Im bowing out

[Bigjay73]

Of looking for a home. GF and I have been looking for something a little bigger, with a 2 car garage, and the market is ridiculously overpriced here in Colorado. We've gone after 2 properties, one went 50k over asking from a sight unseen cash offer, the other went 22% over asking, which is about 130k!!! I'm not into feeding frenzies and our place is paid for. Anyone else just riding out the storm expecting some sort of a correction? Unless employers raise wages 15- 20% to every working person in Colorado, I don't see the current prices being sustainable, cash rich buyers are not an infinite resource.

 

[winmag]

Unfortunately it'll be sustainable for as long as folks can sell their house in an even more inflated market like California, extracting a bunch of equity, and use that cash to buy a house in CO.

 

[rwc101]

I don't blame you. A lot of my Boulder based colleagues are using their COVID work from home arrangements to leverage full or partial WFH deals where they can move off the front range.

 

[TOGIE]

we were lucky to get in on a new build for a first house.

we keep saying "oh yeah in 5 years we'll be able to upgrade in size once we have kids and need more room"

even with the equity we'll have and the likely continued market rise between now and then, in the back of my head i'm convinced we'll be in this little house for the next 20 years...

 

[MThuntr]

Friend of a friend listed a very mediocre house at a price I thought was ridiculous in Stevensville...got 12 offers within minutes of listing. 1 was a conventional loan for $45k over asking and another was $15k cash over asking.

Here in Dillon a friend bought a house in like 2018 for $160k fast forward to 2020 she needed to move and house sells for $225 and within 15 months the same house sold for $325. It is now for rent for $1600/month

Personally over paid for my house but since I was renting and needed to get in front of the boom. My house's "value" is up about $50k since May.

 

[ignorethefringes]

I get it, but there is still so much cash in the market from people selling in the bigger cities. And those houses in FL, CA, WA, etc. are still selling super fast as well. When those markets slow, the inflow of cash into other areas MIGHT slow down a bit later. I'm still telling people, who are currently renting, that they'll be better off buying a house right now so long as they don't buy more than they can afford. Oftentimes the mortgage is still lower than the rent in a lot of markets.

 

[elkduds]

Even the catastrophic bubble-burst of 2008 couldn't hold CO home prices down. 3-4 years later depending on location, prices were above "08 levels. Housing inflation here is relentless, it has even spilled into backwaters like Canon City/Florence. Check out the home hyperinflation in outlying WFH destination burgs like Buena Vista and Salida.

 

[JAG]

You could always buy remote land with timber, get a sawmill and live off the grid: https://www.sawmilltrader.com/.

 

[COEngineer]

On the flip side, I think Detroit is still offering to pay people to take ownership of houses in their suburbs. You could 'buy' a whole city block there for the price of a single family home in CO. Supply/Demand

 

[SO7mm]

Unfortunately it'll be sustainable for as long as folks can sell their house in an even more inflated market like California, extracting a bunch of equity, and use that cash to buy a house in CO.

People keep leaving the bay area but the prices here are showing no signs of slowing. Some close friends sold their house recently and were able to buy a brand new house between Denver and Fort Collins and a condo for their kids in the outskirts of Denver.

 

[Nameless Range]

These stories are insane and depressing. My mind drifts to my kids, and how the hell Montanans just starting out will be able to compete. They won't, and it is getting to a point that whether one is starting out, or well along their way, they won't.

 

[rustednuts]

I bought my first home this year. I don't see prices dropping. Will they increase at the same rate as 2020 no, but they will still keep going up. There is a massive inventory shortage which will continue to drive prices up even as rates go up. With rates going up it may end up costing more in the future even if home prices are steady.

Don't be foolish and waive the inspection, pay appraisal differences. There are deals out there, but you have to be ready to move.

 

[Deleted member 28227]

I sold a property for my aunt last summer. it's insane it went for 43% over the county appraisal 6months earlier,.

 

[TOGIE]

we signed our contract on our new build at the end of march 2021. we closed middle of december.

base price for the house when we signed last march was $484,950. now of course that's before you have to choose all your features, lighting, cabinets, floors, paint, fixtures, etc etc. so the real price of the house is ultimately much much higher.

just checked the base price for our home right now from the builders website: $549,950

65k base price increase in like 10 months.

obviously that doesn't necessarily equate to equity we theoretically have in the house after barely 2 months of ownership, but holy shit.

 

[winmag]

I could sell my 1970's built, minimally updated house sitting on 0.10 acres in the Denver area and make enough off the sale to buy a 4000 square foot house on 20+ acres in the southeast. Bought this house 5 years ago and it has appreciated +90% since then. It's just stupid.

 

[SAJ-99]

Of looking for a home. GF and I have been looking for something a little bigger, with a 2 car garage, and the market is ridiculously overpriced here in Colorado. We've gone after 2 properties, one went 50k over asking from a sight unseen cash offer, the other went 22% over asking, which is about 130k!!! I'm not into feeding frenzies and our place is paid for. Anyone else just riding out the storm expecting some sort of a correction? Unless employers raise wages 15- 20% to every working person in Colorado, I don't see the current prices being sustainable, cash rich buyers are not an infinite resource.

Don't quit yet. Have a loan approval from the bank ready, know what you want, and be ready to make a decision fast. More inventory will hit the market in April and May as is the seasonal trend.

Problem is people living longer and staying in their houses. What we need is a good pandemic to......oh, forget it.

 

[Irishman]

Of looking for a home. GF and I have been looking for something a little bigger, with a 2 car garage, and the market is ridiculously overpriced here in Colorado. We've gone after 2 properties, one went 50k over asking from a sight unseen cash offer, the other went 22% over asking, which is about 130k!!! I'm not into feeding frenzies and our place is paid for. Anyone else just riding out the storm expecting some sort of a correction? Unless employers raise wages 15- 20% to every working person in Colorado, I don't see the current prices being sustainable, cash rich buyers are not an infinite resource.

I managed sawmills for 20 years, and had to survive through all the downturns in the housing market. There are always cycles, and homebuilding will slow down. Personally, I feel like this cycle will start running out of steam this year, and then really tank by next year. Now is not a good time to buy a house, in my opinion.

 

[BigHornRam]

I've been in residential construction my entire career. This isn't going to end well.

 

[Nick87]

We have all but given up too, it'll happen... I think. I'll be curious to see how rite hikes will affect things. Everybody keeps saying that there will be no correction which is exactly what they said before the last one. Just my gut feeling.

 

[TheGrayRider]

I've been in residential construction my entire career. This isn't going to end well.

Amen, brother!