Metro home prices fall but do better than in most cities

For Immediate Release On: 1/27/2009

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

Relevant Info on the Web: http://www.rockymountainnews.com/news/2009/jan/27/denver-area-home-values-show-strength/

The Denver-area housing market outperformed all but one market in the 12 months ended in November, according to a national housing report released Tuesday.

And in November, Denver-area homes lost only 1.1 percent, making it the best-performing city in the S&P/Case-Shiller Home Price Indices.

For the 12-month period as well as the month of November, all 20 markets in the index showed negative returns.

Home prices in the Denver area fell by only 4.3 percent in the 12 months ended in November; the overall drop for the index's 20 metro areas was 18.2 percent. Only Dallas, with a 3.3 percent decline, fared better than Denver.

"Sometimes I have to chuckle when we celebrate negative returns, but relative to other cities we are in much better shape," said economist Patty Silverstein, principal of Development Research Partners.

While the Denver area will lose jobs this year, Denver and the state will continue to outperform the nation, Silverstein told about 300 people at a real estate forecast breakfast Tuesday in Lakewood.

Silverstein said she expects "minor" increases in home sales activity this year from 2008 and perhaps even a slight increase in prices.

"Our marketplace is not overbuilt," Silverstein said. "We are building next to nothing. We are not plagued by an over-abundance of inventory like so many other places. And we never had the roller-coaster rise and fall of prices other places saw."

Chris Behrens, a principal of UrbanThrive Real Estate, called the Case-Shiller report "encouraging" and "good news."

Behrens said he has noticed that there seems to be a "core group of career professionals" selling real estate in Denver, while many brokers are leaving the business because they couldn't weather the tough economic climate.

"I get the impression there are fewer buyers looking around on their own," Behrens said. "There are buyers out there who think you can get some really great deals, and they are turning to a core group of knowledgable people to help them find and evaluate properties."

Denver's housing market is in far better shape than in cities in California and in Phoenix, Las Vegas and Miami, said Chris My- gatt, president of Coldwell Banker Residential in Colorado.

"These are catastrophically affected markets," Mygatt said.

Phoenix and Las Vegas were the two worst markets through November, losing 32.9 percent and 31.6 percent, respectively, according to Case-Shiller.

In some towns in California, homes that sold for $1 million two years ago probably are worth less than $600,000 today, Mygatt said.

Since January 2000, a typical home in Denver has appreciated 26.65 percent, while other markets have appreciated far more. For example, during that period, homes in Los Angeles have appreciated almost 76 percent; Miami, almost 70 percent; New York 87 percent; Seattle 66 percent; and Phoenix and Las Vegas are both up about 30 percent, according to Case-Shiller.

However, the free-fall in prices for many of the markets outside of Denver is expected to continue.

Despite showing a smaller drop than most of the nation, the Denver market is several months away from hitting bottom, said independent broker Gary Bauer, who prepares a monthly report on the Denver-area market.

"I don't think we're close enough to pinpoint the bottom yet," Bauer said.

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

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