Denver Real Estate Discussion / Opinion Thread (NO Data Charts) (Lakewood: home equity, architectural)

[2bindenver]

Coloradoans love our holiday weekends. So the next best opportunity to buy a property is July 4th weekend.

Less competition means more opportunity.

[smihaila]

For a price of 20% above asking price? Thanks but no thanks.

[emm74]

Originally Posted by smihaila

For a price of 20% above asking price? Thanks but no thanks.

It's not like asking price is some objectively accurate number that a house is worth. It's just a number that the owner and their agent feel sounds reasonably accurate based on sales of similar houses in the area. The market is saying that the current value is higher, in large part because of scarcity. But that doesn't mean that at this particular time and place, the house isn't worth what (most often) multiple wannabe buyers offer to pay.

[smihaila]

Says who? A realtor? :-)
Well, I don't want to be one of those "wannabe buyers" in these current "market" conditions.

Sitting with cash in some highly liquid and safe investments, kind of having all I need to buy a North-American wooden barrack (funnily called a "house") without a bankster. But will NOT pull the trigger.

[lem316]

Originally Posted by smihaila

Says who? A realtor? :-)
Well, I don't want to be one of those "wannabe buyers" in these current "market" conditions.

Sitting with cash in some highly liquid and safe investments, kind of having all I need to buy a North-American wooden barrack (funnily called a "house") without a bankster. But will NOT pull the trigger.

Above asking offers have been the name of the game for a while in Denver - when we bought in 2020, when a friend bought in 2018, when another bought in 2017 etc.

Not that I disagree we might be seeing a peak - a bump in interest rates or another year of 10-15% appreciation might finally cool things off.

I also thought we were at a peak last year, and couldn't imagine people paying more per sq/ft etc than they were/we did, but here we are in 2021

[emm74]

Originally Posted by smihaila

Says who? A realtor? :-)
Well, I don't want to be one of those "wannabe buyers" in these current "market" conditions.

Sitting with cash in some highly liquid and safe investments, kind of having all I need to buy a North-American wooden barrack (funnily called a "house") without a bankster. But will NOT pull the trigger.

And who is it that sets the asking prices that you seem to think are more accurate?

Oh, right, a realtor.

But it's buyers who say what the market value is based on what they are willing to pay. You don't have to like it and you don't have to buy a house at a price you aren't willing to pay. That doesn't change the fact that if other buyers are willing to pay it, that's the current market value, period.

[Vision67]

Denver real estate: Median home price hits record, but could bidding wars be cooling?

But a 50% jump in inventory could provide relief to buyers going forward

https://www.denverpost.com/2021/07/0...-price-record/

"The median price of a single-family home sold touched $600,000 for the first time ever in June, meaning half of the homes sold above that price and half below. That was up 1.3% from May and 25% over the past year. The average price hit $728,385, also a record.

For condos and townhomes, the median sales price was unchanged from May at $380,000, and it is up 16.9% over the past year.

The 2,137 single-family homes available for sale at the end of June is nearly 60% higher than May’s depressed count, and the active inventory of condos and townhomes rose 33.3% month-over-month to 985. Combined, the Denver area experienced a 50.5% gain in its active inventory, a new record for a monthly increase and six-fold higher than the 5.9% gain averaged between May and June."

[Vision67]

Metro Denver’s housing market hits the brakes in July

Listings rose sharply, but sales dropped and monthly price gains went flat

https://www.denverpost.com/2021/08/0...ng-slows-july/

"Metro Denver’s housing market slowed in July, with closings down from June and the inventory of available homes remaining tight but rising at a record rate, according to the monthly Market Trends Report from the Denver Metro Association of Realtors.

Buyers closed on 5,820 homes and condos in metro Denver last month, down 12.3% from June’s count and 21.3% from July 2020. The inventory of residential properties available for sale at the end of July was 4,056, a nearly 30% increase from June.

“As the trends shift away from a hot summer market, the question at the forefront of everyone’s mind is ‘Are prices going to come crashing down?'” Andrew Abrams, chairman of the association’s market trends committee, said in comments accompanying the report.

The median price of a single-family home sold in July was $600,000, which matched June’s median price and reflects a 20% gain from last July. The average closing price was $699,795, down 3.5% from June but up 17.2% from a year earlier."

[Mike from back east]

Originally Posted by Vision67

Metro Denver’s housing market hits the brakes in July

Listings rose sharply, but sales dropped and monthly price gains went flat....

Exactly the way it happened in the red hot DC area market in August 2005. We had just moved out of there in June 2005, going to COLO SPGS. We stayed in touch with our realtor back in that area and she told that in August of 2005 the red hot market stopped on a dime, slammed shut.

It took another year or so for that to reach COLO SPGS but everything shut down in 2008 for the Great Recession.

What I've seen playing out for the past 2-3 years is the same thing I saw in the early 2000s when unneeded tax cuts dumped tons of money into the hands of people and companies that had no place to put it other than into the stock market and housing markets. I recall the bubbles in both markets and I surely recall those bubbles bursting into the Great Recession. IMO the tax cuts of 2017 is a full reply.

[2bindenver]

The market stopped on a dime, here in Denver twice, right after the massacre at Columbine High and right after 9/11.

I showed a real dog of a house yesterday priced at $400,000 (below market average) and it had 15 offers and 30 showings in one day.