Monday, June 4, 2012
What is happening with the Denver real esate market at this time?
As we head into the summer selling season, we are faced with lower inventory and many buyers in the buyer pool looking at the same homes. Gone are the days when you could wait a few days to make a decision. I have been running into multiple offer situations at various price points and homes that are well priced and in good condition come off the active market almost as soon as they come on. This is great news for sellers that have been waiting for the market to start changing for the better. Many homes that are short sales and foreclosures are slowly getting absorbed all over the city.
For the third straight month, metro Denver posted a year-over-year increase in home prices in March, at a pace that eclipsed all but two of the nation's 20 largest markets, according to the latest S&P/Case-Shiller Home Prices Index.
Denver also saw a bigger month-over-month price gain in March than all but six other markets, seasonally adjusted, according to the closely-followed monthly report on average home-resale prices from Standard & Poor's. Denver's three consecutive months of year-over-year price gains followed 18 months of declines.
Denver prices were up 2.6 percent in March from the same month of 2011, the Case-Shiller report said. That followed year-over-year gains of 0.5 percent in February and 0.2 percent in January. The only major markets with greater gains in the year ending in March were Phoenix (up 6.1 percent) and Minneapolis (up 3.3 percent).
The average year-over-year price change over the 12-month period in the 20 markets tracked by the report was a 2.6 percent decline; Atlanta saw the biggest price decline, down 17.7 percent. Only seven of the 20 markets saw prices rise.
Metro Denver's year-over-year gains in March, February and January followed annual declines of 0.4 percent in December 2011 and 0.2 percent in November 2011. This can be attributed to our slightly cyclical market due to inclement weather.
Before that, year-over-year price declines in the area had ranged from 0.9 percent to 4.1 percent going back to July 2010. (See the table at the end of this article for data on year-over-year price changes in Denver for the last few years.)
The prices are for resales of stand-alone single-family homes only, not for new construction or condominiums.
As for price changes from one month to the next, prices in Denver rose 1.1 percent in March from February, seasonally adjusted. Adjusted prices were up 0.3 percent from January to February, the Case-Shiller report said.
(Not seasonally adjusted, Denver prices rose 1.5 percent in March from February after falling 0.9 percent in February from January.)
March's month-to-month average price change for all 20 cities in the report was up 0.1 percent, seasonally adjusted, and flat, not seasonally adjusted. The Case-Shiller report assigns index values to the 20 cities based on current average home prices in relation to what they were in January 2000. Denver’s index for March was 123.66, meaning that prices were 23.7 percent higher than they were in January 2000. The 20-city average index was 134.1.
The Case-Shiller index is compiled by comparing matched-price pairs for thousands of single-family homes in each market. Standard & Poor’s and Fiserv Inc. publish it. Please see below for declines and then positive changes on prices in the metro area.
Denver home price changes 2010-2011
Here are year-over-year price changes in the Denver area from the S&P/Case-Shiller Home Prices Index report for recent months:
March 2012: Up 2.6 percent.
February 2012: Up 0.5 percent.
January 2012: Up 0.2 percent.
December 2011: Down 0.4 percent.
November 2011: Down 0.2 percent.
October 2011: Down 0.9 percent.
September 2011: Down 1.5 percent.
August 2011: Down 1.6 percent.
July 2011: Down 2.1 percent.
June 2011: Down 2.5 percent.
May 2011: Down 3.3 percent.
April 2011: Down 4.1 percent.
March 2011: Down 3.8 percent.
February 2011: Down 2.6 percent.
January 2011: Down 2.3 percent.
Monday, April 2, 2012
What is happening with the supply of homes in Denver at this time?
Many homebuyers in Denver are having a hard time not finding their dream home in Denver, but finding a home period. The inventory is at an all time low. There is more inventory coming on the market all of the time, but I have been finding that if a home is priced well and in good condition, it comes off of the active market pretty much as soon as it comes on the market.
Below is an exerpt from an article that I found very imformative for buyers on the home search at this time.
Home-buying in metro Denver took a slight breather in January after a robust December, but a lack of inventory threatens to cut off the market's oxygen if more sellers don't start showing up soon.
"Activity in January was good," said Gary Bauer, an independent real estate analyst who prepares a monthly home sales report. "But inventory is the topic right now."
Buyers closed on 2,470 residential properties in January, a 21.7 percent decline from December, but a 14.6 percent increase from the 2,156 homes sold a year earlier.
