Monday, January 16, 2012

LPS home price index: Denver home prices fall 1.9 percent in October

According to the LPS Home Price Index for October, released last week, the average house price in the Denver area fell 1.9 percent from October 2010 to October 2011. The average price rose 0.3 percent from January 2011 to October 2011. The average house price in the Denver area during October 2011 was $220,000, which is the 11th-highest average price among the 25 cities surveyed. In Denver, the average price peaked during Jun of 2007.

Nationally, the average house price fell 4.8 percent form October 2010 to October 2011, dropping to $200,000. The average price fell 0.8 percent form January 2011 to October 2011. Nationally, the average house price peaked during June of 2006.

Six metro areas reported either gains or smaller declines than were reported in the Denver area, including Boston, Cincinnati, Detroit, Honolulu, Miammi and Pittsbugh. All other areas reported larger declines than Denver.

According to the LPs press release:

"'While Michigan continues to show notable improvements in home prices, with significant price increases each month this year, Georgia is emerging as the region with the greatest difficulty recovering from the home-price meltdown,' observed Kyle Lundstedt, managing director for LPS Applied Analytics."

This report shows few surprises when compared to other home price indices such as the FHFA's report and the Case-Shiller index. The Denver area continues to show more stability in prices than most metro areas surveyed and continues to show smaller declines in prices than the nation as a whole. A 1-year decline of 1.9 percent is similar to the price changes shown by the Case-Shiller index and the Corelogic index. In both, prices are largely flat, although have continued to show slight declines, year over year.

See here for the home price archives.