Market Conditions in Laramie>Question Details

Sklahn, Home Buyer in Laramie, WY

why are the prices in laramie wyoming so high and not dropping compared to the rest of the country?

Asked by Sklahn, Laramie, WY Fri Aug 7, 2009

as far as i can tell, there is not industry or job market driving the laramie economy...yet many of the listings are >$100 /sf. i am curious what the average price / sf was 18 months ago, it has dropped all over the country by 15-50% in the last year and a half, so why not in laramie?

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The way I see it the real estate brokers, assessors and banks are working together to keep prices high. If you drive around town there are a lot of houses sitting with for sale signs that have been on the market for a long time. Something is only worth what someone with money is willing to pay.
0 votes Thank Flag Link Sat Aug 8, 2009
The Laramie Lenders never bought into the "toxic" lending practices that other parts of the country did. So it was generall discouraged for buyers to do variable rate loans based on the assumption that people move every 5 years. Most loans were at fixed interest rates, so mortgage payments are steady. The economy here is steady also. Not as many people are losing jobs and being laid off as in the rest of the country because our main income is the University of Wyoming and other Schools which is increasing enrollment even through the economic down turn. Home prices are not on the rise as they were, and they couldn't continue to rise like they were. Prices now are back to about 2 -3 years ago, which means if you bought in the last 2-3 years, you may want to stay in the house as it appears we have leveled off, but we will not continue to drop. Home that are on the market for long periods of time are there because they were put on at the peak right when prices were falling and were either priced to high, or now that they have sat, people wonder what is wrong with them. These homes should be reevaluated at the current market and either be taken off for a while or the owner may need to realize that their home is worth less now than if they sold 1 1/2 years ago. Homes priced correctly in town are now selling. Still a strong, strong market and a good time to buy.
2 votes Thank Flag Link Thu Feb 4, 2010
Sam, just looking...read Mardell Aragon's answer again. She is right on target...the lending practices that hurt so many areas of the nation are not very popular here, so Laramie has not suffered as much. There are several, large, stable employers in town that have been a steadying factor in keeping Laramie's housing market from diving. The University of Wyoming is one of them, and the additional need for rental housing generated by a large university has also supported the value of apartments and rental homes - Laramie has alot of these, too.

Compared to many other places in the nation, you can still purchase a home for much less than other small cities, and its a nice place to live. Although some properties have indeed lost value, it has not been the severe drops seen elsewhere. Many neighborhoods have seen increases in value, as dictated by those "willing buyers" and "willing sellers" who have kept our housing market moving.

Any knowledgable real estate agent or mortgage broker will tell you that housing markets are driven at the local level. Just because Las Vegas has thousands and thousands of empty homes on their market does not mean Laramie should be the same. The conditions are different, that's why the markets are different. So, Sam...keep reading. There are other places across the nation with similar situation as Laramie, and they have their own conditions that have kept their housing market more stable.
0 votes Thank Flag Link Fri Jul 27, 2012
Sam, just looking...read Mardell Aragon's answer again. She is right on target...the lending practices that hurt so many areas of the nation are not very popular here, so Laramie has not suffered as much. There are several, large, stable employers in town that have been a steadying factor in keeping Laramie's housing market from diving. The University of Wyoming is one of them, and the additional need for rental housing generated by a large university has also supported the value of apartments and rental homes - Laramie has alot of these, too.

Compared to many other places in the nation, you can still purchase a home for much less than other small cities, and its a nice place to live. Although some properties have indeed lost value, it has not been the severe drops seen elsewhere. Many neighborhoods have seen increases in value, as dictated by those "willing buyers" and "willing sellers" who have kept our housing market moving.

Any knowledgable real estate agent or mortgage broker will tell you that housing markets are driven at the local level. Just because Las Vegas has thousands and thousands of empty homes on their market does not mean Laramie should be the same. The conditions are different, that's why the markets are different. So, Sam...keep reading. There are other places across the nation with similar situation as Laramie, and they have their own conditions that have kept their housing market more stable.
0 votes Thank Flag Link Fri Jul 27, 2012
You are lucky Laramie.

A market is defined as what a willing buyer will pay and what a willing seller will agree to sell for. If the market is holding there, that's a good thing.

Home sellers may, indeed, need to be more realistic. However, the market is more complex than merely buying and selling property. Property also is leased. New homes are built.

Standard advice for sellers these days is to prepare for a shock. In some markets, even with prices down a home can sit for months. In this environment, many sellers are opting to hold on to their properties and rent them out while the market remains weak - in hopes of selling later.

Meanwhile, builders are not building at levels even approaching years past.

These are conditions for an inventory shortage. Shortages are a different situation from most of the nation.

If Laramie is like a few other parts of the country where jobs are more plentiful and foreclosures not overwhelming, the market is stabilizing. That can change, of course. But for now, it allows for stability.

Stability is a good situation for buyers and sellers. The greater trend may be to the negative the next two years, but some markets may not feel the national trend. Colorado has been unaffected by recessions in years past. Energy rich parts of the nation do not reflect the rest of the economy. These regions can get hit hard by an oil slump like the one that hit Colorado in the '80s. A better local economy is nothing to complain about.

Best,
SuZ
PML of Longmont, CO
0 votes Thank Flag Link Tue Aug 9, 2011
Laramie is not in touch with reality. The way I see it, people got caught up with the boom times and paid way too much for their home in the first place. Then they took out a second mortage which they spent on something other than their house and now they want to sell and get everything they owe and a huge profit as well. The realitors and assessors are helping them along by telling them how much their property is "worth" and now you have a bunch of houses for sale way overpriced for the average home buyer.
0 votes Thank Flag Link Tue Aug 9, 2011
I think home prices have come down a little bit but for the most part - have stayed steady because they're selling. Laramie didn't have the huge upswing in prices (thus, the resulting lack of downswing). Homes are worth what someone will pay - and if people are paying it then it sounds like the market is just right. :)
0 votes Thank Flag Link Tue Oct 6, 2009
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