Through September, the S&P Down Jones Indices for its S&P Case-Shiller Indices showed that Denver's home price index rose  to 147.30 — a new high — an increase of .2 percent in the third quarter and 9.9 percent over the last four quarters. Nationally, the Case-Shiller Indices rose 3.2 percent in the third quarter and 11.2 percent over the last four quarters. 

The report noted that across the country, average home prices have returned to their mid-2004 levels. The report also showed that the 10-city composite has recovered 22.9 percent from the March 2012 low, while the 20-city composite has recovered 23.6 percent.

And while 19 cities decelerated from August to September, 12 MSAs showed double-digit increases; Las Vegas, Los Angeles, San Diego and San Francisco all posted gains of more than 20 percent. David Blitzer, chair of the Index Committee at S&P Dow Jones Indices, observed that the second and third quarters were good for home prices. With 13.3 percent year-over-year growth both the 10- and 20-cities composites posted their highest annual numbers since February 2006. 

"Regionally, the West continues to lead," Blitzer said. "The strong price gains in the West are sparking concerns about another bubble. This time, however, the talk is on the fear of a bubble, not a rush to join the party and buy. Other data suggest a market that's beginning to shift to slower growth, rather than one about to accelerate."

He added that housing continues to emerge from the financial crisis and consumers' balance sheets are gaining strength. "The longer-run question is whether household formation continues to recover and if home ownership will return to the peak levels seen in 2004." Read more...