bedroom (new construction) because it was a minimal amount when building and definitely worth it for resale. It was an extended 2nd floor, not chopping up the same amount of space into smaller rooms, but it was only about $7000 to add it to the construction contract.
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Old 09-12-2020, 11:46 PM
 
2,763 posts, read 2,609,045 times
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Quote:
Originally Posted by 2bindenver View Post
Nonsense.

It increases buying power. I have buyers who qualified for $500,000 mortgage now qualify for 520,000 same payment.

I had another buyer opt for a 15 year mortgage because of the payment.

The challenge is the with record high closings in August, and the terribly low inventory, there is a lot of competition for the properties on the market.

People want study’s and homeschool rooms. They don’t feel the the place they live in offers tranquility.
I don't think they are saying it doesn't increase buying power, just that the market increased MORE than the buying power increased due to lower rates.
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Old 09-13-2020, 10:33 AM
 
Location: Just south of Denver since 1989
11,485 posts, read 31,078,908 times
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Most buyers decide now is the time to start looking. Then they get qualified for a loan. In the very short time between looking and finding, prices do not change all that much.

I have one buyer who laments waiting, started looking in February and cancelled his contract in March. He believed the market would crash. His job is stable and he is on a month to month lease. Prices are $5,000 to $10,000 higher now and in multiple bids over asking. He had little competition before and I hear nearly daily how he made the worst decision of his life.

After all these years, I do not have a crystal ball.
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Old 09-13-2020, 12:14 PM
 
2,782 posts, read 3,979,009 times
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Quote:
Originally Posted by 2bindenver View Post
Most buyers decide now is the time to start looking. Then they get qualified for a loan. In the very short time between looking and finding, prices do not change all that much.

I have one buyer who laments waiting, started looking in February and cancelled his contract in March. He believed the market would crash. His job is stable and he is on a month to month lease. Prices are $5,000 to $10,000 higher now and in multiple bids over asking. He had little competition before and I hear nearly daily how he made the worst decision of his life.

After all these years, I do not have a crystal ball.

Every year we have posters saying that it is about to correct and they are waiting. 2013, it was going to get cheaper. 2014 it couldn't go up any more. 2015 just waiting for it to come down etc. etc. etc.

Your buyer has lots of company.

Of course some times it does come down...but I don't see that happening in Denver anytime soon. If it does it will be balanced by higher interest rates.
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