Denver vs. The Bubble
Among the questions I am most frequently asked is my opinion of the Housing Bubble and it's impact and implications on Denver and the rest of our state.
I don't think Colorado is going to experience the kind of problems the housing bubble presents to other parts of the country. Among the many reasons I feel this way is the fact that we already experienced a housing value decline in the late 1980's when our job market went through a rough period and jobs disappeared. Although it was painful at the time it allowed the housing market to let off some steam and keep it from attaining levels of double-digit growth over the past decade.
In fact, in the last five years Colorado home values have risen around 28% which is about half of the roughly 58% appreciation rate nationally. Prices more than doubled during this period in parts of Nevada, California, Arizona, and Florida. These are the areas that appear to be heading for some unpleasant 'corrections' in the next few years.
The bottom line is that, like most of the US, the Colorado real estate market will level out and home appreciation will slow down. But I don't see home appreciation declining any time soon in our market.
-Bill Burniece
Among the questions I am most frequently asked is my opinion of the Housing Bubble and it's impact and implications on Denver and the rest of our state.
I don't think Colorado is going to experience the kind of problems the housing bubble presents to other parts of the country. Among the many reasons I feel this way is the fact that we already experienced a housing value decline in the late 1980's when our job market went through a rough period and jobs disappeared. Although it was painful at the time it allowed the housing market to let off some steam and keep it from attaining levels of double-digit growth over the past decade.
In fact, in the last five years Colorado home values have risen around 28% which is about half of the roughly 58% appreciation rate nationally. Prices more than doubled during this period in parts of Nevada, California, Arizona, and Florida. These are the areas that appear to be heading for some unpleasant 'corrections' in the next few years.
The bottom line is that, like most of the US, the Colorado real estate market will level out and home appreciation will slow down. But I don't see home appreciation declining any time soon in our market.
-Bill Burniece
posted by Bill | 3:10 PM
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