Thursday, September 20, 2012

Highest growth in home prices found in metro Denver and northern Colo.

According to to most recent Zillow Home Values report, home values as measured by Zillow were up from July 2011 to July 2012 in Denver, Colorado Springs, Ft. Collins, Grand Junction and Boulder metros. Prices were down in the Pueblo metro.

Home values in the United States were up in July, increasing 1.2 percent from July 2011 to July 2012. 

The year-over-year changes for Colorado metros were:

Change from July 2011 to July 2012 (in %):
Colorado statewide: +3.6
Boulder +2.8
Colo Springs +2.2
Denver metro +6.7
Ft. Collins +3.8
Grand Junct +2.6
Greeley +3.7
Pueblo -4.2

As can be seen in the graph, in recent years home values have shown the most stability in Boulder, Fort Collins and in Denver metro, and those three metros also have the highest values.

The Zillow home values in July 2012 for each metro area are (in $s): 

Colorado 206,200
Boulder 310,000
Colo Springs 185,000
Denver metro 217,100
Ft. Collins 222,900
Grand Junct.161,900
Greeley 161,000
Pueblo 99,400

Not surprisingly, Boulder has the highest home value level and Pueblo has the lowest. The largest decline in home values in recent years is seen in the Grand Junction area where home values have declined from about 220,000 to 160,000 since 2007. Price declines in other Colorado metros have been more mild as can be seen in the graph.

This report echoes other reports on home prices, such as Case-Shiller which continues to show accelerating home prices due to constricted supply and ongoing household formation. The highest values and most growth tend to be in metro Denver and northern Colorado while the lower prices and smallest growth rates tend to be in southern Colorado and the Grand Junction area.

Zillow home valuations, known as the median "Zestimate valuation" should be taken with a grain of salt, but in this case they do appear to be in line with other home price indices and trends.