A recently released home price index report indicated that Denver-area home prices increased 7.8 percent in November 2012 from a year earlier, making it the metro area’s biggest year-over-year price gain since prior to the recession. Additionally, this was the 11th straight month of year-over-year price gains in metro Denver. Local home prices in November were at their highest level since October 2007, according to historic data from the report series.
This latest report gives Denver an index value of 134.5 for November, which means that local home resale prices averaged 34.5 percent higher than they were in the benchmark month of January 2000. The last time the Denver index was that high was in October of 2007, when it stood at 136.09. These prices are for resales of stand-alone single-family homes only, not for new construction or condominiums.
Experts agree that housing demand in the market is very strong right now. Part of that demand increase is made up of relocating people coming to Colorado as many of the state’s premiere companies are taking on new employees.
In November Denver saw greater year-over-year price gains than all but seven of the 20 major cities tracked by index report. The average gain was 5.5 percent. The news is promising as it shows the housing is clearly recovering. Prices are rising as are both new and existing home sales, as the pace of year-over-year price gains in Denver has been picking up speed for several months.
If you’ve been thinking about listing your home this spring, you probably won’t be alone. Real estate industry experts predict that sellers waiting for price gains might get off the fence this year and more inventory should be available for the spring selling season. Though they also agree that there will be some homeowners who will hold out as prices continue to rise.