Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

Denver shows home-price resilience

By John Rebchook, Rocky Mountain News (Contact)

Published April 29, 2008 at 9:12 a.m.
Updated April 29, 2008 at 9:12 a.m.

Text size  

More Real Estate

More stories »

Denver home prices fell 5.5 percent over the 12-month period that ended in February, which is less than half the 12.7 percent drop from 20 cities in the much-watched S&P/Case-Shiller National U.S. Home Price Index.

Only five cities outperformed Denver during that period. Charlotte, N.C., was the only city to post a gain, at 1.5 percent.

Other cities that were stronger than Denver included: Portland, with a 2 percent drop; Seattle, down 2.78 percentp; Dallas, off 4.1 percent; and Boston, minus 4.6 percent.

Las Vegas and Miami continued to have the weakest markets over the pat 12 months, dropping by 22.8 percent and 21.7 percent, respectively.

Phoenix also showed a large drop, down 20.8 percent.

In addition, Denver showed a 1.1 percent decline from January to February, compared with a 2.6 percent drop for all 20 metropolitan statistical areas in the survey.

And from December to January, Denver showed a 1.5 percent reduction, compared with an overall fall of 2.4 percent.

Seventeen of the 20 metropolitan areas posted record annual declines, 10 of them in double digits.

“There is no sign of a bottom in the numbers,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “Prices of single-family homes continue to drop across the nation. All 20 metro areas were in the red for the February-over-January reading.”

Comments

  • April 29, 2008

    10:49 a.m.

    Suggest removal

    bookwerm writes:

    The large price gains that other markets saw from 01 to 06 passed Denver by. Part of the reason why is that Denver area had HUGE price run ups in the late 90s, and the Internet bubble pop hit here harder and longer.. so that was a mixed blessing here. Sadly, some of that run up in the 90s is ALSO unsupportable and was also driven by subprimes and ARMS.. Denver was one of the first markets where that went crazy! But thankfully the ARMS adjusted long enough ago that many of the buyers sold out, refid to fixed etc. so do not have as MANY in ARMS, and the house prices are not as fluffy as Vegas, AZ, etc.

    Much of the price rise in the 90s WAS supportable though, due to it coming of the major crash in the 80s, ANd this area becoming more desireable and developed.. so all indications are that, while prices WILL still be flat to down mostly, they should not crash to heck and gone like in Florida etc.

    Keep in mind that a greater percentage of the population in Denver area was employed in High tech than in Silicon Valley in 01!.. not more total, but less diversity, that bubble pop hit hard! we are now recovering, hopefully really getting going with renewable energy companies, along with old style petro.

    T

  • April 29, 2008

    1:26 p.m.

    Suggest removal

    Diff writes:

    Cant agree total with your price gains fro 01 to 06 bookwerm -
    My home in near Broomfield was up over 20% in that period..
    but we are luck to be doing better than the average considering the higher than average increases of the past 15 - 20 years.
    It's a correction and believe it was overdue. most peoples who have been in there current home for 5 year or so are still ahead of what they bought at, the loose is on paper only-
    And While the numbers of home going into foreclosure has increased (those numbers make good headlines) the over percent of homes in forclosure is less than 1%
    That never makes the news --

  • April 29, 2008

    3:29 p.m.

    Suggest removal

    Harvey76 writes:

    Does anyone know how they come up with these numbers? The homes in my neighborhood are still selling, not sitting on the market too long, and getting good prices. I have a feeling that all of the houses in those developements that were slapped together on the outskirts of town are skewing the numbers.

  • April 30, 2008

    10:35 a.m.

    Suggest removal

    Ztliano writes:

    I bought my townhome for half of what it costs.