Updated almost 11 years ago on . Most recent reply
Denver Investments
Hello,
What are people's thoughts on fix-and-hold properties in the LoHi area in Denver? Are these prices sustainable, or will there be a market correction in the near future? My partners and I focus on smaller single family houses.
Thank you
Most Popular Reply
Many people think there is a "bubble" happening in Denver. While I am not an economist, I don't believe this to be true.
YES we have seen very high appreciation the last few years (~10% YoY)
NO that is likely not sustainable.
HOWEVER, the reasons for this appreciation, I think, are long term. People want to move here, they want to live in the city. Our economy is strong for a set of diversified reasons, and we are very entrepreneurial.
What does this mean? If you were really an appreciation gambler you would have gotten in during the recession. I think if you were to get in now, you probably missed the biggest appreciation gains, but I think going forward we will see smaller, but consistent gains year over year. I don't see a lot of 'speculative' investing going on, which to me says 'bubble coming'.