Metro Denver on top again for home price gains in June
Metro Denver home prices jumped 10.2 percent in June from a year earlier, double the pace seen nationally, according to the Standard & Poor’s/Case-Shiller 20-city home price index.
That is the fourth time in the past six months that Denver home values on the index have risen at double-digit rates. Nationally, home prices in the 20-city index rose 5 percent in June from a year earlier.
But the June report might already be outdated. Local real estate agents say a chill set in on the market in July and August that will make it harder to maintain that strong rate of appreciation.
“Prices are beginning to level off, and in some cases, we’re seeing price reductions come back into the marketplace,” said Anthony Rael, who tracks housing market trends for the Denver Metro Association of Realtors.
According to a report from the association, the median price of a home sold in metro Denver dropped 3.1 percent from June to July, although the median remained up 11.5 percent from July 2014.
Rael said that cooling trend is continuing into August, although it isn’t certain whether home prices set a near-term peak in June or whether the usual seasonal slowdown started earlier than normal this year.
“It feels like the market is at a standstill,” said Redfin agent Michelle Ackerman. “Showings have dropped off significantly.”
Redfin released a housing demand index on Tuesday that showed homebuying activity slowing nationally, including in Denver.
Ackerman said she recently listed a home for under $300,000 in an area with a top-rated school district, which earlier in the year would have generated 30 showings and at least three offers. Instead, she got nine showings and one offer.
That might be considered robust in other cities, but in Denver, it feels like a slowdown.
Metro Denver’s average annual home price gain since 1988, according to the Case-Shiller index for Denver, is 4.4 percent.
Zillow, the residential real estate website, predicts Denver home price gains will fall below that average rate of appreciation to 3.4 percent.
Its home price index shows a 13.9 percent gain for the year ending in July.
Another home price index — from FindTheHome.com, a residential real estate search engine — ranks Denver as the second-most overvalued housing market in the country after Houston.
The site forecasts a 5.5 percent gain in metro Denver home prices over the next 12 months.
– The Denver Post Business