Area of the metro where town homes and condos are in demand by buyers?

[2bindenver]

I was totally surprised today when looking at REcolorado.com - brought to you by Metrolist Inc. for a quick search for homes in Rock Creek - there is now a "walkability" rating on the house. When you click on the link, it takes you to a webpage that shows you where the services, shopping, etc. are.

How cool is that?

[steveindenver]

The same sized house built by KB would be $375,000 in Stapleton

I can't believe KB is still allowed to build homes and that people still buy them.

People buy townhomes near Illif & Buckley because they are a good value for their money.

When you factor in things like time spent commuting; required driving for essential services, the old gallon of milk argument, are these places really a bargain? Or has the "American Dream" gotten a bit out of whack with what is right somewhere along the way. Does everyone *need* to own a house? No. Do you really *need* a lawn of grass and 3+ bathrooms? Nope.

Exurban areas are capricious in there very nature because people don't factor the true costs of owning that American dream and tend to put the "value" before all else only to slowly realize that the concept of planned urban growth wherein people must pay more to live closer to services and jobs is only one more gas crisis away from planning itself.

To put it shortly, if selling a house is one of the requirements as the original poster has stated it is, I would stay as far away from that area as is financially possible.

Stapleton will probably be building out for the next decade or two. So supply will continue to grow in these areas with demand, keeping prices relatively in line.

I read in the paper last week about how their MP Forest City is in financial trouble (surprise) -- then recalled a conversation with someone who works on the project a while back and remembered they were no longer allowing builders to build spec. That area has held up much better than Denver so far but I wonder if it can continue to do so at the current price point as the economy slows even further?

On another Stapleton note, I checked out some properties coming up for auction. Funny thing here. The houses are all around 23rd and Spruce, facing the only low income property in the area. Original asking was 1.2+ -- and they are accepting no bids below 1.0 mill. Good luck to them I say. Nice *looking* houses with the wrong view and finishes in the 400-500k range.

[murof]

Originally Posted by movementarian

Interesting post and questions. I'd say don't focus exclusively on demand - SUPPLY is the other side that determines prices. Areas like Downtown/LoDo can put up condo towers if demand grows to a profitable point. Stapleton will probably be building out for the next decade or two. So supply will continue to grow in these areas with demand, keeping prices relatively in line.

From a strictly financial perspective, ideally, you'd want a place with some of these things:
- desirable/beautiful/well-located area
- a place where housing was entirely built out
- a place where new housing can't expand outward because of geographically limitations
- a place that had such tight restrictions that existing buildings couldn't be demolished to build condo towers

That's part of the reason why beachfront homes in places like Palm Beach or Malibu are so expensive - the supply of beachfront homes is limited by nature and policy.

So of the three areas you mention, I'd say Boulder is the best choice. They have such strict growth and teardown/rebuild policies. Demand also always seems high because so many out-of-staters view it as some sort of Shangri La.

Then you just have to find a well-located condo that meets your needs, is $150k, and is not already overpriced for $150k.

I love creative insight to real estate, thanks. You made some goodobservations.SteveinDenver, I agree with your assessment of KB Homes, whydo people continue to give their hard earned money for thesejunk houses, they look good when they're new, but seem to quicklydeteriorate. Any idea about what period or years were the best for homeconstruction quality in the Denver area, custom homes notwithstanding?

[Jerry Bckr]

One thing to keep in mind for your purchase is that most every town home and condo will have an HOA fee, that you have to factor in for qualifying. If you're top price is $150K and the HOA fee is $140, it would be like paying and trying to qualiy for a purchase price of $176K. How did I figure that? Well, the cost of borrowing $1,000 for 30 years at 5.5% is $5.68 per month. Take the HOA figure of $150 and divide it by $5.58 and that will give you the effectual rate of what you're paying based on your monthly payment. In a single family home payment lenders use the acronym of PITI, which stands for principal, interest, taxes, and insurance. This total of those cost are what the lender uses to work your ratios. For multi-family it's PIT & HOA. There is no insurance calculated into the formula because the HOA dues covers that, you just need contents and that is calculated into arriving at your qualifying ratios. Bottom line is take the HOA cost very seriously.

[MMichelle]

If you are interested in Colorado Springs you would have a good selection and could get something very nice.
It's a great time to buy!