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.
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.