Buyers and sellers often rush to close deals in December ahead of the year's end, so January is often a slower month, Bauer said.
The number of homes for sale, however, took another tumble,
(The Denver Post)falling to 10,443, a 5 percent decline from December. Inventories are down 41.6 percent from January 2011, when 17,890 homes were available, and by two-thirds from the all-time peak reached in July 2006.
Normally, a big decline in supply should signal a bottom in the market. As demand outstrips supply, prices rise, but that hasn't happened yet.
The median price of a single-family home sold dropped 2.7 percent to $218,855, compared with $225,000 for January a year ago. It is down 4.8 percent from December's median $230,000.
Explanations vary. One is that banks have moved slower on foreclosures, reducing the supply of distressed properties hitting the market. The other is that home values have fallen so much that some sellers can't get out without bringing money to the table. Rising prices would help those trapped sellers and entice others looking to make a return.
"It is trending towards a seller's market," said Randy Hay, a broker with Keller Williams DTC. "Prices are going to have to go up."
Hay said he listed a $90,000 townhouse Monday and by Thursday was courting a serious offer. Although sellers are still expected to offer buyers concessions to help with closing costs, they are getting the full asking price and multiple bids on well-maintained homes priced under $300,000.
How low is too low when it comes to inventory? Bauer said he would become concerned if the number of homes for sale in metro Denver inventories goes below 9,500.
Below is an exerpt from an article that I found very imformative for buyers on the home search at this time.
Home-buying in metro Denver took a slight breather in January after a robust December, but a lack of inventory threatens to cut off the market's oxygen if more sellers don't start showing up soon.
"Activity in January was good," said Gary Bauer, an independent real estate analyst who prepares a monthly home sales report. "But inventory is the topic right now."
Buyers closed on 2,470 residential properties in January, a 21.7 percent decline from December, but a 14.6 percent increase from the 2,156 homes sold a year earlier.
Buyers and sellers often rush to close deals in December ahead of the year's end, so January is often a slower month, Bauer said.
The number of homes for sale, however, took another tumble,
(The Denver Post)falling to 10,443, a 5 percent decline from December. Inventories are down 41.6 percent from January 2011, when 17,890 homes were available, and by two-thirds from the all-time peak reached in July 2006.
Normally, a big decline in supply should signal a bottom in the market. As demand outstrips supply, prices rise, but that hasn't happened yet.
The median price of a single-family home sold dropped 2.7 percent to $218,855, compared with $225,000 for January a year ago. It is down 4.8 percent from December's median $230,000.
Explanations vary. One is that banks have moved slower on foreclosures, reducing the supply of distressed properties hitting the market. The other is that home values have fallen so much that some sellers can't get out without bringing money to the table. Rising prices would help those trapped sellers and entice others looking to make a return.
"It is trending towards a seller's market," said Randy Hay, a broker with Keller Williams DTC. "Prices are going to have to go up."
Hay said he listed a $90,000 townhouse Monday and by Thursday was courting a serious offer. Although sellers are still expected to offer buyers concessions to help with closing costs, they are getting the full asking price and multiple bids on well-maintained homes priced under $300,000.
How low is too low when it comes to inventory? Bauer said he would become concerned if the number of homes for sale in metro Denver inventories goes below 9,500.
Wednesday, March 7, 2012
Is this spring the time to buy?
The spring selling season is right around the corner. Could this be the right time to buy and get "off the fence?" Pending sales are up, inventory is down and some economists are predicting an end to the housing crash this year. What does this mean for home shoppers? How should it shape your strategy?
The latest numbers showed that the housing market isn't quite there: S&P/Case-Shiller's 20-City Composite Home Price Index fell 3.9% in the 12 months ending in December, and price declines escalated at the end of the year. The bad news was widespread, with 18 of 20 metros posting declines. Miami and Phoenix were the only markets to pick up at the end of the year, and Detroit was the only city to post an annual uptick.
The good news is there's really not much further to fall, says economist Paul Dales of Capital Economics. Case-Shiller's report showed prices dropping faster at a time when housing prices typically do decline. Prices continued to drop at a slightly faster rate at the end of the year, but Dales says they won't be dropping much longer.
"There are compelling reasons to believe that the end of the housing crash is finally in sight," Dales says.
That's because housing prices — now back at 2002 levels (2000 if you adjust for inflation) — are now below "fair value," or what market observers consider justified relative to incomes and market demand. Home prices are 10% below rents and 24% below disposable per-capita income.
