Dee Dee
Elite Member
- Joined
- Jan 16, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
LeeAnn,
Denver saw a similar phenomenon in the early 80's when the oil industry went bust. A large number of people who were linked to that industry bailed out of town. Then peace broke out all over with the winding down of the cold war and the defense industry took a hit, leaving many laid off from one of the major employers at the time, Martin Marietta. Just about every block in the city had a home with a HUD sign in the window.
The lower end of the market still appears to be strong (in this area it's anything under $225,000), the middle range is slowing down ($225,000-$325,000) and anything above that seems to be sitting on the market for much longer with fewer takers. The property management companies that I've spoken to are all moaning that they have a glut of upper end rentals that they're having trouble leasing out, most are the homes of people who transferred out and couldn't sell for the price they needed to break even.
Quite a contrast to the bidding wars of three years ago.
Denver saw a similar phenomenon in the early 80's when the oil industry went bust. A large number of people who were linked to that industry bailed out of town. Then peace broke out all over with the winding down of the cold war and the defense industry took a hit, leaving many laid off from one of the major employers at the time, Martin Marietta. Just about every block in the city had a home with a HUD sign in the window.
The lower end of the market still appears to be strong (in this area it's anything under $225,000), the middle range is slowing down ($225,000-$325,000) and anything above that seems to be sitting on the market for much longer with fewer takers. The property management companies that I've spoken to are all moaning that they have a glut of upper end rentals that they're having trouble leasing out, most are the homes of people who transferred out and couldn't sell for the price they needed to break even.
Quite a contrast to the bidding wars of three years ago.
cut off in June 1979 and didn't come back on until March 1983. Losses all over the place. The hose got pinched again in June 1989 and didn't flow again until March 1993. Same problem. When Greenspan started raising rates in June 1999, things began to falter and I have seen some significant losses on big stuff and new homes reselling within a year. Buy all the real estate and stock you can in February 2003, because, if history repeats itself, we will see the boom again in March 2003. Make certain you sell everything in May 2009 and get into Treasuries in June 2009 when it slows down again.