In December of 2012, the much anticipated monthly Case Schiller report for October was released. It contained more good news for metro Denver real estate. The Case Schiller Index, from Standard & Poor’s, indexes home prices in twenty major metropolitan areas compared to what they were at the very inception of the new millennium, in January 2000. It excludes new construction, as well as condominiums. Only stand-alone single-family home resales are included.
So, what’s the report say about the metro Denver real estate market? Denver’s October index number was 134.03, essentially level compared to September, when the index stood at 134.01. When prices are seasonally adjusted, Denver’s prices show a 0.5 percent gain from September.
The overall rebound in Denver area home prices is evident in the index numbers. The highest index figure reported was 140.28 in August of 2006. Now, with an October index of 134.03, the numbers are at least within sight of those from prior to the 2008 recession.
And how is Denver doing in relation to the other 19 markets tracked by Case Schiller? Very well, in fact. The twenty large markets tracked averaged a 4.3 percent gain in October, year-over-year. Denver metro area home prices rose 6.9 percent in October, year-over-year, more than half again higher than the national average.
With the continued advance in home prices in October, metro Denver extends its streak of consecutive months with year-over-year gains to ten.
What’s the renewed strength in Denver residential real estate mean for buyers and sellers? There are benefits for both, in part because of continued record-setting low mortgage rates. Sellers that wanted to move, but sat tight through the recession, are now more confident about listing their homes and getting decent prices for them.
Buyers are also more confident than in years. Price increases sustained over a good number of months suggest that they are more likely to be looking at investing in appreciating assets. And, financing such purchases with low-interest mortgages makes for an even better opportunity in the eyes of many buyers.
With a return of confidence on the part of both buyers and sellers, the market is stabilized even further. This, coupled with positive job prospects in many sectors in the Denver area, bodes well for area real estate.
We’d welcome the opportunity to speak with you and to understand your goals, whether you are buying or selling. For professional and friendly assistance, please contact us today.