Denver Home Prices Increase By Nine Percent

Dated: 03/12/2014

Views: 6536

According to a recently-released index from Case-Shiller, Denver housing prices rose nine percent in December 2013 from December 2012. Denver was one of only three cities to show an improvement from November, according to the S&P/Case-Shiller Home Price Indices that tracks the same sales of single-family homes in 20 major metropolitan areas. The index ranked Denver number 16 of the 20 cities covered. Overall, 2013 was the best year since 2005, before the recession began.

Industry insiders concur that it’s not necessarily affordability that’s driving prices in local markets, but rather lack of inventory. Professionals agree there are many buyers who are ready, willing and able to make a home purchase, but they just can’t find the right home. Additionally, these inventory shortages may be resulting in higher home prices, but they’re also resulting in lower sales volumes.
Local real estate experts indicate that even though Denver is near the bottom of the Case-Shiller index, 2013 year was one for the record books. Nationally, the housing market had its best performance in eight years, but gains have moderated.
David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices said that even though the S&P/Case-Shiller Home Price Index ended its best year since 2005, gains are slowing from month-to-month and the strongest part of the recovery in home values may be over.
According to Blitzer, the six cities with the highest year-over-year figures saw their rates decline (Las Vegas, San Francisco, Los Angeles, Atlanta, San Diego and Detroit) and most cities ranked at the bottom improved (Denver, Washington and New York) – Charlotte and Cleveland were the two exceptions.
While Denver has been experiencing tremendous real estate growth in the past couple years, recent economic reports suggest slowdown in activity could be coming. Nationally, overall existing home sales fell 5.1% percent in January from December to the slowest pace in over a year. Additionally, permits for new residential construction and housing starts were both down and below expectations. Some of the weakness reflects the cold weather in much of the country. However, higher home prices and mortgage rates are also taking a toll on affordability. 

Blog author image

Carla Winter - Raymond Selix

Ray and Carla have been working as a team since 1995. Carla’s extensive knowledge of the Denver area real estate market not only includes over 35 years as a Real Estate Broker Associate but also in....

Latest Blog Posts

5 Financing Options For First Time Home Buyers

As a first time home buyer, you may think you’ve only got a handful of financing options to choose from when selecting your first property. However, there are actually several options to choose

Read More

Rising Inventory Causing Decrease In Bidding Wars

According to Seattle-based real estate brokerage Redfin, lower-priced properties in Denver can still garner a high amount of attention, but overall, the days when a home in metro Denver would list

Read More

Looking For Homes In Denver Make Mortgage PreApproval Your First Step

So you’ve decided to start looking at homes in Denver. You may think the first step is to hop on the MLS and see what’s available, but do you even know how much house you can afford? That’s

Read More

Despite Lower Interest Rates Affordability Issues Remain In Denver

While falling mortgage rates have put some energy back into existing home sales, new home purchases are taking a hit. According to Robert Dietz, chief economist at the National Association of

Read More