Thanks for the input. I have posted to a local forum that can probably
give some good advice as well. These new places are pretty darn modern
and contemporary. They started listing at $460k. There are five
units. One sold for $455k and after a price drop, another sold for
$430k. They dropped again to $399K and one sold this past weekend.
There are now two left and I think we are going to put an offer in for
one (after a second review today) for $370K. They are identical units,
so I feel good that someone out there would pay $60k more than what is
being asked right now but still worried about all of the new
construction going in around us.

Thanks again for any additional thoughts.

Todd H. wrote:
writes:

Hello,

I have been looking around to buy a place in the Highlands area
(Denver, CO) for the past few months. I plan to put an offer down on a
place in the next day or two but had a question for the experts. There
is so much new residential construction going on in the area. I'm not
sure what to make of it. I've been looking in the townhome market and
there are quite a few planned townhomes going in and hundreds of condo
units going up. On one hand, I see the surrounding property value
increasing but on the other, I'm concerned about resale 2-5 years from
now with all of the new places going in.

As well you should be.

Just wondering what the take was on the Highlands (specifically
E. Highlands) and if it is a good investment to buy new construction
where so much new has already gone up and much more is planned.

Thanks for your insight.

There are a couple schools of thought on this. If the market is
robust, new construction is thought to be a good investment,
particularly if you get in on pre construction pricing. The builder
enforced price increases make your home automatically appreciate.

On the other hand, when you go to sell if they're still building in
the area, you're competing with other builders and all their upgrade
and financing incentives, etc.

If you have an old property in an area suddenly flooded by new, if
they have features you don't have and you look dated by comparison,
you're gonna take longer to sell, and/or sell for less.

Right now the overall market is pretty tepid so I would be careful...
Any chance you can drum up some local advice?

Best Regards,
--
Todd H.
http://www.toddh.net/