New Housing Prices Data from Denver Post (Castle Rock: short sales, foreclosure)

[formercalifornian]

Denver Post graphic of regional house prices

I perused the interactive graphic this morning, and I am stymied by some of the numbers. For example: how can Bell Mountain Ranch have a 10% rise in average YOY prices, while also experiencing a 26% short sale/foreclosure rate? Somebody, please help me figure this out. Am I missing something?

[tfox]

Originally Posted by formercalifornian

Denver Post graphic of regional house prices

I perused the interactive graphic this morning, and I am stymied by some of the numbers. For example: how can Bell Mountain Ranch have a 10% rise in average YOY prices, while also experiencing a 26% short sale/foreclosure rate? Somebody, please help me figure this out. Am I missing something?

I'm not sure where Bell Mtn Ranch is, but one big way the number can get skewed is that they don't take into account a lot of factors.

For example, a lot of the urban neighborhoods near me are facing steep rates of appreciation on paper. However, in reality it's not quite like that, because so many of the properties around have been scraped off to build larger, newer houses in their place, of course at 2-3 times the price. So, on paper, those'homes have appreciated dramatically, but in fact the price went up because the house was essentially replaced.

Also, prices can change if builders start adding a bunch of high end homes to the neighborhood, even if the existing homes aren't really appreciating.

[2bindenver]

BMR is in Castle Rock just south of Plum Creek. Mostly new builds so yoy is skewed. The number in foreclosure/short sales is due to the transient nature of executives - although there is one total rehab for $300 or so in a place where a million is norm. All the lots are large, some have great views.

[formercalifornian]

2B...do you know how many sales there were in BMR during the last year?

[2bindenver]

38 on the market from 300 to 1.475

19 sold in the last 12 months from 459 to 1.433

[dj32]

Well my pocket went up 14%, largely for the reasons tfox is mentioning (which is why zillow is always so off for city 'hoods). Land value is 450K, give or take... right on Wash Park, scrapes are selling for 800-850- insane- but they are building really expensive homes. What will be interesting if if they are able to sell them, there is a ton of building gone on and it does make me a little concerned about 2- 3 yrs from now.

[Biopace]

dj32, I'm also in Wash Park (West side) and would agree that the increases are largely due to the scrapes. On this side of the park, most of the scrapes result in new duplexes (including one super-ugly 3-story ultra modern triplex on the 1000 block of Corona). It's turning into Cherry Creek around here and I'm not sure how it's going to play out.

[dj32]

Biospace- I know which one you are talking about. You can see it when you are running in the park! I would hasten to say increases have been flat from last year for most SFH, particularly in the upper end of the range.