Bidding war on houses

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Originally Posted by Grant H.

I actually think it will last longer than most. The economy in CO is strong, we have a large influx of people every year, and it's going to continue to be busy.

My brother is in the price range you're talking about. He's a principal software engineer for a technology company here in CO, and his bank is telling him he can be approved for a lot more than he's willing to spend. He, however, is not looking at subdivision houses for $500k. He's looking for minimum 2 acres, and a house. He wants to stay here for a list of reason, much the same as mine.

Family/Friends
Current Job
Activities - we're spoiled with Ski/Snowboard country (others here too, but that's the big one that is geography based)


For me, I've been all over the country and world, and I haven't found a better place to live yet (current political climate, and likely worsening climate, not withstanding).

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I used to think a crash was coming soon, but I don't anymore, for the reasons you listed.

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Originally Posted by foxtrot

Genuinely concerned of another crash timed to political cycles here (late 2020 or late 2024).

I've got family that wants to invest and flip houses on the east slope... can't talk them out of it. "2008 crash happened for specific reasons, it won't happen again" [facepalm]

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Tell them that unless they have an angel investor and connections to snag properties before they even hit the market, then they missed the boat by about 20 years.

Greed....
Repetitive....
Doing the exact same thing (over spend on a house on impulse on 2006) over and over again (over spend on a house on impulse on 2016), expecting different result.

https://youtu.be/LtFyP0qy9XU?t=1m16s

I recently had to deal with this. I got VERY lucky and found a house where the seller took my offer at asking price. It took me 7 months of battling with sellers to finally land this house. Every single one of my offers which was rejected were because of 2 things: 1. An investor came in with cash and offered to take the house "as is" with no inspection, 2. People were offering 20K+ over what I was offering - and I was generally going 10-15K over asking price on a lot of the houses I was interested in. I am very blessed to have the lender & realtor that I have. I've heard stories of people battling with getting under contract for over a year.

We moved here in 2005 and I told my wife it wasn't a housing market, it was a suicide pact. We rented for two years and got a house on the downswing, not the bottom- but at least they were still writing loans.

Denver is broken. The value equation is all jacked up. The problem is that most of us here are fiscally sound and conservative while a lot of other people are willing to take funky loans and over extend themselves. Add in CA people fleeing there and bringing buckets of cash. You end up with a warped market. You might not have the same financial system risk as in 2008, but that doesn't mean there isn't a bubble in housing. When people say things like they can't afford their parents house, or they can't afford the house they live in- that is a screaming, red-flag clue that something is amiss.

I consider moving to CO as a mistake. The cost of living, the traffic and the Progressive stupidity far out weigh low humidity. Mountains? F'ing traffic and sky high prices.

Colorado is broken and Denver is going to be a failed state once all this settles out. Only middle-class and higher people move here- that is the nature of moving for jobs and growth. When we start getting the poor and indigent filling their slots, this will be another CA-style cess pool.

https://www.denverpost.com/2018/05/0...omicides-2018/

Glad to see that Denver's 15 round magazine confiscation is working so well....

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Originally Posted by FromMyColdDeadHand

Glad to see that Denver's 15 round magazine confiscation is working so well....

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Interesting, nobody came to confiscate my 15 round mags, they didn't even confiscate my 30 round mags.

I know 2 people who were looking at purchasing via conventional financing. Both were beat out of houses by cash deals substantially over the asking price.
Pot money.
People in the dope industry can't put their cash in banks, the Fed wont let them. Invest it in real estate, let it sit 2 years then sell and you now have legal cash.
Money laundering 101.

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Originally Posted by BPTactical

I know 2 people who were looking at purchasing via conventional financing. Both were beat out of houses by cash deals substantially over the asking price.
Pot money.
People in the dope industry can't put their cash in banks, the Fed wont let them. Invest it in real estate, let it sit 2 years then sell and you now have legal cash.
Money laundering 101.

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^^^THIS! "Rent money" is also much easier to get into the bank.

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Originally Posted by foxtrot

Genuinely concerned of another crash timed to political cycles here (late 2020 or late 2024).

I've got family that wants to invest and flip houses on the east slope... can't talk them out of it. "2008 crash happened for specific reasons, it won't happen again" [facepalm]

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I actually agree with them, that the housing market won't fail in the same way again (at least not soon).

The problem is that the EXACT same problem that occurred in 2008 for houses, is poised to occur in commercial buildings. The real downside to this is that instead of the loan amounts being hundreds of thousands, it's millions per.

Even if the real estate market tanks nationwide, like it did in 2008, Colorado will not see the same level of severity that most of the nation will. We are incredibly insulated here due to the growth rate and influx of residents. It's the areas on the other end of the spectrum, that are stagnant or seeing their populations reduce, that will feel the pain. Even if prices dropped 20-25% in many cities, we'd probably be down nearer to 5-8%...