This article discusses single-family median home prices only.
The first graph shows the median single-family home price for the state and for the metro Denver and Pikes Peak regions. Median home prices fell dramatically in all three measures following the financial crisis of late 2008, but moved back up quickly by mid-2009. In recent months, prices have begun to move upward at a significant pace.
The metro Denver area has now surpassed peak levels reached during August of 2007, and is up by 2 percent. However, the statewide median price is now 11.5 percent below its August 2008 peak. The Pikes Peak median price rose in August to 14 percent below its July '05 peak.
The second graph shows that year over year changes in the median prices have been positive in all three regions for the past four months. These changes have been a bit larger than was the case in the Case-Shiller and Corelogic home price indices. The Case-Shiller and Corelogic indices, for example have shown year-over-year increases in prices ranging from 4 percent to 7 percent in recent months. See here for more.
After numerous increases in home sales activity during late 2011 and early 2012, home prices finally began to show significant positive change in response by the Spring of 2012. Demand also continues to be helped by low interest rates and by ongoing Federal Reserve actions to increase liquidity in home lending, as with QE3. This increases the money supply however, which will impact general prices, and thus disposable income, for prospective home buyers in the future.
The home price data provided by the Colorado Association of Realtors is based on home sales transactions that are listed in the MLS systems for each area and do not include for-sale-by-owner transactions or new homes sold directly by home builders.
