Denver bucks housing trend

For Immediate Release On: 7/24/2008

For Further Information, Please Contact:
John Rebchook - Rocky Mountain News at rebchookj@RockyMountainNews.com

Relevant Info on the Web: http://www.rockymountainnews.com/news/2008/jun/24/denver-area-home-prices-outperform-nation/

Denver-area homes lost an average 4.7 percent of their value in the 12-month period that ended in April, but outperformed most major U.S. metro areas.

The closely monitored S&P/Case-Shiller home price indices released on Tuesday showed an average 15.3 percent drop for the 20 metropolitan areas it tracks.

Only two cities, Charlotte, N.C., which lost 0.1 percent and Cleveland, with a 3.4 percent drop, fared better than Denver.

And from March to April, Denver area homes gained 0.8 percent, compared with a 1.4 overall drop for the 20 cities.

A separate report by the Office of Federal Housing Oversight said that nationwide U.S. home prices fell by only 4.6 percent.

The federal report did not break out individual cities, but it showed the Mountain region, which includes Colorado, losing 4.9 percent in April from a year earlier.

Lou Barnes, principal of Boulder West Financial, noted the two reports use different methods, but said the Case-Shiller report overstates the severity of the housing crisis.

"They are only capturing sales," Barnes said, while the federal report also tracks refinances.

"We know there are something like 1.4 million foreclosed homes for sale nationally," Barnes said. "By definition, those are distressed sales. And we know they tend to sell for 10 percent to 20 percent under the ordinary resale market. So Case-Shiller reflects the prices in a foreclosure-heavy sample."

Even the 4.7 percent drop for the Denver area doesn't address geographic niches such as Boulder County and Washington Park, which are still seeing appreciation, he said.

Prospective home buyers are being cautious, said Diane P. Huttner, a broker with Prestige Real Estate Group.

She said a large number of people are seeing negative reports in the media, and are reluctant to buy now, because they think prices are going to fall more.

"Then there are people who think this is a good time to buy and there are a lot of good choices in the market," said Huttner. On Tuesday, she was showing a 1,677-square-foot condo in the Watermark development near Fourth Avenue and Broadway, on the market for $779,000.

Huttner said she recently sold two homes in which the sellers cut their prices. Many homes "just sitting around" are priced too high, she said.

About Trenka & Associates: Trenka & Associates is one of Downtown Denver's leading Real Estate Companies. http://www.condosandlofts.com

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