Denver Market Is Improving – Just Not By 15%

Russ — Mon, 05 Apr 2010 23:21:30 +0000

Did you read my March 21st Post?

That was when a Denver Post reporter used information provided by a local real estate broker to announce “Metro-area home prices rise 15% over a year ago”. The broker (who presumably provided the data) was quoted and named in the article and did not refute the conclusion. I guess “any press is fine. Just spell my name right”. In my evaluation, I concluded that it was an irresponsible use of “median” data and an irresponsible conclusion.

S & P Case-Schiller Wins Again

You will continue to see me refer to Case-Schiller because they use “same house sales” to make their evaluation. And guess what? Denver prices are up an overall 2.6% for January 2009 to January 2010. And what else? The same broker who seemed to support the “15%” increase is right there supporting and being quoted regarding the 2.8% increase. (Disclaimer – The 15% increase was generated as a “median” for February of 2010 and 2009. The 2.9% is a year-to-year for January. Case-Schiller is a little (lot?) more conservative and waits for final data.)

Is your home value up by 2.6%?

It may well be. But as you are reading my blog you know that I continue to maintain that values are very local and what may be true for a home in Parker, may be different for a home in Green Valley Ranch. Talk to a professional if you need to know.

Is this 2.6% a “sign”?

I am not so sure. The tax credit “stimulus” has had some effect. That ends from an “under contract” perspective on April 30th and a closing perspective on June 30th. After that we will see how the unencumbered market responds. There is still a lot of unemployment and not much job growth and we will need to see both of those before we have vibrant housing market.

Agree, disagree, have questions?

Leave a comment and I will respond. Or, contact me directly. I am an Exclusive Buyer Agent (EBA). I choose to always and only represent the interests of my buyer clients.