The economy is stronger, banks are more willing to lend and mortgage rates are still hovering near historic lows.
And there are already signs that demand is coming back. Contracts to purchase existing homes neared a two-year high in January, rivaling the period before the expiration of the first-time homebuyer tax credit, according to the National Association of Realtors. Pending sales increased 2% in January over the previous month and 8% over January 2011. That figure also suggests that home sales will have increased again in February after ticking up in January.
Signs also indicate that a fair amount of excess inventory of housing has been wrung out of the market in the past year, which is good news for sellers but could mean buyers have a little less to choose from and a little less authority.
The inventory of existing homes for sale declined 21% in the year ending in January, bringing the supply to 6.1 months, the lowest level since April 2006. Of course, analysts say this not only was a matter of buyers snapping up foreclosure bargains but also had a lot to do with people taking homes off the market because of sluggish demand and falling prices.
More houses should hit the market in spring, analysts say, including a large number of bank-owned, or REO, properties that were held up in processing last year. With these distressed properties padding supply, prices should remain low for buyers this season.
Moreover, 51% of agents recently surveyed by Coldwell Banker said that sellers are more willing to price their home competitively this year.
Dales, for one, says he doesn't expect "significant and sustained" price increases until 2014 at the earliest.
The good news is that most buyers probably won't lose much equity with a spring purchase. If you're one of the millions facing rising rents, buying could be a smart move, provided you're willing to stay in the house for a while.
Housing market snapshot
Existing-home sales ticked up 0.7% to 4.57 million in January from 4.54 million during the same period a year earlier, according to the NAR. The sales represented a 4.3% increase from the 4.38 million homes sold in December, which is typically a slower month.
NAR chief economist Lawrence Yun says buyers are finally responding to favorable market conditions, including record-low mortgage rates and bargain home prices.
The U.S. median existing-home price declined 2% from January 2011 to $154,700, as distressed properties continued to figure prominently, accounting for 35% of all sales.
The latest numbers showed that the housing market isn't quite there: S&P/Case-Shiller's 20-City Composite Home Price Index fell 3.9% in the 12 months ending in December, and price declines escalated at the end of the year. The bad news was widespread, with 18 of 20 metros posting declines. Miami and Phoenix were the only markets to pick up at the end of the year, and Detroit was the only city to post an annual uptick.
The good news is there's really not much further to fall, says economist Paul Dales of Capital Economics. Case-Shiller's report showed prices dropping faster at a time when housing prices typically do decline. Prices continued to drop at a slightly faster rate at the end of the year, but Dales says they won't be dropping much longer.
"There are compelling reasons to believe that the end of the housing crash is finally in sight," Dales says.
That's because housing prices — now back at 2002 levels (2000 if you adjust for inflation) — are now below "fair value," or what market observers consider justified relative to incomes and market demand. Home prices are 10% below rents and 24% below disposable per-capita income.
The economy is stronger, banks are more willing to lend and mortgage rates are still hovering near historic lows.
And there are already signs that demand is coming back. Contracts to purchase existing homes neared a two-year high in January, rivaling the period before the expiration of the first-time homebuyer tax credit, according to the National Association of Realtors. Pending sales increased 2% in January over the previous month and 8% over January 2011. That figure also suggests that home sales will have increased again in February after ticking up in January.
Signs also indicate that a fair amount of excess inventory of housing has been wrung out of the market in the past year, which is good news for sellers but could mean buyers have a little less to choose from and a little less authority.
The inventory of existing homes for sale declined 21% in the year ending in January, bringing the supply to 6.1 months, the lowest level since April 2006. Of course, analysts say this not only was a matter of buyers snapping up foreclosure bargains but also had a lot to do with people taking homes off the market because of sluggish demand and falling prices.
More houses should hit the market in spring, analysts say, including a large number of bank-owned, or REO, properties that were held up in processing last year. With these distressed properties padding supply, prices should remain low for buyers this season.
Moreover, 51% of agents recently surveyed by Coldwell Banker said that sellers are more willing to price their home competitively this year.
Dales, for one, says he doesn't expect "significant and sustained" price increases until 2014 at the earliest.
The good news is that most buyers probably won't lose much equity with a spring purchase. If you're one of the millions facing rising rents, buying could be a smart move, provided you're willing to stay in the house for a while.
