U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > U.S. Forums > Colorado > Denver
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 09-13-2020, 12:59 PM
 
Location: Chicago 'burbs
195 posts, read 102,287 times
Reputation: 290

Advertisements

Quote:
Originally Posted by mic111 View Post
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.
anytime when home prices are not connected to household income you are in speculation territory. is not if... is when!

mathematically is impossible

there are winners and losers in this game
Rate this post positively Quick reply to this message

 
Old 09-13-2020, 02:22 PM
 
Location: Denver CO
23,283 posts, read 14,506,664 times
Reputation: 35925
Trying to time the market is just pure dumb luck if you happen to get it right
Rate this post positively Quick reply to this message
 
Old 09-14-2020, 12:32 AM
 
2,763 posts, read 2,610,056 times
Reputation: 5322
Quote:
Originally Posted by Di3s3l_Pow3r View Post
anytime when home prices are not connected to household income you are in speculation territory. is not if... is when!

mathematically is impossible

there are winners and losers in this game
What do you mean when you say "not connected to household income"?

Isn't every single sale to an individual person or family connected to household income?
Rate this post positively Quick reply to this message
 
Old 09-14-2020, 04:35 AM
Status: "Looking forward to President Harris" (set 25 days ago)
 
Location: Berkeley, Denver, CO USA
15,638 posts, read 23,520,652 times
Reputation: 26875
Quote:
Originally Posted by High Altitude View Post
Isn't every single sale to an individual person or family connected to household income?
Uh, no.
We bought our duplex side for $480K on an income of $80K.
No mortgage.
Rate this post positively Quick reply to this message
 
Old 09-14-2020, 01:38 PM
 
Location: Chicago 'burbs
195 posts, read 102,287 times
Reputation: 290
Quote:
Originally Posted by High Altitude View Post
What do you mean when you say "not connected to household income"?

Isn't every single sale to an individual person or family connected to household income?
there is a limit of how much a household can afford, unless there is unlimited people coming in

basically, people will be max out and have a choice of eat or pay mortage
Rate this post positively Quick reply to this message
 
Old 09-14-2020, 02:35 PM
 
2,763 posts, read 2,610,056 times
Reputation: 5322
Quote:
Originally Posted by davebarnes View Post
Uh, no.
We bought our duplex side for $480K on an income of $80K.
No mortgage.
True, income and/or current wealth.
Rate this post positively Quick reply to this message
 
Old 09-14-2020, 02:45 PM
 
2,763 posts, read 2,610,056 times
Reputation: 5322
Quote:
Originally Posted by Di3s3l_Pow3r View Post
there is a limit of how much a household can afford, unless there is unlimited people coming in

basically, people will be max out and have a choice of eat or pay mortage

Just about everyone has a limit and must make choices to live within their means.


If enough people, that are moving into the area, can’t afford to pay current prices, price will come down. We have not gotten there so prices will go up until that happens.
Rate this post positively Quick reply to this message
 
Old 09-14-2020, 04:21 PM
 
1,579 posts, read 1,131,257 times
Reputation: 1904
Quote:
Originally Posted by High Altitude View Post
Just about everyone has a limit and must make choices to live within their means.


If enough people, that are moving into the area, can’t afford to pay current prices, price will come down. We have not gotten there so prices will go up until that happens.
Yeah PPL still move to CA, NYC, Boston......Not sure of any places really maxed out.
Rate this post positively Quick reply to this message
 
Old 09-15-2020, 02:27 PM
 
Location: Denver
3,884 posts, read 7,198,109 times
Reputation: 5095
Denver is a maxed-out residential real estate market; there are more buyers than sellers. If homes in a maxed-out market are still primarily bought with traditional mortgages, there are only two variables in the equation, income and interest rate. If a traditional mortgage payment on the median home costs more than 30-40% of the median monthly income, then there's investor class speculation occurring in the mid-tier home market (I would assume almost all of us reading this are mid-tier). Covid economy notwithstanding, Denver's mid-tier housing prices do not appear to have speculation.

That said, "covid economy notwithstanding" is huge caveat. The eviction moratoriums have ended, but the effects of this will likely be contained to rentals and lower tier housing, and they are likely to get raked over the coals. Long term I predict a lower quality of maintenance and higher rent due to investor class consolidation of lower tier properties, and higher down payments for entry level housing. The amount of rent collectors who own mid-tier housing and live hand-to-mouth is most likely very small, as is the amount of middle class people in non-essential industries who don't qualify for mortgage assistance. Even if all those houses were to flood the market this fall, there would likely still be more buyers than houses, at "worst" a temporary dip in sale prices. The investors and owners will almost always have the assistance on their side. The Fed seems to have determined that hyperinflation is preferable to financial market correction.

Last edited by Westerner92; 09-15-2020 at 02:35 PM..
Rate this post positively Quick reply to this message
 
Old 09-15-2020, 02:55 PM
Status: "Looking forward to President Harris" (set 25 days ago)
 
Location: Berkeley, Denver, CO USA
15,638 posts, read 23,520,652 times
Reputation: 26875
Quote:
Originally Posted by Westerner92 View Post
If homes in a maxed-out market are still primarily bought with traditional mortgages, there are only two variables in the equation, income and interest rate.
No!
You are ignoring the size of the down payment.
Examples:
* retiring Boomers who sell old house and use some retirement savings
* people moving from more expensive areas—sell high, buy low in Denver

Last edited by Mike from back east; 09-15-2020 at 05:58 PM..
Rate this post positively Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Colorado > Denver
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top