The S&P / Case-Shiller Home Price Indices reported today that through December, home prices were up by the end of the year by 9 percent in Denver and 11.3 percent nationwide, over the same period in 2012. 

While area home prices dipped by .1 percent from November and .7 percent from the high in September, Denver's 146.26 level — where home prices are up 46.26 from their baseline of 100 in January 2000 — is certainly good news and respectable. 

David Blitzer, chair of the Index Committee at S&P Dow Jones Indices, said that the home price index ended its best year since 2005, yet thought that the strongest part of the recovery in home value may be over — for now. "Year-over-year values for the two monthly composites weakened and the quarterly national index barely improved. The seasonally adjusted data also exhibited some softness and loss of momentum."

While the sluggish sales in December could be attributed to the colder weather that seemed to hit most of the country, Blitzer is concerned about recent economic reports that sugget a bleaker picture for housing. With permits and housing starts below expectations nationwide, Blitzer observed that higher home prices and mortgage rates are affecting affordability. Mortgage default rates are back to their pre-crisis levels, yet banks are staying firm on their lending standards. Even so, the report singled out Denver as one of the markets that has improved. Read more...

 

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