Housing market snapshot
Existing-home sales ticked up 0.7% to 4.57 million in January from 4.54 million during the same period a year earlier, according to the NAR. The sales represented a 4.3% increase from the 4.38 million homes sold in December, which is typically a slower month.
NAR chief economist Lawrence Yun says buyers are finally responding to favorable market conditions, including record-low mortgage rates and bargain home prices.
The U.S. median existing-home price declined 2% from January 2011 to $154,700, as distressed properties continued to figure prominently, accounting for 35% of all sales.
Monday, February 20, 2012
What makes one comparable sale different from another?
Real estate agents use comparable sales or "comps" (properties recently sold in the area) to see what the market bears for a listing price or value range marketing.
But what makes a home a good comp? A few things must line up in order for the agent to utilize the comp to justify your listing price. The same neighborhood, school district, similar street and, of course, similar housing features and size. If these things align, then a comp can be used to provide a current estimated value of your home.
Ideally, using a comp from a home that is the same model in the same subdivision is key. Even better is if a sold comp closed escrow very recently. Taking comps from many weeks or months before can weaken the comp.
The expertise of a highly knowledgeable real estate agent can save you many hours of research and headaches. Most people don't really know how to compare real estate properties, which is why they hire an agent. Good agents take the work out of selling your home and give you solid reason to understand why the agent is pricing the home at a particular price.
Location, upgrades, amenities, sale date, extras, foreclosures, short sales, and unique nuances of the home all affect the listing price and how your home is compared to a comp.
Taking a closer look at each of these shows exactly what people in your area might be looking for when it comes to buying a home. For instance, a higher price on a home that has a pool can indicate that this is a family neighborhood and buyers put an increased value on amenities that create family/social fun. Your home may not have a pool but it might have another type of amenity: tennis courts, gym, or putting green.
Agents look at both what is similar and what makes your home stand out. They search for the best characteristics to showcase and, when comparing your home to others that have sold, they look to see how yours stacks up from a buyer's perspective.
Agents can add value to a home that might not have, say, for instance, the pool. Instead, your home might have an extra bedroom or den complete with floor-to-ceiling, high-quality bookcases.
Reviewing the comps can provide a lot of insight about sales in your neighborhood. Physically viewing the properties can be even more eye-opening. Agents who routinely work in the neighborhood may have an excellent grasp of which homes will sell fastest. It's not a lucky guess.
They've been inside these homes and have seen the notable upgrades or the tragic flaws of a home. They also know which homes were foreclosures or short sales. Generally, a foreclosed home is in poor condition. However, a short sale can be in much better condition. Both of these sales are at discounted rates. So, if a comp is used from one of these types of sales, your agent will take careful consideration to evaluate the distinct differences that may increase the value and, ultimately, the listing price on your home.
But what makes a home a good comp? A few things must line up in order for the agent to utilize the comp to justify your listing price. The same neighborhood, school district, similar street and, of course, similar housing features and size. If these things align, then a comp can be used to provide a current estimated value of your home.
Ideally, using a comp from a home that is the same model in the same subdivision is key. Even better is if a sold comp closed escrow very recently. Taking comps from many weeks or months before can weaken the comp.
The expertise of a highly knowledgeable real estate agent can save you many hours of research and headaches. Most people don't really know how to compare real estate properties, which is why they hire an agent. Good agents take the work out of selling your home and give you solid reason to understand why the agent is pricing the home at a particular price.
Location, upgrades, amenities, sale date, extras, foreclosures, short sales, and unique nuances of the home all affect the listing price and how your home is compared to a comp.
Taking a closer look at each of these shows exactly what people in your area might be looking for when it comes to buying a home. For instance, a higher price on a home that has a pool can indicate that this is a family neighborhood and buyers put an increased value on amenities that create family/social fun. Your home may not have a pool but it might have another type of amenity: tennis courts, gym, or putting green.
Agents look at both what is similar and what makes your home stand out. They search for the best characteristics to showcase and, when comparing your home to others that have sold, they look to see how yours stacks up from a buyer's perspective.
Agents can add value to a home that might not have, say, for instance, the pool. Instead, your home might have an extra bedroom or den complete with floor-to-ceiling, high-quality bookcases.
Reviewing the comps can provide a lot of insight about sales in your neighborhood. Physically viewing the properties can be even more eye-opening. Agents who routinely work in the neighborhood may have an excellent grasp of which homes will sell fastest. It's not a lucky guess.
