Denver home prices decline, but less so than most other cities

Denver Business Journal – by Mark Harden

Date: Tuesday, March 29, 2011, 11:51am MDT

For the seventh straight month, the Denver area saw a year-over-year home-price decline in January, but the drop was not as severe as the average for 20 large U.S. markets, according to the latest S&P/Case-Shiller Home Prices Index, released Tuesday.

Overall, the closely-watched report from Standard & Poor’s presented a bleak outlook for the nation’s homesellers on price.

“Keeping with the trends set in late 2010, January brings us weakening home prices [nationwide] with no real hope in sight for the near future” David M. Blitzer, chairman of the Index Committee at S&P, said in the report.

In Denver, average prices were down 2.3 percent in January from the same month of 2010, and down 1.1 percent from December 2010, the Case-Shiller report said.

That followed year-over-year price declines of 2.4 percent in December, 2.5 percent in November, 1.8 percent in October and 1.6 percent in September.

Denver’s January decline was below the 3.1 percent average decline for 20 cities tracked by the Case-Shiller report.

Fourteen of the 20 cities saw year-over-year price drops greater than Denver’s. The biggest declines were in Phoenix (down 9.1 percent), Detroit (down 8.1 percent) and Portland (down 7.8 percent).

Only Washington and San Diego out of the 20 cities saw price gains over the 12-month period, up 3.6 percent and 0.1 percent respectively, the report said.

The report assigns index values to the 20 cities based on current average home prices in relation to what they were in January 2000.

January’s index for Denver was 122.73, meaning that prices were 22.73 percent higher than they were in January 2000. The 20-city average index was 140.86 for January.

Each month from October 2009 through June 2010, the Case-Shiller report showed year-over-year increases in Denver-area home prices. That ended last July.

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.

As for month-over-month price changes, the report says Denver prices declined 1.1 percent between December and January, slightly over the 20-city average of 1 percent.

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.

mharden@bizjournals.com

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About dherries
Dave and Sally Herries and The RealtyColorado Team - Real Estate Broker serving the metro-Denver area. Offering properties in urban, sub-urban and rural areas. Our mission statement is "Enriching lives through real estate."

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