Wednesday, March 6, 2013

Realtor data shows ongoing price increases in metro Denver, Pikes Peak and statewide

Median home prices for single-family homes during December 2012 were up in metro Denver, the Pikes Peak region, and statewide.  According to median home price data for December, released by the Colorado Association of Realtors, the median home price for single-family homes in the Denver area was $254,773 during December, which is an increase of 10.5 percent from December of 2011. It also shows that since August, the median home price in the Denver area has essentially been back at peak levels, when accounting for seasonality. Statewide, the median home price was $215,662 during December, an increase of 3.7 percent from the same month last year. The median price in the Pikes Peak region rose 11.3 percent, year over year, rising to $208,015 during December. (The values presented here are 3-month moving averages for each month)

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 eight months. Metro Denver has seen the largest increases, in most cases. The price increases reflect price changes seen in other indices as well, such as Case-Shiller and Corelogic.  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.

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.