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    Are we in a Real Estate Bubble in Denver?


    With record appreciation and low-interest rates, business is booming. Anyone that can remember 2007 is quick to ask the following question:

    Are we in a Real Estate bubble in Denver?

    Short Answer: No

    Long Answer: See Below

    The largest differences between the Real Estate implosion of 2007 and 2016 are lending and the loans that have been written since then.

    In 2005 you could:

    – Get a loan for more than the appraised value of a home
    – Get 100% financing and buy a home with no money invested.
    – Get a loan by telling a lender what you thought you would make even if you were 100% commission and just started a new job. I did this. It worked out fine. I made the money I said I would and refinanced into a better loan before my Adjustable Rate Loan adjusted. The lender was not required to and did not verify income.

    Most adjustable rate loans offered adjusted after 1 to 10 years. As a result, the vast majority of all the high speculation, low equity loans that became unaffordable are now gone. Homeowners have since refinanced, sold or unfortunately lost their home as loans adjusted and rates dropped.

    Denver is expensive if you are referencing home prices here from four years ago. If you are moving to Colorado from either coast, we are affordable. This plus low unemployment is what is causing people to move to Denver.

    Don’t believe me? Fair enough. I have a real estate education that I finished in 6 weeks and BS in Marketing. 😉

    Here are a few articles that might help answer some of your questions:


    Just Google “Denver’s Unemployment Rate”


    The Denver Business Journal is great source to follow if this is your thing. Here is a recent article about Denver Employment Levels:


    Below is a link to April’s Market Report from Denver’s MLS. Check out 9% average sales price change from 2015 to 2016.



    The market is the market and your house is your house. For a professional assessment of your home’s value as well as a review of what you should do to maximize your value, contact me for an appointment.

    – Pete


    main photo credit: Photo credit: pandajenn1234 via Foter.com / CC BY

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