Denver was among six metropolitan areas in a 20-city survey released Tuesday that saw home prices increase in December compared with the same period a year ago.
Denver-area home prices rose 1.2 percent in December compared with the same month in 2008, the fifth-largest increase among the cities, according to the Standard & Poor’s/Case-Shiller home-price index.
Chris Mygatt, president and chief operating officer of Coldwell Banker Residential Brokerage, said the number is encouraging, though it’s lagging by two months.
“It’s supported by the fact that over the last five months ending in January, we’ve seen increases in average sales prices, which we haven’t seen in three years,” he said. “That, in conjunction with the fact that our inventory continues to go down, puts more and more pressure on pricing.
“It’s the beginning of a trend.”
One of the keys to lower inventory is keeping people in their jobs, Mygatt said.
“As long as we keep Coloradans employed, they don’t have to give their homes up,” he said. “If they don’t have to give their homes up, inventory comes down.”
Home prices in the 20-city index dropped 2.5 percent during the fourth quarter compared with a year ago, indicating that prices are stabilizing.
Declines during the first, second and third quarters were 19 percent, 14.7 percent and 8.7 percent, respectively.
“Nationwide, home prices seem to be in that move toward almost recovery,” said economist Jeff Thredgold of Vectra Bank Colorado. “We’ve seen enough decline in nationwide prices to talk more about the idea of stabilization of prices. We’re seeing more signs of stabilization, but now the anxiety is about what will happen with mortgage rates.”
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
