The month-to-month increase in home prices in the Denver metropolitan area dating back to December 2019 has receded and may mark the beginning of a series of price declines.
Home prices in Metro Denver fell 0.1% from May to June. S&P CoreLogic Case-Shiller Index for Metro DenverAnd while it was a modest drop, home prices rose by an average of 1.4% per month, marking the 29th consecutive month of declines, a historic amount.
“We have previously noted that mortgage lending has become more expensive as the Federal Reserve (Fed) raises interest rates,” said Craig Lazzara, managing director of S&P Dow Jones Indices. said in a release on Tuesday that house prices could continue to slow as the macroeconomic environment remains challenging.
From April to May, none of the 20 metropolitan areas tracked by Case-Shiller decreased month-over-month. But between May and June, six did, including Denver. Other metropolitan areas that have started to see home price declines include Seattle, which has fallen 1.9%. San Francisco dropped her 1.3%. San Diego fell 0.7%. Los Angeles decreased 0.4% and Portland, Oregon decreased 0.1%.
“Western markets, including the coastal cities of Seattle, Calif., Portland and Denver, experienced the most notable slowdown in home price growth in June,” said CoreLogic deputy chief economist Thelma Hepp. to the east.
Annual home price growth remains strong, well above the historical average of 5% per year. Denver continues to grow at an annual rate of 19.3%. It would need several months of consecutive declines to erase that strong momentum. CoreLogic does not anticipate annual declines to show up next year.
When monthly price increases in the Denver metropolitan area finally wore off in late 2019, mortgage rates also surged, reducing buyer demand. I was able to
another Federal Housing Finance Agency Index Colorado’s annual home price gains in the second quarter were 17.7%, in line with nationally measured gains. Colorado Springs continues to grow at an annual rate of 18.4% and Metro Denver at 17.5%, according to the FHFA.
Over the past five years, Colorado home prices have risen nearly 71%, compared with a national rise of 63.5%. Since 1991, Colorado home prices have risen 597%, compared with a 290% rise nationally, according to the FHFA.
The steep month-over-month decline in median home prices sold in the Denver metropolitan area in July also suggests the downward trend may accelerate, as did the recovery in mortgage rates in August. .
The median closing price for single-family homes sold in the Denver metropolitan area in July was $650,000. Down 3% from June, Up 8.5% YoY, According to the Denver Metro Real Estate Association. As recently as April, the annual return was 18.5%.
The median closing price for condos and townhomes was $408,000, down 5.1% from June and still up 7.4% over the past year. April saw an annual increase of 17.5% for condos.