Denver home prices continue to rise
The Denver housing market continues to demonstrate marked recovery, and a recent industry report could be yet another signal that now is a good time to invest in real estate in Denver. The latest Standard & Poor's/Case-Shiller Home Prices Indices report was released October 30 and examines data from August.
The index revealed that during the month of August, home prices increased by 5.5 percent over August 2011 in the Denver metropolitan area. Home prices were also up 0.5 percent over July 2012. The Denver Post reported that the increase in home prices is slowing, as Denver home prices increased 1.3 percent in July from June 2012. However, the market improvement may not necessarily be slowing. The Denver Business Journal reported that July 2012 saw a 5.4 percent increase over July 2011, meaning August's year-over-year increase was 0.1 percent greater.
The Denver Business Journal reported that the index for August marks the eighth straight month that Denver has posted year-over-year increases, and "at a pace that eclipsed all but four of the nation's 20 largest markets."
The Case-Shiller Home Price Index collects and analyzes data from the 20 largest metros in the country. The source revealed that the only major markets that saw greater gains in August, year-over-year, were Phoenix (up 18.8 percent), Detroit (up 7.6 percent), Minneapolis (up 7.4 percent) and Miami (up 6.7 percent).
"Home prices continued to climb across the country in August," David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement, according to The Denver Post. "Single family housing starts are 43 percent ahead of last year's pace, existing and new home sales are also up, the inventory of homes for sale continues to drop and consumer mortgage default rates are reaching new lows."
Denver's hot housing market
A recent article in 24/7 Wall St. listed Denver as one of the 10 cities with the hottest housing markets right now. The source revealed that while national home prices decreased by 1.9 percent in 2011, Denver's home prices increased by 2.4 percent. In addition, effects of the bursting of the housing bubble were not as severe in Denver, and Denver doesn't have as many homes in foreclosure or with delinquent mortgages than many other major markets.
"Housing construction starts were at 72 percent of historical levels, which was one of better levels among large housing markets, indicating a strong rebound from the downturn," reported 24/7 Wall St.