Denver home prices receive a boost

People looking at real estate in Denver have more good news to consider as recent reports indicate that home prices are on the rise once again. This could indicate that housing market recovery is in fact in full swing in Denver, and it could be a good time to buy.

A recent article in the Denver Business Journal cited a recent CoreLogic report that showed that average home sale prices in the Denver metropolitan area increased in August for the seventh month in a row, when compared with the same month in 2011. The CoreLogic Home Price Index for the Denver-Aurora-Broomfield area increased by 8.6 percent in August over August 2011, and the data includes distressed sales. Sale prices were observed to increase by 0.6 percent over July 2012 as well, including distressed sales.

Looking at the area without distressed sales, CoreLogic indicated that home prices rose by 7.5 percent in August when compared with last year and 0.8 percent from July.

Mark Fleming, chief economist for CoreLogic, said in a release, "Again this month prices rose on a year-over-year basis and our expectation is for that to continue in September based on our pending HPI forecast. The housing market gains are increasingly geographically diverse with only six states continuing to show declining prices."

President and CEO of CoreLogic Anand Nallathambi added that the forecasts for continued gains in Septembers have many thinking optimistically for a progressive rebound in the residential housing market.

Another recent industry study that can be found on Marketwire reflected the strong market conditions in Denver as well. The report indicated that in September, there were a total of 3,949 homes and condos sold in the Denver metro area, which is the highest number of sales Denver has seen in September since 2008.

Looking at sales, this report indicated that September 2012 sales were up 18 percent over September 2011 and prices were strong as well. The average home price from sales was at $282,305 in September, which is consistent with August numbers and up 11 percent when compared with September 2011.

The industry study indicated that inventory has also continued to shrink, with 10,470 residential properties listed for sale at the end of September. This is 3 percent fewer than August and could be responsible for driving home prices up. The amount of time that a home stays on the market was reported at 64 days in September, which is significantly less than the 105 average days homes spent on the market in September 2011.