Sunday, October 26, 2008

What Planet Are These People Living On?




Looked at those fancy magazine inserts from Fuller Towne and Country or Kentwood recently?

The listings in there are mind boggling. Most of those homes are in the upper tiers of the price ranges for the Denver Area, but to me, they look extremely expensive! I cannot believe homw many homes are listing for 2 million, 3 million, 4 million and way more up in Denver! To me, it seems like these people are living in a different world! The luxury home buyer is not stupid these days. The "Greater Fool" theory doesn't apply anymore in my mind, but these people are living in a dream world of their own fantasy.

Just because you spent 1 million on a home 3 years ago and remodeled a bathroom, doesn't mean that same home is now worth 1.8 million! What are these people thinking? Are they blind to the economy? Are they blind to the stock market crash? These people are crazy enough to think that in their price range, buyers don't care because they are probably going to pay cash anyway. The luxury home buyers are not sensitive to pricing and will pay whatever they have to to get the right property. Yeah, right. Those days are over.

The lower pricing tiers have seen a big hit in price, so why should these home be any different? One day over a year ago I was fortunate to show a few homes listed for over 4 million around Cherry Creek, and guess what? They are still sitting there at the same price! What gives? Are these people stupid enough to think that they can "wait until the market catches up to their pricing?" Are they willing to wait say, 9 years?

There is even a home in Parker Colorado listed for 22 million. It's been listed since September 2007 at this price. Do you think they might consider a price drop by now? No! Because those buyers living from another planet are going to swoop down from the heavens and give them their price someday! By the way, what does a price drop look like at that price level? You'd have to come down in increments of 500,000 to make any difference at all. Crazy.


This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

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