Real estate analysts from CoreLogic reported that Colorado single-family home prices jumped 8.4 percent in December 2014 from December 2013, the biggest increase in the country. The report, released last week, also showed that homes in the Denver metro area rose by 9.81 percent.
Experts from CoreLogic said the strong performance can be attributed to a record-low supply of unsold homes, while demand is stronger than ever.
Denver is experiencing a strong economy and a growing job market, making it one of the most popular destinations for people to move. Those moving here, especially first-time buyers, are feeling the challenges of low inventory – particularly lower-priced starter homes. Experts agree one of the biggest challenges is the lack of entry-level for-sale multifamily homes.
While low inventory levels present their own set of issues, some industry insiders are concerned that near double-digit appreciation will make homes unaffordable.
Some say they would be more comfortable with prices rising six percent to eight percent, rather than closing in on 10 percent. While some people say if prices rise high enough that will convince more people to sell their homes, which will then increase supply, but not everyone is convinced.
Near double-digit appreciation was welcome when it helped Denver become one of the first cities in the nation to recover from the housing downturn, but many industry experts agree it’s not sustainable in the long run.
Meanwhile, the national average appreciation for all single-family homes was 5 percent in December, according to CoreLogic. Texas was second after Colorado, showing a 7.8 percent gain.
Nationally, home price growth moderated and stabilized at five percent the last four months of the year. The moderation can be clearly seen at the state level, with Colorado, Texas and New York at the high-end of appreciation, ending the year with increases of about eight percent.
Author:Ken Blevins Phone: 720-255-7242 Dated: February 17th 2015 Views: 818 About Ken: Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and...
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