Denver real estate market improvement drives economic recovery
Recent reports have identified Denver as one of the hottest markets in the country, with home prices experiencing an increase and the amount of time that homes are on the market reaching new lows. As reports continue to roll in on the recovery for real estate in Denver, new analyses are beginning to note that the strong market is driving a broader economic recovery as well.
A recent home price index report released by CoreLogic revealed that for the Denver-Aurora-Broomfield area, including sales of distressed homes, the HPI grew 8.4 percent in July when compared with 2011, according to the Denver Business Journal. Specifically looking at the Denver metro market, the July HPI, not including distressed sales, saw a 7.3 percent gain over July 2011 and a 5.2 percent gain over June.
“The housing market continues its positive trajectory with significant price gains in July and our expectation of a further increase in August,” Mark Fleming, chief economist for CoreLogic, said in a statement. “While the pace of growth is moderating as we transition to the off-season for home buying, we expect a positive gain in price levels for the full year.”
Another recent article, from local NBC affiliate KUSA and The Associated Press, confirmed the strong growth being observed in the Denver metro area housing market and suggested that the housing recovery is indicative of an overall economic recovery. MacClouse, a professor of finance at the Daniels College of Business, noted that economists have linked the housing market and the economy for a long time.
The news source quoted a real estate professional who said Denver was among the first metros to see the bottom fall out of the housing market, and is now among the first cities to bounce back from a massive volume of foreclosures.
KUSA cited a report showing that in August 2012, residential sales rose 18 percent when compared with last year. In addition, August 2012 sale prices were observed to be 10 percent higher than August 2011. The inventory of available homes on the market has decreased significantly over the last year, down to 10,826 homes in August 2012 from 16,631 homes in August 2011. Homes were on the market for an average of 99 days in August 2011, and this number has shrunk to only 64 days in August 2012.