Report from Case-Shiller
Metro Denver has maintained a torrid pace of year-over-year gains in home-resale prices for another month, although at a slightly lower growth rate than previous months.
That’s according to the latest monthly S&P/Case-Shiller Home Prices Index report, issued Tuesday.
The latest report, covering December, shows resale prices of detached single-family homes in the Denver area up 10.2 percent from a year earlier.
That followed slightly larger 12-month increases of 10.9 percent for each of the previous three months, 10.7 percent in August and 10.3 percent in July.
Still, it’s the latest in a string of year-over-year home-resale price gains over 10 percent in the Denver area reaching back to early 2015.
December’s 10.2 percent year-over-year rise in Denver-area resale prices was nearly twice the national gain, according to the closely followed Case-Shiller report series from S&P Dow Jones Indices and CoreLogic.
The yearly gain rate topped all but two other major cities: Portland (up 11.4 percent) and San Francisco (up 10.3 percent).
In December, the average 12-month price increase among 20 major cities tracked by Case-Shiller was 5.7 percent, and the national average increase was 5.4 percent.
The smallest year-over-year gains in the 20 cities were in Washington (up 1.7 percent), Chicago (up 2.4 percent) and Cleveland (up 2.8 percent).
As for month-to-month price changes, Denver home-resale prices were flat in December from a month earlier, not seasonally adjusted, following November’s 0.1 percent gain, the Case-Shiller report said.
The 20-city average monthly change in December was also flat; prices nationally rose 0.1 percent.
(After seasonal adjustment, Denver prices rose 0.7 percent in December from the previous month. The seasonally adjusted 20-city gain was 0.8 percent month to month.)
Denver’s Case-Shiller home price index reached 174.34 in December.
An index reading of 174.34 means that local home resale prices averaged 74.34 percent higher than they were in the benchmark month of January 2000, according to the Case-Shiller report series, based on non-seasonally-adjusted data.
Denver has seen increases in its home price index every month since February 2014.
David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, said that while home prices continue to rise across the nation, “the pace is slowing a bit.”
“Sparked by the stock market’s turmoil since the beginning of the year, some are concerned that the current economic expansion is aging quite rapidly,” he said. “The recovery is six years old, but recoveries do not typically die of old age. Housing construction, like much of the economy, got off to a slow start in 2009-2010 and is only now beginning to show some serious strength. Continued increases in prices of existing homes … should encourage further activity in new construction.”
Eric Thompson, president of Windermere Services Colorado, a residential real estate brokerage in Centennial, told the DBJ’s Molly Armbrister recently that a “tapering” of Denver’s home-price growth can be expected in the months ahead.
Case-Shiller numbers for metro Denver cover a 10-county area: Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties.
The Case-Shiller index is compiled by comparing matched-price pairs for thousands of single-family homes in each market. Prices are for resales of stand-alone single-family homes only, not for new construction or condominiums, and are meant to reflect price changes for comparable home inventory. Case-Shiller does not report actual home sales prices.
Case-Shiller is one of several popular measures of home prices, using different methodologies, covering different housing types and geographical areas, and giving somewhat different results. The index report is produced by S&P Dow Jones Indices, a subsidiary of McGraw-Hill Financial.