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Denver home prices up 9%

Highlights:

  • CoreLogic releases May report.
  • Colorado ranked 13th in the nation.
  • Denver single-family home prices up 9%
Snapshot showing how Colorado stacks up to other states.

Snapshot showing how Colorado stacks up to other states.

Colorado single-family home prices in May rose 8.6 percent from May 2013, not far off the national average year-over year gain of 8.8 percent, according to a nationwide report released on Tuesday.

The Denver-Aurora-Lakewood area did even better, with all single family home prices rising 9 year percent year over year, according to CoreLogic.

The trends were similar to an earlier May report by Metrolist, which uses a different methodology than CoreLogic.

CoreLogic tracks repeat sales of homes in metro areas across the country. CoreLogic owns Case Shiller, which also tracks the repeat sales of homes in 20 of the largest metropolitan statistical areas in the country.

Metrolist, the largest multiple serving listing, or MLS,  in Colorado, tracks homes sold by all of its members.

In May, the average sold price of a single-family home $363,028, up 11 percent from $335,278 in May 2013, according to Metrolist.

The median, or middle, price of a single-family detached home rose 9 percent to $305,000 from $284,350 in May 2013, Metrolist reported last month.

CoreLogic did not report the actual home sale prices for the Denver in May, but its index of home values showed that Denver home prices set a record in May, as it has done every month of this year.

Colorado was one of 10 states where home prices set highs in May, according to CoreLogic. The other nine states were Alaska, Louisiana, Oklahoma, Nebraska, Iowa, South Dakota, North Dakota, Texas and New York.

“It sounds like what CoreLogic is consistent with what other groups are reporting,” said independent broker Gary Bauer. “The trend is the important thing and CoreLogic is showing a trend that is similar to other reports.”

Bauer said he likes where Colorado ranks nationally.

“It is really great to be in the top 15,” Bauer said.

“It is great not to be No. 1 and not to be No. 50. We have a strong market here in Denver, but we do not want appreciation to go through the roof,” Bauer continued. “In the long run, that would adversely impact the market.”

The biggest problem in the Denver area is not a lack of demand, but a lack of supply, according to Bauer and others.

“A shortage of active listing and homes available is on the minds of everyone – Realtors, home buyers, prospective sellers, loan officers, title insurance companies.”

Nationally, Hawaii showed the highest year-over-year appreciation, with homes rising 13.2 percent for all single-family homes.

When distressed homes were excluded, New York showed the largest percentage gain, with values jumping 12.2 percent.

Nationwide, single-family home prices rose by 8.1 percent when distressed properties were excluded. In Colorado, prices rose by 7.0 percent and in the Denver by 7.65 percent, when distressed properties were excluded.

Overall, home prices were up the 27th consecutive month in May on a year-over-year basis, according to CoreLogic.

`“The pace of home price appreciation is cooling off quickly as the weather warms up,” said Mark Fleming, chief economist for CoreLogic.
“May’s 8.8 percent year-over-year growth rate is down almost three percentage points from just three months ago,” Fleming continued.

“The influences of modestly rising inventory and less-than-expected demand are causing price growth to moderate toward our forecasted expectations.”

“Home prices are continuing to climb across most of the country which has both positive and negative implications for the housing market,” said Anand Nallathambi, president and CEO of CoreLogic.

“While the rapid rise in prices over the past two years has lifted many homeowners out of negative equity, it has also become a negative factor in buying decisions for prospective purchasers weighing affordability concerns,” Nallathambi said.

“As we move ahead, a moderation in home price increases over the next 12 months should help cool things down a bit and keep the housing recovery going.”

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.