Case Shiller Deja Vu - Feeling Bubbly

by Osman Parvez

Flippers are back. Rookie real estate agents are entering the business in droves. Inventory is scarce and desperate buyers are bidding up prices. 

Welcome to 2015. It looks a lot like 2005, minus the inventory scarcity.

Take a look at the Case-Shiller index for Denver. 

- Nobody is talking about it, but the index has exceeded the peak level of 2006. 

- It's extremely difficult to predict the top or the bottom of a market cycle. Pay close attention to inventory and sales volume. If you haven't already, subscribe to our research, "like" our Facebook page, and follow our Twitter. Or if you prefer, subscribe to House Einstein by Email.

- Protect yourself from the downside of the cycle by being selective in the real estate assets you acquire. Do not purchase property in unproven locations or property that has limited potential due to strict regulations. Select properties that appeal to the majority of potential buyers and reflect regional tastes. Choose your Realtor carefully. 

- The Denver MSA is not Boulder. The fundamentals of supply and demand in Boulder are closely tied to CU, federal labs, and certain industry sectors however, we are also not immune to regional and macro economic influences. Get the best adviser you can find.  

- The S&P/Case-Shiller Home Price Indices are calculated monthly using a three-month moving average. Index levels are published with a two-month lag and the next data release will be at 9 am EST on Tuesday, January 27. Index performance is based on non-seasonally adjusted data.

The Boulder Real Estate Meetup is scheduled for January 22.  Our topic: Best Practices for Bidding Wars.  Join Us!  Click HERE.

Like this analysis?    Subscribe to my research.          Ready to buy or sell?  Click HERE to schedule an appointment or call 303.746.6896.

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

Please Note

This document contains forward-looking statements. You are strongly cautioned that investment results are subject to business, economic and other uncertainties. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time. Always consult your financial advisor before making an investment decision.