Scott Synovic Mortgage Loan Originator Colorado's Mortgage Expert
  • About
  • Mortgage Blog
  • Contact
  • Apply Now

Scott Synovic CMA, CMPS, CMHS
Fairway Independent Mortgage
303.668.3350

Case-Shiller: Denver Ties for 1st Place

10/28/2015

 
Picture
Homes in the Denver skyrocketed by 10.7 percent in August, tying the metro area with San Francisco for the No. 1 spot on the closely watched Case-Shiller index released today.

The year-over-year percentage gain ties a record Denver set in August 2001, according to the S&P/Case-Shiller Price Indices, which tracks home sales in 20 major metropolitan statistical areas.

The last time Denver homes rose by 10.7 percent, the average 30-year, fixed-rate mortgage was 6.95 percent, compared with 3.91 percent in August of this year and the inflation rate in August 2001 was 2.72 percent, more than 10 times higher than the inflation rate of 0.2 percent in August.

August also marked the 42nd consecutive month that home prices in the Denver area have set a record, according to Case-Shiller.

However, given the housing appreciation, tracked by Case-Shiller and other groups including the Denver Metro Association of Realtors, the Colorado Association of Realtors and Zillow, affordability is a big issue, especially for first-time home buyers.

“When the construction defect issues are resolved, we will start seeing more entry-level condos being built, instead of all of these apartment buildings,” Bauer said.
Anthony Rael, chairman of the DMAR Trends Committee and a broker with RE/MAX Alliance, agrees.

“We’ve been worried about housing affordability every month for the past 18 months,” Rael said.

“Every mayor in the country, and especially mayors in Denver and the surrounding areas, are especially worried about housing affordability,” he said.

It is increasingly tough for builders to bring entry-level homes to the market, he said.

“With rising labor costs, rising land costs and still high material costs, the economics are such that it is really hard to build affordable houses,” Rael said.

“I don’t know what the answer is,” especially since it is hard to convince politicians and taxpayers that affordable housing needs to be subsidized, he said.

He is increasingly seeing sellers with homes in the $500,000-plus range dropping the asking price by as much as $30,000.

“I think these sellers missed the market,” and find they can’t match the frenzy of last summer, he said.

“But starting in late February, unless we see a plethora of new listings dumped on the market, which I don’t expect, I think we are going to start this cycle all over again,” Rael said.

“Hopefully, it won’t be quite so frenzied; I think last summer was unprecedented. I hope it is. It would be pretty scary if we had another summer like that, as the kind of price appreciation we saw last summer is not sustainable and not healthy for the overall market and the economy.”

Still, Rael was not surprised by the 10.7 percent gain in the Case-Shiller report.

“It is pretty consistent with that the Denver Metro Association of Realtors, the Colorado Association of Realtors and others reported,” Rael said.

On a national front, there is a lot of good housing news to report.

“Home prices continue to climb at a 4 percent to 5 percent annual rate across the country,” said David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices.

“Most other recent housing indicators also show strength,” Blitzer continued.

“Housing starts topped an annual rate of 1.2 million units in the latest report with continuing strength in both single family homes and apartments,” Blitzer said.

“The National Association of Home Builders sentiment survey, reflecting current strength, reached the highest level since 2005, before the housing collapse. Sales of existing homes are running about 5.5 million units annually with inventories of about five months of sales,” he said.

However, September new home sales took an unexpected and sharp drop as low inventories were cited as a possible cause.

“A notable part of today’s economy is the continuing low inflation rate; in the year to September, consumer prices were unchanged,” Blitzer said.

“Even excluding food and energy, the core inflation was 1.9 percent. One result is that a 5 percent price increase in the value of a house means more today than it did in 2005-2006, the peak of the housing boom when the inflation rate was higher,” Blitzer explained.

“The rebound from the recent lows was faster than the 1997-2005 housing boom, and also much less driven by inflation,” he concluded.

Scott Synovic is a top performing mortgage loan originator providing superior levels of service and satisfaction to clients and business partners in Colorado - www.scottsynovic.com NMLS #253799 Fairway Independent Mortgage Corporation #2289

Comments are closed.
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    APPLY NOW

    Archives

    February 2023
    January 2023
    December 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015

    Categories

    All

    RSS Feed

popular pages

Refinance
Eliminate PMI
Consolidate Debt
Mortgage Calculators
How Much is My Home Worth?
Interest Rates

Company

About Fairway Independent Mortgage Corporation
Financing Disclaimer
Contact

mortgage insight

join now
Communications Consent
Picture
Scott Synovic NMLS #253799 Fairway Independent Mortgage NMLS #2289
NMLS Consumer Access. Fairway Independent Mortgage Corporation
950 South Cherry Street, Suite #1515, Denver, Colorado 80246

Equal Housing Lender licensed through NMLS Regulated by the Division of Real Estate.
​Licensed Mortgage Loan Originator licensed in Colorado and California.
Not endorsed or sponsored by either state or any government agencies.

Picture
Picture
Picture
Featured in The Denver Post and 5280 Magazine as a Five Star Mortgage Professional
© Copyright 2022. All Rights Reserved.
  • About
  • Mortgage Blog
  • Contact
  • Apply Now