They've been inside these homes and have seen the notable upgrades or the tragic flaws of a home. They also know which homes were foreclosures or short sales. Generally, a foreclosed home is in poor condition. However, a short sale can be in much better condition. Both of these sales are at discounted rates. So, if a comp is used from one of these types of sales, your agent will take careful consideration to evaluate the distinct differences that may increase the value and, ultimately, the listing price on your home.
Monday, January 23, 2012
What is the outlook on housing for 2012?
This is a question I get quite often. Where is the housing market going? I can tell you I have been running into multiple offer situations and homes that are priced correctly and in good condition are selling. The inventory in the Denver metro area is continuing to tighten. Coupled with low interest rates, it is helping many people get off the fence. We live in a great city where people want to be. There are more people moving here all the time and also businesses with higher paying jobs. Denver is a great place to call home!
CoreLogic’s chief economist Mark Fleming says housing statistics and the duration of the downturn to date indicate 2012 may be the year the housing market begins to turn the corner.
In the first release of CoreLogic’s new MarketPulse newsletter Wednesday, Fleming explained his rationale for such an assessment.
He notes that housing is an industry with long business cycles. Regional housing recessions have typically taken anywhere from three to five years to find their bottom, and Fleming says the national housing recession has behaved similarly in that it has bounced along a bottom for the past two years.
Fleming points out that housing affordability is rising dramatically due to a combination of home price deflation and rock-bottom mortgage rates. In fact, he says, after adjusting for inflation, this has been a “lost decade” for housing as prices are the same as at the beginning of the millennium.
“The time is right in 2012 for prices to begin growing again,” Fleming said, “and housing affordability will put a floor under any further significant declines.”
Fleming says he will be watching the spring and summer buying season closely for positive signs of demand.
He points out that households are paying off their debts and at the same time accessing credit more easily, with some even adding Home Equity Lines of Credit in the third quarter of last year – the first such movement for these second-lien mortgage products since the financial crisis began.
Fleming cites a quarterly survey by the New York Federal Reserve Bank, which shows total household debt continues to decline. At the same time, consumer sentiment rebounded strongly in the latter part of 2011, posting a six-month high in December – an indication that consumers’ confidence in the strength of the economy is growing, according to Fleming.
Most housing statistics basically moved sideways in the latter part of 2011, but Fleming finds several positives in the numbers. Although market indicators are coming off of very low levels, he notes that both existing-home sales and single-family housing starts have begun to increase, homebuilder confidence is improving, and affordability is at an all-time high.
Putting all of these statistics together suggests that while there is a very long way to go, the housing market is likely to sustain these upward movements in 2012, according to Fleming.
“While we cannot say with a high degree of certainty what 2012 has in store for us, indications based on the latter part of 2011 are that both the broad economy and the housing market are moving toward positive growth in 2012,” Fleming said.
He concedes that some impediments do exist, including slower global economic growth, a recession in Europe, and fiscal and political uncertainty in the United States.
But Fleming says when you look at the big picture, “we are bullish on the prospect of improving economic performance in 2012 from 2011.”
CoreLogic’s chief economist Mark Fleming says housing statistics and the duration of the downturn to date indicate 2012 may be the year the housing market begins to turn the corner.
In the first release of CoreLogic’s new MarketPulse newsletter Wednesday, Fleming explained his rationale for such an assessment.
He notes that housing is an industry with long business cycles. Regional housing recessions have typically taken anywhere from three to five years to find their bottom, and Fleming says the national housing recession has behaved similarly in that it has bounced along a bottom for the past two years.
Fleming points out that housing affordability is rising dramatically due to a combination of home price deflation and rock-bottom mortgage rates. In fact, he says, after adjusting for inflation, this has been a “lost decade” for housing as prices are the same as at the beginning of the millennium.
“The time is right in 2012 for prices to begin growing again,” Fleming said, “and housing affordability will put a floor under any further significant declines.”
Fleming says he will be watching the spring and summer buying season closely for positive signs of demand.
He points out that households are paying off their debts and at the same time accessing credit more easily, with some even adding Home Equity Lines of Credit in the third quarter of last year – the first such movement for these second-lien mortgage products since the financial crisis began.
Fleming cites a quarterly survey by the New York Federal Reserve Bank, which shows total household debt continues to decline. At the same time, consumer sentiment rebounded strongly in the latter part of 2011, posting a six-month high in December – an indication that consumers’ confidence in the strength of the economy is growing, according to Fleming.
