I don't know anything about the Colorado markets, but that kind of appreciation is not sustainable, and what goes up does actually come down, despite the usual euphoria to the contrary.

And euphoria and optimism are high (as evidenced by  some comments in this very thread!)

"Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. 

Market has another endearing characteristic: He doesn't mind being ignored and so every day he comes back with a new offer until one day in a fit of euphoria he offered a price that was too high to ignore.Leverage only matters if you buy something that doesn't support the price you paid, are speculating (and therefore are at the whims of Mr Market), are overextended or you have to sell.If one does not have a need to sell and does not overextend themselves I can't see how it hurts as long as we are talking about RE leverage and not personal leverage (i.e. you still have personal funds for reserves). 

There seems to be a crazed euphoria in some areas. 

@Jay Hinrichs the euphoria of a monster flip can wear off quickly, considering that one of those good ole boys went BK about 3 years later in the largest individual BK in country history.  

You'd be right if you were investing because of market euphoria and you're trying to get in and out and make your money before the market collapses.

I expect a massive stock market rally over the next month which should contribute to a feeling of euphoria for luxury home buyers.

Anyway good to hear about your deal and share in the euphoria a little even though it is from a distance. 

When the pendulum swings the other way, banks start lending on condos again, financed buyers rejoin the game, and condos are among the lowest priced entry level properties to get into once real estate euphoria comes back.Condos have their downsides, too, and everyone will have their opinion on what's the best.