Real Estate Market. Thoughts?

[Irving]

Unfortunately, so many people are moving to Denver, and it's still so expensive to live here, that the market as far away as Cheyenne is still increasing. I was talking to a guy who bought a place in Cheyenne two weeks ago. It's 1,300 sq/ft house (plus finished basement for a total of 2,600 sq/ft) on 6 acres for $217,000. Pretty sure my house is worth that right now, but as usual, I'm a bit behind the curve and not ready to make that jump.

[kawiracer14]

Went to some open houses this weekend and one of the Realtors said that the last two months have been extremely slow and people are pricing their houses way too high so they aren't selling or the aren't appraising anywhere near the selling cost so people end up not buying.

[Dave_L]

That's what I've heard, Kawi. Things are slowing down a little and houses are sitting for 30 days on average compared to what, 24 hours? Someone I know in the real estate side of things said they're anticipating a "big correction" next quarter, whatever that means.

[Sawin]

That's what I've heard, Kawi. Things are slowing down a little and houses are sitting for 30 days on average compared to what, 24 hours? Someone I know in the real estate side of things said they're anticipating a "big correction" next quarter, whatever that means.

I agree things appear to have plateaued and I hope they may even begin to go down this winter... If CA and other states pass their equivalent of Amendment 64/MJ laws, I believe there will almost certainly be a decline in demand in CO as some people "go home"... come March next year, my wife and I will begin seriously looking again, but not before then.

[Irving]

I also hope many other states legalize.

[kawiracer14]

I think we are all hoping for legalization so people will leave or at least stop coming. If Mass passes that may keep some of the East Coasters over there.

I don't see prices going down much in the Denver area but one can hope. My wife and I are still a ways from having enough cash for 20% down.

[Irving]

If it's your first home, you rarely need to come up with 20% down. I think it's only 3%.

[kawiracer14]

If it's your first home, you rarely need to come up with 20% down. I think it's only 3%.

Yeah we certainly don't need to put 20% down, but I would rather not pay PMI or a huge mortgage payment every month.

[CS1983]

VA loan yet to be used here.

[Irving]

I hear you on that, PMI sucks. We bought our place in 2012 with a first time home buyer program and I was able to refinance and get out from under PMI by 2015. It really helped that I paid more than the minimum and the housing market shot up right after we bought though. Just more food for thought.