For the first time ever, Denver garnered the top spot according to S&P/Case-Shiller Home Price Indices. Local real estate experts were blown away when they learned that home prices in Denver increased by 10% last February compared to February 2014. The 10% annual growth since 2013 even surpassed Case-Shiller’s estimated average appreciation rate of 5% among 20 markets. The last time Denver‘s home prices demonstrated a significant appreciation was on August 2013; home prices grew by 10.1%. The growth placed Denver in the 13th place.
Denver residential property management was impressed with the findings and expects that the home prices will continue to appreciate as the year progresses. The results clearly show that more people are investing in Denver. Lane Hornug of 8z Real Estate said that he is happy with this development. More homes in Denver are going to be on the market. He happily stated that the number of sales this spring will surely increase.
However, not everyone is happy with this development. Chris Mygatt president of Coldwell Banker Residential Brokerage in Colorado stated that he is worried about the explosive appreciation. Most people cannot afford median-priced homes in Denver. He further stated that Denver lacks inventory and inventory is needed to release some pressure from the rising prices.
Mygatt encourages realtors to encourage purchasing homes in more affordable communities like Frederick, Firestone and Dacono. Mygatt says that those who cannot afford median-priced homes in Denver should consider other affordable communities if they don’t mind the extra hour driving to work.