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Denver housing market tops nation at end of 2008

By John Rebchook, Rocky Mountain News (Contact)

Published February 24, 2009 at 7:45 a.m.
Updated February 24, 2009 at 9:48 a.m.

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The Denver-area housing market was the best-performing of 20 of the largest markets at the end of last year, losing only 4 percent in the fourth quarter in 2008 from the fourth quarter of 2007, according to the closely watched S&P/Case-Shiller Home Price Indices released this morning. The 20 major markets tracked showed a record 18.5 percent decline, while the 10-city composite in the index showed a 19.2 percent decline, also a record.

“Denver, Dallas, Cleveland and Boston fared the best in terms of annual declines down 4 percent, 4.3 percent, 6.1 percent and 7 percent, respectively,” according to the report.

But nationwide, prices of existing single-family homes continue to set record declines, continuing the trend throughout all of 2007 and 2008, the report shows.

“The broad downturn in the residential real estate market continues,” said David M. Blitzer, chairman of the index committee at Standard & Poor’s. “There are very few, if any, pockets of turnaround that one can see in the data. Most of the nation appears to remain on a downward path, with all of the 20 metro areas reporting annual declines, and eight of those MSAs (metropolitan statistical areas) now with negative returns exceeding 20 percent. If one looks in detail at the annual return data, it can be seen that 13 of the 20 MSAs and two composites have been reporting consecutive declines since December 2007. The monthly data follows a similar trend, with all of the metro areas reporting at least four consecutive months of negative returns.”

From November to December of last year, the Denver-area housing market lost 1.5 percent. Only Boston did better, losing 1.3 percent.

Comments

  • February 24, 2009

    10:17 a.m.

    Suggest removal

    jlgraybill writes:

    Oh great, "only" an annual loss of 4.2%. Denver lost 11.1% from 8/07 to 12/08, and I can't imagine the numbers for January and February 09 will be pretty. Call me weird, but this news doesn't make me happy just because people in other cities are losing more. If my wife cheats on me, it doesn't make me happy knowing that my neighbor's wife cheated on him multiple times...she still cheated. It is not good news, regardless of your try for spin.

    Thanks for trying on the positive spin I guess, but with Unemployment rising (even in Denver...including my neighborhood), more loan re-sets coming, a likely continuation of high foreclosures, and no end to decreasing consumption in sight, I'm not sure how this is suppossed to cheer me up.

  • February 24, 2009

    10:25 a.m.

    Suggest removal

    bph writes:

    Thats like saying that your ship sank in the shallowest sea

  • February 24, 2009

    10:55 a.m.

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    SheikYurBooty writes:

    The Realtors will be going crazy - great time to buy!!! great time to buy!!!

    To borrow from bph - at 4% loss, we are sinking the slowest.

  • February 24, 2009

    11:05 a.m.

    Suggest removal

    leavemealone writes:

    Our market is smoking hot as we speak & changed for the better last March. A "Normal" listing in average condition, halfway decent location, & priced fairly is selling in a matter of days/multiple offers/at or above full price.

  • February 24, 2009

    11:15 a.m.

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    jlgraybill writes:

    leavemealone - Where do you live...Never Never Land? I have friends in desirable areas in Cherry Creek, Highlands, and Downtown areas that have all had trouble listing and selling their homes in the last few months. They would love to see these multiple offers you speak of, let alone any offer. The one offer one of them saw is no good as the buyer can't qualify for a loan. Even great areas are having trouble, let alone the not so great areas. All high priced homes are having trouble moving right now. Denver prices are below prices from November 02 (Case Schiller), and you're saying that it's smoking hot and we've already hit the bottom? If that's the case, how come Denver prices dropped 5.5% from July to December 08? I'd like to be as optimistic as you, but I guess I'm not drinking the same Kool-Aid. That, and I'm also not a realtor.

  • February 24, 2009

    11:52 a.m.

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    ghoax writes:

    SheikYurBooty , guess you really like that renting deal hunh? Yeah why own something when you can rent right?

    Most people who have lived the American dream, enjoy owning property, as a matter of fact, that was what "pursuit of happiness" meant in the Constitution. There are plenty who hate paying rent and would do anything to have their own place if they could do it, and when they do they get to be even more "patriotic" by paying property taxes.

    But, we need a healthy economy, job and business growth to do that, a concept that is escaping the current administration that is convinced we'll all go out and build roads and be prosperous.

    But if you're happy paying rent to your landlord and making them rich by all means, please do. For me, I'd rather own real estate or gold right now instead of anything else...

