Tuesday, December 4, 2012

Corelogic: Colorado home prices up 7.3 percent

Corelogic's home price index for Colorado increased year over year for the tenth month in a row during October 2012, increasing to the highest growth rate seen since the beginning of the recession in 2008.

Colorado showed a 7.3 percent increase from October 2011 to October 2012. The October HPI report, released today by Corelogic, shows the national HPI rising by 6.3 percent, year over year. Over the past four months, the year-over-year change in the HPI has flattened out, but remains at a robust growth rate at or above 7 percent. Continued inventory shortages and continued population growth are likely driving continued increases. An addition, in the short term, low interest rates and loose monetary policy are likely to continue pushing up home prices as  interest rates remain at historic lows.

Annual declines were common after 2009, although the trend in declines was interrupted briefly by the homebuyer tax credits which created some annual gains in the HPI in Colorado and nationally from late 2009 to mid-2010.

See the home price archive for comparisons with other indices.

The CoreLogic HPI shows that, nationally, home prices have not increased as much as in Colorado, which was expected. Single-family home production in Colorado remains at some of the lowest levels seen in decades, and in the face of stable population growth, single-family home prices continue to climb.

In the October report, only 8 states reported larger year-over-year increases than Colorado. The states with the largest increases were Arizona and Hawaii with increases of 21.3 percent and 13.2 percent, respectively. Idaho, Nevada, Utah, North Dakota, California and Montana also reported larger increases than Colorado.  Four states showed declines in prices. The states with the largest declines in the home price index were Illinois and Delaware, both with drops of 2.7 percent.