Case-Shiller: Denver home prices rise 9.2% | Inside Real Estate News

This 2,361-square-foot home in Denver is on the market for $365,000.

Highlights:

• Case-Shiller shows Denver home prices rise 9.2% YOY.
• Overall increase for 20 MSAs was 8.1% in January.
• Denver prices up 34% since 2000.

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Denver-area home prices rose 9.2 percent in January, according to the closely watched Case-Shiller index.

That was the biggest year-over-year percentage gain since September 2001, when Denver-are prices were up 9.93 percent on a year-over-year basis, according to the S&P/Case Shiller Home Price Indices, which tracks 20 major metropolitan statistical areas in the U.S.

?A 9 percent increase is nothing short of spectacular, said Peter Niederman, CEO of Kentwood Real Estate.

Overall, Denver ranked 10th of the 20 MSAs in the country, as far as year-over-year appreciation.

The overall increase for the 20 markets was 8.1 percent.

Niederman noted for a long stretch of time, Denver was in the top five markets. In January 2012, for example, Denver was ranked No. 3 by Case-Shiller, with a 0.2 percent, year-over-year gain.

?I?m glad we are no longer in the top five,? he said. ?This means there is a nationwide recovery, instead of just Denver and two or three other cities across the country. A rising tide raises all boats, as they say. This tells me we are seeing a housing recovery all across the country.?

Phoenix, one of the nation?s hardest hit markets, let the nation in January, with a 23.2 percent year-over-year gain.

?Denver does not have these huge swings from peak to trough,? Niederman said. ?If we did, I would be worried about a bubble.?

He said Denver may be in the second year of a seven-to 10-year improving market.

?It feels like it,? Niederman said. ?It seems like we historically have these seven to 10-year cycles. We could be near the beginning of a long, sustainable strong market for housing.?

One extremely positive thing about the Denver market is that it is improving across the board, said Lane Hornung, president and founder of 8z Real Estate.

?Home price appreciation is accelerating in our market,? Hornung said.

?We did not quite reach double digits, but the seasonally adjusted index is at 9.1 percent year over year appreciation and 10 percent is in sight,? Hornung said.

?Price increases are wide-spread, from core neighborhoods out to the suburbs, and evident in all price segments,? he said.

However, there were only 6,786 homes unsold homes on the market in February, according to an earlier report by Metrolist. That marked a 32.7 percent decline from the 10,068 unsold homes in February 2012.

?Unfortunately, inventory levels are dropping, not rising, as demand continues to far outstrip supply,? Hornung said. ??Frankly, it?s getting a bit kooky out there in the market.?

Independent broker Gary Bauer, said the latest Case Shiller report ?is good, positive news,? for the Denver-area market.

?It?s interesting that we?ve got a record (price appreciation) going back to 2001,? Bauer. ?The other interesting thing is that a 9 percent gain puts us in the middle of the pack. Once again, Denver never had the tremendous highs or the tremendous lows of other markets.?

He said the Denver housing market is ?extremely strong with a lot of pent-up buyer demand. Homeowners are looking hard at putting their homes on the market and good share of them are doing that and listing their homes.?? However, that does not appear to be easing the incredible housing shortage.

?Homes that are coming on the market are being gobbled up fast,? Bauer said.

Niederman said one reason that there is so much pent-up demand that some people who lost their homes in foreclosures or short sales starting in 2009, are returning to the market.

Typically, people who lost their homes in a distressed situation have to wait three years before they can qualify for another mortgage, he said. That means last year was the first year they could re-enter the market since the housing recession began.

?The subset of the market who lost their homes from 2009 to 2011, could start returning to the market through 2014,? Niederman said. ?Of course, not all of those people will want to or be able to return to the market, but I think some of them will.?

During the foreclosure crisis, one housing counselor said almost everyone who lost a home looked forward to re-entering the market when their financial situation and credit history improved.

Nationally, the housing market put in its best performance since 2006.

?The two headline composites posted their highest year-over-year increases since summer 2006,? says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. ?This marks the highest increase since the housing bubble burst.

?After more than two years of consecutive year-over-year declines, New York reversed trend and posted a positive return in January. The Southwest (Phoenix and Las Vegas) plus San Francisco posted the highest?annual increases; they were also among the hardest hit by the housing bust. Atlanta and Dallas recorded their highest year-over-year gains.

?Economic data continues to support the housing recovery. Single-family home building permits and housing starts posted double-digit year-over-year increases in February 2013. Despite a slight uptick in foreclosure filings, numbers are still down 25 percent year-over-year. Steady employment and low borrowing rates pushed inventories down to their lowest post-recession levels.?

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.

Month	How Denver ranked out of 20 MSAs	1-Year Change
January 2010	6	2.6%
February	5	3.6%
March	7	4.1%
April	8	4.4%
May	8	3.6%
June	9	1.8%
July	11	-0.1%
August	11	-1.2%
September	9	-3.1%
October	7	-1.8%
November	6	-2.5%
December	7	-2.4%
January 2011	6	-2.3%
February	5	-2.6%
March	7	-3.8%
April	6	-4.1%
May	5	-3.3%
June	3	-2.5%
July	4	-2.1%
August	3	-1.6%
September	5	-1.5%
October	4	-0.9%
November	3	-0.2%
December	2	-0.4%
January 2012	3	0.2%
February	4	0.5%
March	3	2.6%
April	4	2.8%
May	3	3.7%
June	4	4.0%
July	4	5.4%
August	5	5.5%
September	6	6.7%
October	7	6.9%
November	8	7.8%
December	10	8.5%
January 2013	10	9.2%

Metropolitan Area	Change from January 2000	December-January Change	1-Year Annual Change
Atlanta	-3.0%	1.0%	13.4%
Boston	53.8%	0.0%	4.0%
Charlotte	15.15%	0.2%	6.0%
Chicago	11.62%	-0.9%	3.3%
Cleveland	0.07%	-0.5%	4.8%
Dallas	20.51%	0.0%	7.0%
DENVER	34.17%	0.0%	9.2%
Detroit	-19.99%	-0.9%	13.8%
Las Vegas	4.04%	1.6%	15.3%
Los Angeles	80.23%	0.9%	12.1%
Miami	53.51%	0.8%	10.8%
Minneapolis	24.95%	-0.5%	12.1%
New York	61.64%	0.1%	0.6%
Phoenix	26.69%	1.1%	23.2%
Portland	40.74%	-0.4%	8.3%
San Diego	63.28%	-0.6%	9.8%
San Francisco	47.45%	0.1%	17.5%
Seattle	41.30%	-0.3%	8.7%
Tampa	35.20%	0.9%	8.9%
Washington, D.C.	87.42%	-0.7%	5.9%
Composite -10	58.72%	0.2%	7.3%
Composite - 20	46.14%	0.1%	8.1%

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Source: http://insiderealestatenews.com/2013/03/case-shiller-denver-home-prices-up-9-2/

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