20 years ago, I was a brand new Realtor. I was young, excited, and saw a real estate market about to blossom. I couldn’t figure out why the industry veterans looked a little battle weary and were cautious in their optimism about the market. 20 years later, I’m the veteran and I understand things much more clearly.
I bring this up because our current local real estate market is drawing constant comparisons to our market of 20 years ago. Back then we were finally climbing out of the mess left behind by the “energy bust”, and 20 years later we find ourselves in the same spot, except this time the culprit was a toxic mix of the “dot com” crash (early 2001), followed up with the “housing bubble” bursting (2007).
A significant difference between 1992 and 2012 for the Denver housing market is the (national) economy. In 1992 the economy was healthy with no major signs of trouble. In 2012 we are trying to maintain an optimistic outlook, but the economy is struggling. Our local housing market is strong and getting stronger, but until the economy improves our success will be limited to a degree.