Denver Real Estate Discussion / Opinion Thread (NO Data Charts) (Arvada: calculated, food)

[davebarnes]

Originally Posted by Mike from back east

People don't want shared walls

Not always true.
Duplexes in my neighborhood sell for $925K per side.
Typical DoM is 2 weeks.

[nebloke]

Originally Posted by bluescreen73

You obviously cared enough to take yet another dump on an area you haven't lived in for 30+ years. FWIW, not everyone finds the Bos-Wash corridor appealing, either.

I'm not taking a dump on it for the sake of taking a dump on it, I just don't understand the massive appeal and influx of people over the past 30+ years. It's not a horrible place by any means but I think that a lot of people think that it's something that it isn't. Colorado is an awesome state and I love the mountains, just not a big fan of Denver. I like Ft Collins, Boulder and Colorado Springs a lot more than I do Denver and if I was going to live on the front range it would be in one of those places although the new housing stock in those places isn't much different. I haven't lived there in over 30 years but I've been there at least every other year since I left and we now have a daughter in school there so we are now there even more. It always makes me sad to see how overrun the place has become and I miss the Colorado of my youth.

[2bindenver]

Bubble? With so little inventory, and buyers wanting to move to a “better” location. Brokers are sending letter to expired sellers from 2-3 years ago.

It’s brutal to be a buyer under $600,000 and it’s fat cat city for the sellers.

[katharsis]

Originally Posted by 2bindenver

Bubble? With so little inventory, and buyers wanting to move to a “better” location. Brokers are sending letter to expired sellers from 2-3 years ago.

It’s brutal to be a buyer under $600,000 and it’s fat city for the sellers.

Yep. Sold our 1988 Littleton home in July for $430k ($5k over list) in two days. 40 showings, four offers.

[High Altitude]

Originally Posted by sammy87

This sums it up for me. I work remote most of the time now and dont have a central office so I am going to see if I can get approval to move soemwhere else.

I dont think its a bubble though. The COL is still low vs the coasts and a very strong economy here. It will be healthy for a long time.

I agree, the RE market in CO is still under valued some. People like to still think in terms of everybody needs to buy a house, prices are too high for so many people so it just has to come down, but that is no longer going to be the norm. The people who own and live in SFH around major metro areas are going to be the exception.

As the population continues to rise year after year, a smaller percentage of the population will be living in these areas, hence, price is just going to keep going up. Everyone will have to keep taking a step down. Billionaires squeezing out the millionaires, millionaires squeezing out the execs, execs squeezing out management, management squeezing out highly skilled white and blue collar workers etc.....

People starting out who want to own a SFH, will have to have a much different expectation on where they can live.

[davebarnes]

Interesting read
https://www.point2homes.com/news/us-...ownership.html
The Expectations vs. Reality Gap: Millennials Want to Buy a Home within a Year, but Saving Takes up to 10 Years

[daprara]

Denver is an island; tell me better things about SLC or Albuquerque. Maybe Phoenix?

-Denver had more going for it back around 2014 when other echonomies were flat. Now Denver is just expensive 4what you get.
-mute point; the whole planet is got the covid and cant get up, be happy, stay at home in washPark and read the NYT

[Gaylord_Focker]

Originally Posted by daprara

Denver is an island; tell me better things about SLC or Albuquerque. Maybe Phoenix?

-Denver had more going for it back around 2014 when other echonomies were flat. Now Denver is just expensive 4what you get.
-mute point; the whole planet is got the covid and cant get up, be happy, stay at home in washPark and read the NYT

SLC to me is much slower than Denver, but it is booming. A lot of tech HQs are located there. LDS runs that state, even my LDS buddies would say as much. COL is probably a bit lower than Denver for now.

Phoenix - hot and inexpensive as far as I know? Great Mexican food

Albuquerque - seems boring to me.

[Vision67]

Metro Denver housing market running on fumes

Inventory is so low that it is crimping sales and leaving buyers with few options

https://www.denverpost.com/2020/12/0...ning-on-fumes/

"Metro Denver’s housing market showed signs of running out of gas and stalling last month, with sales dropping sharply and higher-priced homes dominating a dwindling supply of available listings, according to a report Thursday from the Denver Metro Association of Realtors.

The number of residential properties available for sale in metro Denver dropped to 3,415 at the end of last month, the lowest ever recorded for a November. The inventory is down by more than half over the year and just a fraction of the 14,488 listings averaged in November since 1985.

“For the single-family detached market, we only had 1,755 houses available for sale, representing 0.51 months of inventory. If no houses were put on the market for two weeks, in theory, there would be nothing left to sell,” Andrew Abrams, chair of the DMAR market trends committee and a Denver real estate agent, said in comments accompanying the report.

Historically, the supply of properties available for sale drops 10% between October and November on average. But this year, the inventory dropped by 29.2%, the largest decline on record. Almost a third of the single-family homes available for buyers in metro Denver are priced above $1 million, an unprecedented share.

A lack of “affordable” inventory, rather than tighter restrictions because of a resurgence of COVID-19 cases, appears to have dragged down sales last month. The number of homes and condos that closed last month fell 25.5% to 4,820, but remains up by 11.9% on the year. Single-family home closings were down 27.7%, while condo and townhome closings were off 19.5%.

One good note in the report for buyers — prices gains leveled off last month. The median closing price of a single-family home was $513,000 in November, down 0.39% from October, but still up 14% over the past year. The median price for an attached home sold was $335,000, down 0.59% month-over-month, but up 7.4% over the year.

“Despite persistently low mortgage rates, home sales have hit a wall. While homebuyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase. Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment,” said Sam Khater, chief economist at Freddie Mac, in a release on rates.

Price gains are setting the stage for problems in the future when rates eventually rise. NerdWallet, in a study of 50 large metro areas, ranked Denver as the 11th least affordable housing market for first-time buyers. The median list price of homes in the third quarter was 5.9 times the median income of buyers in the 25 to 44 age range, comparable to Seattle.

Financial advisers typically recommend not stretching beyond three times household income when it comes to buying that first home, but that is becoming much more difficult to achieve in cities like Denver."

[ShampooBanana]

Originally Posted by Gaylord_Focker

SLC to me is much slower than Denver, but it is booming. A lot of tech HQs are located there. LDS runs that state, even my LDS buddies would say as much. COL is probably a bit lower than Denver for now.

Phoenix - hot and inexpensive as far as I know? Great Mexican food

Albuquerque - seems boring to me.

Agree on SLC. I have a few friends/associates who live there and they would agree with your take on it.

Phoenix - Booming market, huge growth, not enough homes being built to meet demand = fast rising home prices. It's still affordable compared to Denver but the gap is closing and if it keeps up might be at the same level in 5 years.

ABQ - A lot smaller than those others. Definitely the most affordable, but that's for a reason (not as nice a city as the others). However, it's starting to become a place people for those more expensive markets are looking at to retire or first time buyers to be able to buy a home, so prices are rising. It does offer a unique culture.