Most housing statistics basically moved sideways in the latter part of 2011, but Fleming finds several positives in the numbers. Although market indicators are coming off of very low levels, he notes that both existing-home sales and single-family housing starts have begun to increase, homebuilder confidence is improving, and affordability is at an all-time high.
Putting all of these statistics together suggests that while there is a very long way to go, the housing market is likely to sustain these upward movements in 2012, according to Fleming.
“While we cannot say with a high degree of certainty what 2012 has in store for us, indications based on the latter part of 2011 are that both the broad economy and the housing market are moving toward positive growth in 2012,” Fleming said.
He concedes that some impediments do exist, including slower global economic growth, a recession in Europe, and fiscal and political uncertainty in the United States.
But Fleming says when you look at the big picture, “we are bullish on the prospect of improving economic performance in 2012 from 2011.”
Wednesday, January 4, 2012
How are metro Denver home sales at this time?
Happy New Year! I always think the new year brings new beginnings, new goals and new things to try. Below is an article from the Denver Post that I thought was beneficial in explaining what is happening with the metro real estate market at this time.
Metro Denver home sales edged up slightly last year compared with 2010, even as prices dropped.
Last year, 39,387 homes sold, up 1.5 percent from the 38,818 houses sold in 2010, according to an analysis of Metrolist data released Tuesday.
The median sale price dropped 2.13 percent to $230,000 for the year, from $235,000 in 2010.
However, the continuing story since the summer, according to real- estate experts, is sliding inventory. The number of homes on the market in metro Denver last month was the fewest in more than a decade.
"What strength we've had in pricing is due to the low inventory," said Chris Mygatt, president and chief executive of Coldwell Banker Residential Brokerage.
There were 12,531 homes on the market in December, down 33.6 percent from the same month in 2010, according to an analysis of Metrolist data. In 2000, the inventory hit a low of about 9,000, said independent real-estate consultant Gary Bauer.
"If it continues to drop, it's going to have a dramatic impact on the market," Bauer said. "Some people like to see a lower inventory because it increases prices, but I personally think it will reduce transactions."
In August, the number of metro Denver homes on the market dropped more than 20 percent from the year before, and the downward trend continued through the year.
Inventory is low not only because sellers take their homes off the market during the holidays but also because they never put them up for sale during the fall selling season.
"And the government influence on slowing down the foreclosure activity has taken that portion off the market," Bauer said.
Homes priced at less than $200,000 are getting multiple offers, and there's also been a surge in activity for homes priced above $500,000, Mygatt said.
"We've seen really solid activity at that price point ($500,000) for the last six months," he said. "Before we see real recovery in Colorado, we've got to see strength in the luxury market."
Metro Denver home sales edged up slightly last year compared with 2010, even as prices dropped.
Last year, 39,387 homes sold, up 1.5 percent from the 38,818 houses sold in 2010, according to an analysis of Metrolist data released Tuesday.
The median sale price dropped 2.13 percent to $230,000 for the year, from $235,000 in 2010.
However, the continuing story since the summer, according to real- estate experts, is sliding inventory. The number of homes on the market in metro Denver last month was the fewest in more than a decade.
"What strength we've had in pricing is due to the low inventory," said Chris Mygatt, president and chief executive of Coldwell Banker Residential Brokerage.
There were 12,531 homes on the market in December, down 33.6 percent from the same month in 2010, according to an analysis of Metrolist data. In 2000, the inventory hit a low of about 9,000, said independent real-estate consultant Gary Bauer.
"If it continues to drop, it's going to have a dramatic impact on the market," Bauer said. "Some people like to see a lower inventory because it increases prices, but I personally think it will reduce transactions."
In August, the number of metro Denver homes on the market dropped more than 20 percent from the year before, and the downward trend continued through the year.
Inventory is low not only because sellers take their homes off the market during the holidays but also because they never put them up for sale during the fall selling season.
"And the government influence on slowing down the foreclosure activity has taken that portion off the market," Bauer said.
Homes priced at less than $200,000 are getting multiple offers, and there's also been a surge in activity for homes priced above $500,000, Mygatt said.
"We've seen really solid activity at that price point ($500,000) for the last six months," he said. "Before we see real recovery in Colorado, we've got to see strength in the luxury market."
Sunday, December 11, 2011
What is happening with home prices at this time?
Home prices in metro Denver posted a year-over-year decline in September for the
15th consecutive month, and also slipped from the previous month, according to the latest S&P/Case-Shiller Home Prices Index, released Tuesday.
