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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Bill/WA who wrote (8950)	2/17/2003 12:13:45 PM
From: edward miller	Read Replies (1) \| Respond to of 306849

I don't know about that specific area, but I just moved from Boulder last year. I firmly believe that the market is presently extremely overpriced due to tech and .com investments that are now worthless. Of course, that is just my opinion. Just for curiosity I still track the houses for sale in the area because I got the feeling that housing prices are a house of cards at this time. In other words I feel that getting my house sold and moving on - even though I reduced the price drastically - was a smart move. I still see significant price reductions on properties. More important is the fact that a lot of houses are still on the market after 6-10 months. I also suspect that many houses removed from listing are being pulled after not selling. To give a little background on why - commercial RE vacancies in 2000 along the US36 corridor to Boulder were down to 2%. After the .com bust, just 18 months later vacancies were running over 25%. I still have contacts in the area, and I don't hear anyone talking recovery. Also people still tell me that a lot of friends are barely hanging on. The spring/summer selling season will tell an interesting story, especially if another round of layoffs hits this year. My recommendation is that if they can wait until next year there will be much better values. The best recommendation is to follow the news on the internet by reading the Denver area papers. The housing prices could be much lower in two years if I am right about what is happening. For course, there are no guarantees. Also you can tell that I firmly believe the housing boom is about over for economic reasons. If you believe that we will have a strong economy in the immediate future, then you probably don't want to do anything that I recommend. I don't see it that way. Ed