Let me voice my opinion, for what it's worth:
Let's see, Denver never really had the steep run-up in values, experienced by much of the country in the early and middle 2000's.
Why? We were tech heavy in the 1990's. When the .com's fell off the cliff in 2000, many of our good jobs went with them. We started our recession in early 2001 and never really recovered.
Remember how we led the nation in foreclosures for much of 2006-2010? That was a result of lenders and builders trying to keep their volume up and ride-out the downturn with exotic loans made in 2001-2006. Those loans came due 3-5 years later. People that were betting on appreciation to bail them out paid a heavy price through foreclosure. Then, add insult to injury, 2008-2009 became our double dip, while the rest of the country was seeing this major recession for the first time.
Now here we are, with huge pent-up demand (think 10 years worth), low relative prices (about even with the 2005-2006 highs, when we were just bumping along the bottom 3%-5% appreciation), historically low interest rates (people are finally beginning to understand these rates can't last forever), with most homeowners who bought after 1998 without enough equity to come-up with a new 20% down payment after the cost of sale from their present home andâ€¦
Well, you get the idea, the perfect storm; lots of Buyers, no inventory and a crazy feeding frenzy.
Of course it doesnâ€™t hurt that weâ€™re still an Oil Patch State, albeit a minor one. If you havenâ€™t noticed, the oil industry is doing just fine, thank you very much.
At least that's my story, I'd love to hear yours.
Dave Cox, GRI, CNE
P.S. Of course, I heard Rush said it was a Democrat conspiracy, so what do I knowâ€¦