Do Denver Home Prices Warrant A Bubble Watch? As home prices continue to rise throughout most
of the nation, sooner or later people begin to wonder whether we’ve crossed the
threshold dividing undervalued from overvalued. Pundit shorthand for “overvalued”
has gradually become almost synonymous with the far more fear-inducing
term, “Bubble.” As with the chewing gum and soap-blowing varieties, the
term can’t help but conjure up visions of the associated “Pop!”
The first findings are reassuring.
Although residential price gain percentages do rival those of the last decade’s
bubble, that’s deceptive. They started from a much higher perch. The decline
from 2005-2006 was steep enough that (aside from a few metro areas in
California and Texas), the fundamentals show that the current gains look a lot
more like a rebound than a bubble.
Trulia found that as of last month, national home
prices remain undervalued by 7%. During last decade’s bubble, prices
went as high as 39% overvalued. Their takeaway is that home prices remain
considerably lower than they were during the last bubble.
So bubble-watchers can rejoice or rebel,
but as far as this Denveragent is
concerned – Trulia has provided some very pleasant news. “Rebounds” bring about
visions of happy kids on trampolines (and rebounds don’t pop). The news is
excellent for instilling a positive national outlook, but more locally, if
you’re looking for the latest information about Castle
and activity, contact me for a no-cost, no-obligation consultation. By Jason Peck Jason Peck is part of the Carr Peck & Associates at Keller Williams.
He has been recognized locally and nationally as in expert in real estate.
Locally he is 6th in Denver Metro home sales out of 5,000 agents and has
been recognized by the Wall Street Journal and Real Trends as one of the top
selling agents in the country. He is co-author of the National Best
Selling Book, “The New Rise in Real Estate”. For more information feel free
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Author:Jason Peck Phone: 720-446-6301 Dated: June 18th 2013 Views: 1,711 About Jason: ...
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"We worked with Karen Venier for a relatively short time for a good reason: our home sold at full price within hours of hitting the market! While it’s true that the Denver housing market is “hot,” credit for the speed and ease of our transaction belongs to Karen. She was great to work with, giving us perfect advice about readying our home for sale and then expertly guiding us from offer to close. Along the way, we came to appreciate Karen for her skillful blend of professionalism and personal touches – like dropping off our favorite beverages during a particularly stressful time in our move or shoveling our driveway in subzero temps after we’d left the state (way beyond the call of duty!). Now that we’ve relocated to Wisconsin, we keep saying that we wish Karen could be our buyer’s agent here. Since that’s not possible, we’ll shout her name loudly to whoever might be looking for a home in the Denver area.
Thanks for the great work, Karen!