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Colorado homes hit new highs

Highlights:

  • CoreLogic releases February report.
  • Colorado home prices rise to record levels.
  • State’s home appreciation 8.7%.

CoreLogic.February-6Colorado’s housing market was one of a handful of states  to reach new highs in February according to a national report released today.

The report by CoreLogic, a property information and analytics firm, Colorado experienced record housing prices in February, while trailing the national year-over-year appreciation gains.

Colorado single family home prices, including distressed sales, rose by 8.7 percent in February, compared with February 2013. Most local real estate experts agree double-digit appreciation in Denver would neither be desirable nor sustainable for the longterm, as it would make home prices unaffordable to many consumers.

The Denver-Aurora-Lakewood metropolitan area out-performed the overall state, with all homes rising 9.7 percent in February from February 2013. When distressed homes are not included, the Denver-area showed a 7.6 percent year-over-year gain.

The national year-over-year increase was 12.7 percent, according to CoreLogic. When distressed properties were excluded, prices rose by 7.1 percent and 10.7 percent, in Colorado and the U.S., respectively.

Nationally, the February gain represents 24 months of consecutive year-over-year increases in home prices.

Denver and Dallas were the first two markets in the country to top pre-recession prices.

In addition to Colorado, markets to hit new highs in February included Nebraska, North Dakota, Texas and the District of Columbia, according to CoreLogic.

CoreLogic ranked Colorado 18th for appreciation in February, when distressed properties are included.

In the Denver area and across the country, the low inventory of homes is expected to boost home prices.

“As the spring home-buying season kicks off, house price appreciation continues to be strong,” Mark Fleming, chief economist for CoreLogic, said, speaking about the national market.

“Although prices should remain strong in the near term due to a short supply of homes on the market, price increases should moderate over the next year as home equity releases pent-up supply.”

Anand Nallathambi, president and CEO of CoreLogic, said the housing market’s strength should continue.

“February marks two straight years of year-over-year gains in national prices across the United States,” Nallathamb said.

“The consistent upward movement in home prices should ultimately prove to be an important stimulant for higher levels of sustained market activity and growth in the housing economy.”

Have a story idea or real estate tip? Contact John Rebchook at  JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.