Colorado Home Value Drop Among Lowest in US

By
Real Estate Agent with RE/MAX Alliance

Mike J. Gold
Managing Broker
RE/MAX Horizons Group
Office: 303.327.6880
Fax: 303.327.6890
Toll Free: 1.800.626.1419

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Colorado Home Value Drop Among Lowest in US
According to the S&P/Case Shiller home price index, which tracks home prices in some 20 major metropolitan areas, Colorado home prices fell 4.7% in the 12 Months Prior to April 2008.  This is substantially lower than the national average of 15.3% Only Charlotte, NC and Cleveland, OH showed less of a drop in home prices during the same period.
Indeed, Colorado home values have shown great resiliency in the face of the nation-wide mortgage crisis, actually growing 0.8% between March and April 2008 while the average home price in the rest of the nation fell 1.4% during the same period.
In addition to the less-than-average home value drop, the Denver area has seen some pockets where property values have actually appreciated.  Boulder and the Washington Park neighborhood of Denver are 2 prominent examples.

Comments (4)

Betina Foreman
WJK Realty - Austin, TX
Realtor, C.N.E., with WJK REALTY

So what is the median price in Denver now?

Aug 01, 2008 02:06 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

As the mortgage mess gets behind us...the buyers will stop sitting on fences. We as a nation just need to turn off the national news for about a month.

Aug 01, 2008 02:16 AM
Anonymous
mikejgold

 

Trend 07/28/2008 1 month 3 month 6 month 12 month Median Price $289,900 +1.7% +7.8% +18.4% +16.0% Inventory 24,695 -1.6% -0.9% +6.8% -15.1%

 

Aug 01, 2008 06:09 PM
#3
Anonymous
Anonymous

Very true, this article really hits home ;)

Ignore Annual Housing Data -- It's the Monthly Data That Matters to Home Buyers

July 30, 2008, The Mortgage Report by Dan Green

 

For the third straight month, at least 15 of the nation's 20 largest real estate markets showed relative monthly improvement in May 2008, according to the S&P/Case-Shiller Home Price Index. I use "relative monthly improvement" as another way of saying that markets are "less worse than they were" and that's good for the housing market (although you wouldn't know it by looking at the headlines). 

 

Instead of pulling the positives out from the data, newspapers are highlighting the year-over-year, cliff-diving-like decline in prices.   Now, it's not wrong to look at annual trends in home prices, it's just a little bit misleading.  Remember: Active home buyers are probably seeing something completely different from what the papers are saying they should be seeing.

 

See, year-over-year comparisons are fine for identifying long-term trends, but as it relates to an active home buyer, annual data don't mean diddly.  It's the short-term trend that matters.

 

The obvious example: If you've been shopping for a home over the last 3 months, you've probably noticed the market slowly slipping away from you, and moving into the sellers' favor.   When you see "all the good homes" go under contract, or sellers regaining their negotiation power, it's your sign that the market is shifting.

 

In other words, if you're buying a home now, the real estate market of 12 months ago is irrelevant.  What you're going to pay for a home is based on market activity today, not activity from 2007.

Aug 01, 2008 06:13 PM
#4