Slowdown expected in Denver housing market
- Dennis Huspeni
- Reporter- Denver Business Journal
Metro Denver’s housing market should slow down in 2013 after a year of double-digit price gains, according to a home price index report released by Clear Capital Tuesday.
The Truckee, Calif.-based real estate data company predicted the Denver/Aurora metropolitan statistical area (MSA) should see prices remain essentially flat with a 0.2 percent price drop.
The report shows metro Denver’s HPI gained 1.6 percent quarter over quarter and 11 percent from Q4 2011. Denver’s MSA has a 12.4 percent real estate owned (REO), or foreclosed, saturation.
Nationally, home prices in December rose 0.9 percent, flat from November’s 1 percent growth rate but a 4.9 percent jump from the same period in 2011. In 2013, the national HPI is expected to grow by 2.1 percent, the report shows.
“2013 should be interesting for the housing market, where national gains should continue to see upward growth but likely at a more modest rate,” Alex Villacorta, director of research and analytics at Clear Capital, said in a statement. “Keeping in mind our current gains are off market lows at the start of the year, 2013 gains will be measured against a higher price floor after a full year of recovery.”
The West region saw a 2.1 percent increase in price gains, 6.3 from the first half to the last half of 2012 and 11.8 percent year-over-year.
“The West has been the front-runner of the recovery. December home price trends offer further confirmation of the strongest regional rebound happening in the Western region” the report states.
Clear Capital’s report mirrors what local, year-end reports showed.
Dennis Huspeni covers real estate and retail for the Denver Business Journal and writes for the “Real Deals” blog
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