Denver home prices rose 0.4 percent in August but remained down 1.6 percent from the previous year, according to the S&P/Case- Shiller index of property values released Tuesday.
Nationally, home prices in 20 cities dropped more than forecast in August, highlighting one of the obstacles facing the economic recovery in its third year. The index fell 3.8 percent from August 2010.
The median forecast of 30 economists surveyed by Bloomberg News was for a 3.5 percent decline.
Recovering the 31 percent plunge in home prices from their 2006 peak will probably be years in the making as foreclosures throw more properties on the market and sales flag. Federal Reserve policymakers such as William Dudley are among those who believe bolstering housing is among the “most pressing issues” facing the central bank.
“Home prices will likely remain under pressure this fall and winter as more foreclosures and short sales come on the market,” said Anika Khan, an economist at Wells Fargo Securities in Charlotte, N.C. “We do not expect prices to find a bottom until mid-2012.”
Estimates in the Bloomberg survey of economists ranged from declines of 3 percent to 4.3 percent.
The group revised the 12-month drop in July to 4.2 percent from a previously estimated 4.1 percent.
Denver Post staff writer Greg Griffin contributed to this report.