  • February 24, 2009

    noon

    Suggest removal

    SheikYurBooty writes:

    ghoax - I paid my house off in 2001. All I pay now is taxes + power.

    Butrenting makes a lot of sense in many cases. One such case is when PRICES ARE DROPPING.

    Your outdated class envy fantasies are too much - I don't know of any landlords getting rich these days, so that should please you.

  • February 24, 2009

    12:09 p.m.

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    jlgraybill writes:

    ghoax - I have to side with SheikYurBooty on this one. We have some great friends who sold their home in Summer-Fall 2007, and have rented a house since then. They're happy as clams right now, because they're living in a great home, and are ready to buy when they feel it's right (and find their dream home). They're paying much less than they would on a mortgage for the same home, and they aren't making their landlord rich with the payments they make (which I can't imagine even cover the mortgage). When rents are less than mortgage payments, I'd much rather be renting ready to take advantage of the price drops than sitting on a depreciating asset. I like my home and all, but it sure would be nice to be in a position to take advantage of dropping prices. I envy some renters right now...and over the coming year or two (or three).

  • February 24, 2009

    1:10 p.m.

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    CGreen writes:

    House's s_ck anyway you look at it.

    They just sit there and demand attention, "I need a new roof", "cut my lawn", "paint me"....sheesh.

    Get a Winnebago.

  • February 24, 2009

    2:05 p.m.

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    WarrenJimmyBuffett writes:

    "Hey, Mom, I failed. But I didn't fail as bad as some other people."

  • February 24, 2009

    2:07 p.m.

    Suggest removal

    Darwin writes:

    jlgraybill; I didn't see the article as trying to put a "feel good" spin on Denver as much as it was presenting some facts. But to each his own.

    CGreen; but than the Winnebago will demand, "I need new tires", "change my oil", "give me a tune up", "I need gas"...on and on. LOL

  • February 24, 2009

    2:13 p.m.

    Suggest removal

    WarrenJimmyBuffett writes:

    "The Denver-area housing market was the best-performing of the 20 largest markets at the end of last year,"

    By the way, Denver is the 25th largest MSA in the United States. This Case Shiller tracks 20 larger markets, not the 20 largest markets. The RMN should correct this misstatement.

  • February 24, 2009

    2:53 p.m.

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    leavemealone writes:

    lgraybill writes:
    "leavemealone - Where do you live...Never Never Land?"

    Denver.

  • February 24, 2009

    3 p.m.

    Suggest removal

    leavemealone writes:

    Price, Location, Condition....

    In the above order.

  • February 24, 2009

    3:26 p.m.

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    EZBakeOven writes:

    Is this kinda like being the tallest midget in the world?

  • February 24, 2009

    4:47 p.m.

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    mozillauser writes:

    Anyone else ok with prices going down? I mean, you don't really want to have your home worth much until it is time to sell (and that's only if you want to move to an area that has prices that do not move with your area's prices.) In the meantime, declining housing prices usually mean less property tax for a typical homeowner....

    Of course, if you're investing your money in flipping houses, you might think differently.

  • February 24, 2009

    4:57 p.m.

    Suggest removal

    hitek79 writes:

    Leavemealone is exactly right, and he is definitely not living in Never Never Land.

    The last 2 houses I've put offers in on have been sold out from under me in less than 24hrs by other investors. 8 months ago I was buying houses 10-15k less than list price, and these were houses with DOM's over 60 days.

    As far as your friends in Cherry Creek, Highlands, and Downtown, those markets were overpriced to begin with, and the people that live there are too proud to think that their houses aren't worth what they think they are. My next door neighbor has had his house on the market for 120 days, but it's because it's 40k overpriced, but he's too hard headed to realize it.

  • February 24, 2009

    8:01 p.m.

    Suggest removal

    smith writes:

    I know this is a bad recession and all - but its far from a depression. We'll see if the Feds choose to prolong this.

    Meanwhile, the money supply in this country has shot thru the roof - I believe we've something like doubled the amount of dollars in circulation in the past year (*citation needed). Denver never reached the bubble heights of the left coast either. While housing "values" may not increase much, I do believe that in dollar denominated terms, we'll see a turnaround sooner than you think

  • February 25, 2009

    12:19 a.m.

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    market_man writes:

    The smart people are making money in Denver real-estate right now. The market is heating up and most of you doom-and-gloomers will have to wait until you see a double digit citywide average increase in price according to Case-Shiller or some other popular index before you will make any money. Maybe you should ask the smart money what they are doing.

  • February 28, 2009

    4:08 a.m.

    Suggest removal

    toddmccalla writes:

    It can always be worse!

    http://www.vailco.com/vail-real-estat...