Will Denver (and Denver metro) housing market impacted by sharp Oil and Gas meltdown? (insurance, houses)

[ts62860]

We heard the closures of some O&G companies around Denver - and what's your take?

Will the hot property market finally come to a halt?

[Vistaian]

Originally Posted by ts62860

We heard the closures of some O&G companies around Denver - and what's your take?

Will the hot property market finally come to a halt?

To a halt? No. Too much of the market is being fueled by the exploding cannabis industry.

[bluescreen73]

Originally Posted by Vistaian

To a halt? No. Too much of the market is being fueled by the exploding cannabis industry.

I'd be willing to bet that legal weed isn't even a blip on the radar of economic activity in Denver. The big players here are IT, telecommunications, healthcare, insurance/finance, and O&G. You could probably lump pot under the broader umbrella of tourism and get it to show up.

Industry Cluster Study | Metro Denver

[Vistaian]

Originally Posted by bluescreen73

I'd be willing to bet that legal weed isn't even a blip on the radar of economic activity in Denver. The big players here are IT, telecommunications, healthcare, insurance/finance, and O&G. You could probably lump pot under the broader umbrella of tourism and get it to show up.

Industry Cluster Study | Metro Denver

Except that a poster, who is a realtor, recently posted that at least 50% of his customers in the market for a smallish 2 bedroom house in the Denver metro is somehow related to cannabis.

Whenever I see a real world post like that from someone who doesn't have any stake in the game I give it more consideration than I do studies.

From kevin_in_Denver:

In my market niche, which is small 2bdrm houses, over 50% of the prospects I talk to are involved with marijuana somehow. They are desperate and the market is squeezing them. It's classic supply and demand.

[davidv]

The crash of the 1980s coincided with the crash in oil and gas. Since then Denver has diversified its economy so that no one business sector dominates the economy. Denver has the wherewithal to withstand the loss of nearly any of our main industries.

[denverian]

Gas is a buck a gallon more in Denver than when it hit the low last winter (cheapest I found was $1.59 in February or so). And I was just in California where I was paying around $3.75. It's going back up at this point, so doesn't appear to be a "crash".

[ayoitzrimz]

OP - wishful thinking ?

[brown_dog_us]

Vistain you need to re-read Kevin's post and key on the word "niche". Sure there are people that are moving here for weed, but it's a small amount and they are clustered at the lower end of the market.

[brown_dog_us]

Originally Posted by ts62860

We heard the closures of some O&G companies around Denver - and what's your take?

Will the hot property market finally come to a halt?

I think the problems in O&G will have a bigger impact on the national economy and from there could trickle down. Also, as mentioned above, it looks like oil is starting to rebound.

[jwiley]

Of course there are going to be repercussions from the oil and gas price drop throughout Denver and Northern Colorado, however there is so much pent up demand that it is not going to change much anytime soon. I personally know people that have been looking to buy a house for a year, and several others that have been looking for months, they have been saving for the bigger down payment and trying to find houses that they want and actually be able to get to appraise for a reasonable amount so they are not bringing 30% to close the deal. Those people may have a chance to buy a house now, but it is not going to drop the prices just yet. However if that tech bubble everybody is talking about pops before the oil and gas take off, Denver and the front range is in trouble.