Denver's housing market best in 20 cities from May to June
By John Rebchook, Rocky Mountain News (Contact)
Originally published 09:31 a.m., August 26, 2008
Updated 09:31 a.m., August 26, 2008
The Denver-area housing market from May to June, showed the most appreciation of 20 metropolitan areas tracked by the closely watched S&P/Case-Shiller Home Price Indices.
The Denver area showed a 1.5 percent gain in that period. Boston, with a 1.2 percent increase, was the only other metropolitan area to show an increase
The average percentage change in that one-month period was a loss of 0.5 percent for all 20 cities, and a 0.6 percent drop for 10 of them.
Both Denver and Boston have shown three consecutive months of positive returns.
For the year ending in June, Denver homes showed a 4.7 percent decline, the third best of the 20 cities.
Only Charlotte, N.C., with a 1 percent drop, and Dallas, with a 3.2 percent drop, fared better.
Phoenix was the worst performer, where home values fell by 27.9 percent.
Overall, the 20 city composite showed a 15.9 percent drop from June 2007 to June 2008, while the composite of 10 of the cities showed a 27 percent drop.
"While there is no national turnaround in residential real estate prices, it is possible that we are seeing some regions struggling to come back, which has resulted in some moderation in price declines at the national level," said David M. Blitzer, chairman of the Index Committee at Standard & poor's.
"Depending on where you focus the details of the report, you can see some different stories on where home prices are headed. Record year-over-year declines were reported in both the 10-city and 20-city composites in June; however, they are very close to the values reported in May. The rate of home price decline may be slowing."
Some observers, such as Lou Barnes, principal of Boulder West Financial in Boulder, believes the study over-states the health of the real estate market.
Barnes argues that because there are a large number of distressed homes on the market – foreclosures and short sales, a sale in which the lender takes less than the mortgage amount – that has lowered the overall value of markets sold.
In other words, if you do not have to sell your home in today's market, you probably will not
That leads to a disproportionate amount of homes being sold that are in trouble at lower prices, driving down average and median prices, according to Barnes.
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August 26, 2008
10:58 a.m.
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robertzimmerman writes:
"Phoenix was the worst performer, with homes losing 27.9 percent of there value."
Unbelievable. Does the RMN not have copy editors?
August 26, 2008
3:25 p.m.
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fmikey writes:
Thank you robertzimmerman for emphasizing the petty, while apparently asserting that you have never made an honest mistake in your life. We are honored to have you among us....
August 26, 2008
7:14 p.m.
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redhead68 writes:
@ fmikey...The RMN is not a blog. It's a publication that employs professionals who should be able to write using proper grammar.
As far as the article's point is concerned, eh, I'm not impressed. It's nice to see some signs of stabilization, but the credit markets are still a disaster. I think we'll be digging out of this one for a long time. My condolences to anybody who must sell. You're in for a rough ride.
August 26, 2008
8:45 p.m.
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WarrenJimmyBuffett writes:
Deadcat bounce. People are hoping that Denver is turning around. Too bad hope doesn't analyze the numbers. Denver is still way overbuilt and crushed by foreclosures.
August 26, 2008
10:08 p.m.
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denvernorthwest writes:
warren, stop pedaling your fear on every real estate post. Obviously you made a bad real estate decision and now you are trying to make it everyones problem. Every persons real estate situation is different. Yes, there are some people hurting out there but there are some people making a killing, especially in NW Denver , Wash Park & downtown. Denver is a great place to live and that is not going to change. The market will absorb the inventory in due time and the good times will roll. Probably not this year but I wouldn't be surprised to see solid gains next year.
August 27, 2008
11:08 a.m.
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can_do writes:
Extensive research (more than 400 market data points, monthly) indicates that Denver is poised for appreciation. Things like supply and demand, job growth, population growth, relative affordability, and the rental market all indicate that the metro area will rebound well before the larger markets.
Things are not as gloomy as some people would have you believe. Now is a great time to buy, period, and we're buying as much as possible.
Think about it: the price for any given property will only fall to the point at which positive cash flow is possible for investors willing to rent the property out. This means that the rental market becomes a big factor in finding the market's price floor.
If you've been reading rental market headlines, you know that Denver area vacancies are at record lows and, accordingly, rents are rising. This is not the case in LA and Miami, they still have a long way to fall before they reach the point at which investors will stabilize price levels.
If you are in the trenches trying to buy houses right now, you know that things are turning around. Bidding wars on foreclosures are not uncommon; inventory below $100K has all but disappeared; investors are snapping up properties sight unseen, because of the cash flow potential; and lending restrictions are being eased, slowly.
The national media would have you believe that the sky is falling, but that is simply not true in Denver. This article seems to affirm this conclusion.
Are you going to wish you had invested in '08/'09, like many wish they had invested in the late '80s?
August 27, 2008
10:15 p.m.
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WarrenJimmyBuffett writes:
Too bad you people, whoses income depends on appreciation and sales, know nothing of tightening credit and cyclical psychology. Or maybe you do, but you would rather ignore it. Anyway, good luck to you. You'll need it. And when your kids ask what happened to all your money (debt), don't forget to say, "We were greedy when we should have been fearful. And now we are just broke."
August 31, 2008
6:44 a.m.
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mstar71 writes:
http://www.rockymountainnews.com/news...
How about the last paragraph in this one? What the heck is going on with this B-league news organization?