Real Estate Market. Thoughts?

[MrPrena]

I guess I can answer for the so called "local economy."

Pot....

[Grant H.]

I hear you. I do have to say though the first indicator for me that there is a bubble is when k hear so many people saying "there is no bubble." CO has a lot going for it but I saw this first hand back in CA. I sill have property there. The reality is we are by my definition in a bubble. That is, when real estate costs significantly outpace wage growth. In the early 1980s-2000 it took an average 23% of a CO residents income to pay for housing. Now it takes 35%. I have no doubt we are In a bubble. That is an unsustainable situation that will eventually reach equilibrium one way or another.

I don't necessarily disagree that we are in a "bubble", but I don't believe we will see it burst like we did in 2008. Not without a global economy collapse.

I was sincerely concerned that we were just waiting for the commercial real estate bubble of bad loans to burst, until the weed market EXPLODED! Now I don't think we will see the same bubble burst that occurred in 2008 for the residential market. They are so willing to pay high prices for places to grow, that the commercial real estate market is booming now. Several people that I know are looking for industrial space, and the prices they are being asked to pay to compete with the weed growers are unbelievable.

[Great-Kazoo]

I guess I can answer for the so called "local economy."

Pot....

To a point, yes. However the number of homes being built, far outpaces the number of dispensary's, grow operations etc.
I know O&G is barely staying afloat. the smaller companies are either hanging on by a thread or closing shop.

Drove around today looking for building sites. A good portion of places called said they were"tendering" offers. WTF, it's land not a sothbey's auction.

Anyway. "We've" seen it before, this rise in demand outpacing supply. To me that's a bubble.

[Madeinhb]

Exactly what is, The Strength of the Local Economy?

My cousin and I were discussing this today.
How the hell does someone relocating afford rent, let alone a house? I doubt every business in CO is paying $15 - 30 hourly. I also wonder how the hell someone can put down as much as our house cost 20+ years ago. AND afford a $1500 - 2500 monthly mortgage.

How do you new[er] home buyers do it? Granted there's the east coast, sold their home for $3-500K buyer, but everyone? We're perplexed how people are moving in to HOMES FROM THE MID $200'S Horton builders dream.

As more people move here, it drives up salaries. Companies can pay less but they will get crappy employees. The people who know they have the skills and all that- can ask for more.

[DFBrews]

It really sucks for people like me. Been busting my ass off for over a decade ( I'm 29) wasn't super smart with my money in my younger days and it was not nice to my credit score I but have made a complete turn around in the last 4 years
And I am now in a decent position to buy. I Can afford 1200 a month in mortgage quite easily have 10% down and have less than 12k in debt to my name 9k is student loans no credit card debt and a car payment
there is squat within 20 miles of where i work for under 250k
if there is it needs so much work it's unlivable or is gone within a day for an over asking price CASH offer.

[Irving]

It really sucks for people like me. Been busting my ass off for over a decade ( I'm 29) wasn't super smart with my money in my younger days and it was not nice to my credit score I but have made a complete turn around in the last 4 years
And I am now in a decent position to buy. I Can afford 1200 a month in mortgage quite easily have 10% down and have less than 12k in debt to my name 9k is student loans no credit card debt and a car payment
there is squat within 20 miles of where i work for under 250k
if there is it needs so much work it's unlivable or is gone within a day for an over asking price CASH offer.

Zillow thinks my house is worth $220k. Houses that have been remodeled go for around that in my neighborhood.

[WETWRKS]

Zillow thinks my house is worth $220k. Houses that have been remodeled go for around that in my neighborhood.

Zillow is hit and miss with their pricing. They are ok to get a general guesstimate but almost never truly accurate.

[Irving]

Zillow is hit and miss with their pricing. They are ok to get a general guesstimate but almost never truly accurate.

They aren't accurate for my house because mine is not updated. Houses that are updated in the hood sell for about what Zillow says everything is worth.

[DireWolf]

As more people move here, it drives up salaries. Companies can pay less but they will get crappy employees. The people who know they have the skills and all that- can ask for more.

I don't think this is necessarily the case for many industries (companies willing to pay more) unless you're open to relocate....I have worked for several orgs that actually applied a negative weighting for CO residents - for example, the last company I worked for applied a -20% weight based on region (e.g. same position/level for east/west coast residents paid an avg. 20% higher than for CO residents - within the same company)....

Also, I get recruiters calling/emailing all the time, and the vast majority of CO based companies/positions still seem to be paying way lower than equivalent ones in GA, NY, CA, WA, TX, NC, FL, etc. It almost feels like price-fixing, and I heard somewhere (can't confirm accuracy of this) that many local orgs stick to compensation "guidelines" from MSEC (mountain states employers council), and rarely - if ever - deviate from that....

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[Madeinhb]

I don't think this is necessarily the case for many industries (companies willing to pay more) unless you're open to relocate....I have worked for several orgs that actually applied a negative weighting for CO residents - for example, the last company I worked for applied a -20% weight based on region (e.g. same position/level for east/west coast residents paid an avg. 20% higher than for CO residents - within the same company)....

Also, I get recruiters calling/emailing all the time, and the vast majority of CO based companies/positions still seem to be paying way lower than equivalent ones in GA, NY, CA, WA, TX, NC, FL, etc. It almost feels like price-fixing, and I heard somewhere (can't confirm accuracy of this) that many local orgs stick to compensation "guidelines" from MSEC (mountain states employers council), and rarely - if ever - deviate from that....

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Well CO will get paid less then most of those. CA and NY are still way more expensive than here. I get paid more here in CO than I did in CA. In CA, there are so many people, that it is extremely hard to negotiate salary. When I decided to move here - it was much easier. Now granted, not all companies are the same. I was just talking in general terms.