Denver area prices declined 0.8 percent in September from August, the first month-to-month decline in home prices in six months, the closely followed Case-Shiller report said.
Denver home prices rose 0.4 percent in August from the previous month, were flat in July but rose in April, May and June from the previous months, with increases ranging from 1.4 to 1.6 percent. Before that came 10 straight months of price declines from the previous month.
Over the year, Denver prices in September were down 1.5 percent from September 2010 levels, down a bit from August’s 1.6 percent year-over-year decline.
The prices are for resales of stand-alone single-family homes only, not new construction or condominiums.
Denver’s month-over-month decline in September was slightly greater than the 0.6 percent drop for a composite of the 20 cities tracked in the monthly Case-Shiller reports. Of those cities, only New York, Portland and Washington saw price rises.
For the full 12 months ending in September, the 20-city composite price dropped 3.6 percent. Only Washington saw a rise (1 percent) in that period; the biggest declines were in Atlanta (down 9.8 percent), Minneapolis (down 7.4 percent) and Las Vegas (down 7.3 percent).
David M. Blitzer, chairman of the Index Committee at S&P Indices, said in the report that “the plunging collapse of prices seen in 2007-2009 seems to be behind us.”
But he added: “Any chance for a sustained recovery [in prices] will probably need a stronger economy.”
The report assigns index values to the 20 cities based on current average home prices in relation to what they were in January 2000.
Denver’s index for September was 125.44, meaning that prices were 25.44 percent higher than they were in January 2000. The 20-city average index was 141.97 for September.
Each month from October 2009 through June 2010, the Case-Shiller report showed year-over-year increases in Denver-area home prices. That ended in July 2010.
Before October 2009, Denver saw 36 straight months of year-over-year price declines, peaking at a 5.7 percent drop in February 2009 from the year before.
Case-Shiller is one of several popular measures of home prices, using different methodologies, covering different housing types and giving different results.
A Nov. 8 report from Denver-based Integrated Asset Services said that the median single-family house price in metro Denver declined 1.6 percent in the third quarter from the same period of 2010, although it was up 1.7 percent from the second quarter of this year.
15th consecutive month, and also slipped from the previous month, according to the latest S&P/Case-Shiller Home Prices Index, released Tuesday.
Denver area prices declined 0.8 percent in September from August, the first month-to-month decline in home prices in six months, the closely followed Case-Shiller report said.
Denver home prices rose 0.4 percent in August from the previous month, were flat in July but rose in April, May and June from the previous months, with increases ranging from 1.4 to 1.6 percent. Before that came 10 straight months of price declines from the previous month.
Over the year, Denver prices in September were down 1.5 percent from September 2010 levels, down a bit from August’s 1.6 percent year-over-year decline.
The prices are for resales of stand-alone single-family homes only, not new construction or condominiums.
Denver’s month-over-month decline in September was slightly greater than the 0.6 percent drop for a composite of the 20 cities tracked in the monthly Case-Shiller reports. Of those cities, only New York, Portland and Washington saw price rises.
For the full 12 months ending in September, the 20-city composite price dropped 3.6 percent. Only Washington saw a rise (1 percent) in that period; the biggest declines were in Atlanta (down 9.8 percent), Minneapolis (down 7.4 percent) and Las Vegas (down 7.3 percent).
David M. Blitzer, chairman of the Index Committee at S&P Indices, said in the report that “the plunging collapse of prices seen in 2007-2009 seems to be behind us.”
But he added: “Any chance for a sustained recovery [in prices] will probably need a stronger economy.”
The report assigns index values to the 20 cities based on current average home prices in relation to what they were in January 2000.
Denver’s index for September was 125.44, meaning that prices were 25.44 percent higher than they were in January 2000. The 20-city average index was 141.97 for September.
Each month from October 2009 through June 2010, the Case-Shiller report showed year-over-year increases in Denver-area home prices. That ended in July 2010.
Before October 2009, Denver saw 36 straight months of year-over-year price declines, peaking at a 5.7 percent drop in February 2009 from the year before.
Case-Shiller is one of several popular measures of home prices, using different methodologies, covering different housing types and giving different results.
A Nov. 8 report from Denver-based Integrated Asset Services said that the median single-family house price in metro Denver declined 1.6 percent in the third quarter from the same period of 2010, although it was up 1.7 percent from the second quarter of this year.
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