Denver real estate is in recovery. We’re the baby sapling, taking root and growing strong.
The thing is, we never totally crashed and burned like other cities did. Prices went down for sure and according to yesterday’s S & P – Case Shiller Report, we’ve seen depreciation of 4.9% since this time last year. Compare that with Phoenix, down 35.3% year over year.
Since last month, Case Shiller reports that Denver’s prices have appreciated 1.5%. That’s an awesome bounce. Some analysts think this may be a seasonal adjustment, and may not signal a recovery.
Our available inventory hasn’t risen significantly this year. We didn’t experience the typical big bounce in available listings in the Spring. For that reason, we’ve been able to stabilize the market. The ratio of properties available for sale and days on the market is stable. We still have a stratified market, and we need to see high end properties shake out some inventory.
High end sales are increasing slightly too.
I looked up Park Hill and Hilltop sales since April yesterday, several million-plus sales have been recorded. Jumbo rates have become more competitive in recent weeks and there are cash buyers out there looking for a deal on their dream home.
Appreciation follows a reduction in time on the market.
As the days on the market have fallen, as we’ve begun to have multiple offers, as rates have remained competitive we’ve had appreciation re-enter the Denver market. We won’t get back to double digit appreciation very soon. But buyers beware – if you don’t get off that fence soon, you may be looking back over your shoulder in regret.
Margaret Jackson, the Denver Post’s Real Estate Correspondent wrote more about the S & P – Case Shiller Report in this morning’s paper. Read to the end!