20% of Denver market house sales don't go through (Colorado Springs, Pueblo: credit, job market)

[MN_Ski]

I still believe something significant needs to happen for there to be a bubble here. 100,000 people are coming in every year, and the job market is going along very strong. The only way something will pop is if suddenly everyone loses their job, or the prices finally level out, people panic, and then try to cash out on their investment all at once, creating a surge of inventory.

[headingtoDenver]

Originally Posted by MN_Ski

I still believe something significant needs to happen for there to be a bubble here. 100,000 people are coming in every year, and the job market is going along very strong. The only way something will pop is if suddenly everyone loses their job, or the prices finally level out, people panic, and then try to cash out on their investment all at once, creating a surge of inventory.

My thought is that even if people panic and everyone tries to sell all at once, prices 'might' drop slightly, but with the amount of buyers in the area and the amount of people flocking to the Denver area daily, I don't see that drop lasting all that long.


I've said it before. I think the only people claiming there is a bubble are the ones who can't afford to get into the housing game. If I were just now moving into the area, I would have a hard time finding a house that I would truly love. That doesn't mean there is a bubble. It just means I cannot afford to live in the area I want. I'm not going to move to Manhattan and then complain that there is a housing bubble because I cannot afford to live across the street from Central Park.

[MN_Ski]

^ Yeah I agree. Though it is understandable why people feel that way. It's not like these homes have been slowly growing year after year, we are talking $100-150,000 increases over a couple years. And since wages have not kept up, there has to be some sort of adjustment. Even if that means prices only go down 5-10% and it just makes it easier to buy without the bidding.

Personally, I think I am going to wait a year or two before I try to buy. I don't expect anything major price reduction, but I am hoping that it just becomes easier. Even if at that time I am paying $350k for a 650SqFt box in Lakewood...I just don't want to deal with the crazy bidding.

I'm not in a position to put down 20%, so my plan is to buy with a lower down payment, and then have a room mate until I pay off the PMI.

Just out of curiosity...does claiming you have a roommate help with getting approved for a loan? My income is only 75K, I only have about 7K saved, and can put away around 4-5K a year. According to a lot of sites, it looks like I can only qualify for a loan of 250-275K. If I say I will be living with someone who would contribute 800-1000 a month, would that help me at all? I can afford a monthly payment around $1,750.

[headingtoDenver]

Originally Posted by MN_Ski

^ Yeah I agree. Though it is understandable why people feel that way. It's not like these homes have been slowly growing year after year, we are talking $100-150,000 increases over a couple years. And since wages have not kept up, there has to be some sort of adjustment. Even if that means prices only go down 5-10% and it just makes it easier to buy without the bidding.

Personally, I think I am going to wait a year or two before I try to buy. I don't expect anything major price reduction, but I am hoping that it just becomes easier. Even if at that time I am paying $350k for a 650SqFt box in Lakewood...I just don't want to deal with the crazy bidding.

I'm not in a position to put down 20%, so my plan is to buy with a lower down payment, and then have a room mate until I pay off the PMI.

Just out of curiosity...does claiming you have a roommate help with getting approved for a loan? My income is only 75K, I only have about 7K saved, and can put away around 4-5K a year. According to a lot of sites, it looks like I can only qualify for a loan of 250-275K. If I say I will be living with someone who would contribute 800-1000 a month, would that help me at all? I can afford a monthly payment around $1,750.

I don't think saying you will have a roommate will help at all for the simple fact, they will not be on the loan and if I was a loan processor, my first thought would be, 'what about the times where you do not have someone living with you. Will you be able to afford your mortgage payment without a renter'.

[MN_Ski]

Yeah that what I figured...I guess that is what sucks about buying as single.

My SO was able to get a VA loan for 300K on a duplex, with no down payment, making less than me. He was able to rent out one of the units for $1,100, making his mortgage payment only $600. Ugh, so jealous.

[headingtoDenver]

Originally Posted by MN_Ski

Yeah that what I figured...I guess that is what sucks about buying as single.

My SO was able to get a VA loan for 300K on a duplex, with no down payment, making less than me. He was able to rent out one of the units for $1,100, making his mortgage payment only $600. Ugh, so jealous.

Just remember what he/she had to go through to qualify for that VA loan.

[Mach50]

I'm selling my house in Congress Park so I will keep you guys posted on what I run into.

The market is just too crazy not to cash out and I live in the #1 rated neighborhood. Someone is about to get PAID!

[davebarnes]

Price it $10K below the market.
Wait for the offers to roll in. Wait about 20 minutes.

[Mach50]

Originally Posted by davebarnes

Price it $10K below the market.
Wait for the offers to roll in. Wait about 20 minutes.

That's exactly what I am doing DB.

[davebarnes]

Originally Posted by Mach50

That's exactly what I am doing DB.

Do we get the address so we can provide " constructive criticism "?