What's really going on in the lower-priced end of the Denver housing market (rentals, loan)

[2bindenver]

Home prices in metro Denver continued the climb upwards in March, beating both the state and national numbers, according to the most recent home price index (HPI) report from CoreLogic released Tuesday. In the Denver-Aurora-Broomfield area, the HPI increased by 3.5% from March 2011. That index included sales of distressed properties. That HPI also showed a greater increase than February's year-over-year increase of 1.6% for all sales, including distressed (i.e., short sales REOs). The metro Denver area's index without distressed properties increased 2.3% in March from a year ago.
Read article - CoreLogic reports higher home prices in Denver area - Denver Business Journal

[dj32]

2binDenver,

do you all have numbers for April yet? I can't wait to see them b/c it is hot, hot, hot here in South Metro (and I"ve heard this for Denver as well).

[2bindenver]

The report is published on the 15th of each month.

For April 2012:

Single family (condo + res)
Actives.........................last month.........................last year
10,234......................... -0.69.........................-42.54

Average Days on Market
90......................... -12.62.........................-19.64

Average Sold Price
$275,241.........................+6.10............ .............+10.54

other reports available:

Existing Home Sales
NAR releases national and regional existing-home sales price and volume statistics on or about the 25th of each month. Each report includes data for 12 months and annual totals going back three years. Reports are available for existing single-family homes, condos, and co-ops. Both median and average prices are included.

Pending Home Sales Index
This leading indicator for housing activity is released during the first week of each month. The index measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos, and co-ops.

Housing Affordability Index
This quarterly report measures the ability of a family earning the median income to purchase a median-priced home.

Metropolitan Median Home Prices and Affordability
NAR releases statistics on metropolitan area housing affordability and metropolitan area median home prices each quarter. The state existing-home sales report includes single-family houses, condos and co-ops. The price report reflects sales prices of existing single-family homes by metropolitan statistical area (MSA).

S&P/Case-Shiller Home Price Indices
The S&P/Case-Shiller Home Price Indices measure the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States.

Home Price Index
The HPI is a broad measure of the movement of single-family house prices. The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties.

[dj32]

Thanks- Ironically I just got the flyer from Kentwood today on Cherry Hills sales.. as I knew, volume is way up, actives WAYYYY down and prices are finally going up.

[davebarnes]

Home prices, sales up, inventory down 41% | Inside Real Estate News

By the numbers, Bauer’s report shows:

• There were 5,908 homes placed under contract in may, 23.7 percent more than the 4,777 in May 2011. Contracts were up 4 percent from the 5,681 in April.
• There were 4,625 home closings in May, 23.9 percent more than the 3,732 in May 2011 and 18.9 percent more than the 3,891 in April.
• Year-to-date, there were 24,553 contracts signed, 23.2 percent more than the 19,937 in the first five months of 2011.
• Year-to-date, there were 16,956 closings, 14.9 percent more than the 14,755 in the first five months of 2011.
• The number of unsold homes on the market fell 40.8 percent to 10,591 in May from 17,888 in May 2011.
• The average price of a single-family home that close in May was $307,896, 10.2 percent higher than a year earlier, when the average sales price was $279,443.
• The median sales price of a single-family home rose 12.2 percent to $258,000 from $230,000.
• The average price of a condo was $179,253, up 12 percent from $160,051 in May 2011.
• The median price of a condo was $144,330, up 16.8 percent from $123,525 in May 2011.

[zenkonami]

All great news for sellers...bad news for me =( For those that haven't noticed, wages are not keeping up with rising costs in the rest of the economy, including home prices.

[Snikt]

I just purchased a condo and the appraisal says the market for condos and for all homes in the metro area is pretty stable, not really gaining or losing much. Property values are stable, supply/demand are in balance, and marketing time is 3-6 months.

The person who originally bought the condo I'm moving into bought for 137k in 2008, I just bought it for 158k and it appraised for 163k. So it seems like even in today's market in Denver at least you can come out ahead

[davebarnes]

Rent Increases Accelerate to 6 Percent Nationally
Finally, let’s look at rents. In May, rents were 6.0% higher than they were a year ago, up from the 5.4% Y-o-Y rent increase in April, and 4.8% in March.[1] That means that finding a cheap apartment isn’t getting any easier. In San Francisco, rents rose 14.4% Y-o-Y in May; Oakland, Miami and Denver rents are also up over 10 percent Y-o-Y. Of the 25 largest rental markets in the U.S., only in Las Vegas did rents decline Y-o-Y.
Where Rents Rose Most Among Largest Rental Markets # U.S. Metro Y-o-Y % Change in Asking Rent, May 2012
1 San Francisco, CA 14.4%
2 Oakland, CA 11.4%
3 Miami, FL 11.3%
4 Denver, CO 10.5%
5 Boston, MA 9.8%
6 Seattle, WA 9.6%
7 Houston, TX 9.2%
8 Portland, OR-WA 6.8%
9 Chicago, IL 6.4%
10 New York, NY-NJ 5.9%

[vsaint]

Originally Posted by Snikt

I just purchased a condo and the appraisal says the market for condos and for all homes in the metro area is pretty stable, not really gaining or losing much. Property values are stable, supply/demand are in balance, and marketing time is 3-6 months.

The person who originally bought the condo I'm moving into bought for 137k in 2008, I just bought it for 158k and it appraised for 163k. So it seems like even in today's market in Denver at least you can come out ahead

That marketing addendum in appraisals is mostly boilerplate, appraisers are required to fill them out but aren't being paid any more for it. Fill out the wrong check boxes and the underwriters will come back with a slew of requests. As much as the government tried to change the appraisal process, things stayed very much the same.

[CosmicWizard]

Zenkonomi wrote:

For those that haven't noticed, wages are not keeping up with rising costs in the rest of the economy,

I've been noticing this for the last umpteen years, and the discrepancy continues to grow. As long as the system is rigged in favor of the corporate entity, the discrepancy will continue to expand.