Denver reached a new post-crisis price gain peak in February of 146.13, according to the S&P Case-Shiller Home Price Indices, the leading measure of U.S. home prices. Nationally, price gains slowed by two tenths of a percent, while Denver was up a tenth to a 9.1 percent annual price gain from February 2013. Of the 10- and 20-city composites that the Case-Shiller index tracks, Dallas was the only other city that was up — 10.1 percent — over February 2013.

David M. Blitzer, chair of the Index Committee at the S&P Dow Jones Indices, observed that while price gains cooled somewhat, overall, most cities — particularly in the west — have seen sizable increases since the beginning of 2013. Yet, he said, "most other housing statistics are weak. Sales of both new and existing homes are flat to down. The recovery in housing starts, now less than a million units at annual rates is faltering. Moreover, home prices nationally have not made it back to 2005."

Blitzer noted that analysts blame this slowdown on mortgage interest rates, which jumped last May, yet have remained steady since then. Other analysts cite the ongoing tough lending atmosphere, while others still are concerned about consumer confidence. The result? "Less demand and fewer homes being built," Blitzer said. 

He pointed to gains in consumer spending and business investment as means to boost the economy. "Long overdue activity in residential construction would be welcome," Blitzer said, "but is certainly not assured." Read more...

 

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