The Denver real estate market was up again this past August according to the latest Case-Shiller report. During the month of August 2009, the value of Denver same-home sales increased 1.0%, a slight decline in growth from July which saw a 1.5% increase.
Over the past year and a half, while real estate markets across the country have been collapsing, Denver has been faring relatively well. Though Denver real estate isn’t in the Top 5 markets this month, it is the second best market for the previous 12 months in the Case-Shiller 20 Market Index with an annual decline of only 1.9% (Dallas performed the best at a -1.2%). Our current price levels are back to where they were in January 2004 (using an adjusted Index value of 127).
Outlook for the Denver Real Estate Market
My thoughts looking at the latest report are that Denver is pretty stable backed by the consistent movement in home value and the lack of a large spike in pricing running up to the most recent collapse in local markets.
Since many of the markets that were hurting are now leading the index in price growth while also having some of the greatest overall growth since 2000, shows a lot of volatility that Denver doesn’t seem to have.
However, with the outlook for the US Dollar, interest rates can’t remain as low as they currently are, making future loans less affordable. This, coupled with the expiration of the First Time Home Buyers Tax Credit will present a challenge to the market in the next year.
