Suspicions confirmed: A new report from CoreLogic, a national data analysis firm, found that homes in metro Denver are overvalued even as prices continue to rise. And one of the authors of that study predicts that this "price bubble" will keep growing this year.
More suspicions confirmed: "The acute shortage of inventory for sale and rising buyer demand because of record low mortgage rates has led to an acceleration in home price growth in recent months," says CoreLogic's chief economist. And then there's this: "New residents who have moved to Denver from elsewhere in the U.S....may have higher income and wealth than local residents."
Anyone looking for a home in Denver didn't need CoreLogic's report to explain the market, though. Just consider these comments left by readers on the Westword Facebook post of "Denver Homes Overvalued Even as Prices Keep Rising, Report Says." Says Michael:
Denver is a wonderful place to pay $895,000 for a $125,000 home.
Housing costs everywhere are too high right now, but Colorado/Denver’s prices are insane. When you can’t even buy a dilapidated shack that wouldn’t ever pass inspection and just needs to be bulldozed...for $350,000, there’s a big problem.
Denver is just collapsing in on itself. It's sad.
Calfornians, go home.
Can't afford to buy a house? Thank all of the...
Trustafarian hipster transplants.
Techno geek transplants.
House-rich transplants who sold overpriced homes in California, etc...and moved here. (Not all transplants are bad, just quite a few.)
And most of all, those greedy illegal AirB&B investors snatching up a ton of houses & renting them out illegally. (I'm cool with renting out a room, basement, guest house, etc...but pay your licensing, taxes, etc., and only do AirB&B if you actually live on-site.)
"Value" is whatever someone is willing to pay. As long as people keep buying then there is real value. My conclusion from this article is that people are paying (be it forced or willingly) a higher percentage of their income toward housing than they used to.
I work hard, save my money...and I'm never going to be able to buy a house in Denver.
A slight bright spot: The prices of condos aren't going up as fast as those of detached homes, according to CoreLogic. And although the company didn't get into the rental market, prices there are dropping.
What do you think of Denver's housing market? Post a comment or share your thoughts at email@example.com.
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