Good things on the horizon for Denver real estate
A recent report from the Metro Denver Economic Development Corporation showed positive signs for real estate in Denver, within the area's housing market, its commercial real estate market and its employment figures all contributing to a broad-based economic rebound, according to the Denver Business Journal.
A digest of the Monthly Economic Summary for August 2012 said, "Employment gains, decreasing vacancy rates in commercial real estate and strengthening housing trends are all optimistic indicators of the region's continued economic stabilization."
Specifically, the report showed Metro Denver's employment rose 2.2 percent from the first half of the year. Tom Clark, CEO of the Metro Denver EDC, said in the digest, "Although job gains aren't making a significant dent in the unemployment rate, it's still promising to see growth in the region's labor market."
Regardless of the more subtle employment hikes, the housing market is seeing substantial changes. The report revealed that during the first six months of 2012, there were 68.5 percent more residential building permits issued than the first six months of 2011. Home prices are additionally seeing a significant improvement, with the report finding that home sales in the first seven months of 2012 were up 16.8 percent when compared with the first seven months of 2011.
Commercial real estate in Denver also demonstrated improvements. Clark said in the digest, "In the last month, we've also seen our share of companies receiving impressive contracts of announcing expansion."
A July 31 article in the Denver Business Journal revealed that according to the recent S&P/Case-Shiller Home Prices Index, metro Denver area home prices continued to show a year-over-year increase for the fifth month in a row. The news source reported that the pace metro Denver is seeing for its rising home prices has "eclipsed all but three of the nation's 20 largest markets."
The Denver Business Journal revealed that the only other major markets in the country that posted greater gains were Phoenix, Minneapolis and Dallas. David M. Blitzer, chairman of the Index Committee at S&P Indices, said, "With May's data, we saw a continuing trend of rising home prices for the spring." Speaking about the nationwide results from the report, Blitzer added moving forward, this trend must continue into late summer and early fall and advised that it be remembered that "spring and early summer are seasonally strong buying months."