Good news for buyers in the Mile High City: According to a recent analysis from Zillow, with the exception of California’s biggest cities, no other housing market is cooling as quickly this year
Home Price Gains Cooling In The Mile High
According to recent data from the S&P CoreLogic Case-Shiller Indices shows that home price gains across much of the country, including metro Denver, showed signs of slowing in October.
In a blog post detailing the report, Ralph McLaughlin, deputy chief economist for CoreLogic, said that October marked another month of slowing home-price appreciation, but recent signs point to a gentle softening of the housing market, rather than a crash landing.
The composite index covering 20 large cities posted a 5-percent annual gain in October, down from 5.2 percent in September. Here’s a breakdown of how other cities are faring:
Las Vegas home prices remain on fire, with its index rising 12.8 percent year-over-year.
San Francisco’s index clocked a 7.9 percent gain.
Phoenix rose 7.7 percent.
The Denver index gained 6.9 percent year-over-year in October, which ranked fifth among cities. In the summer, annual gains in Denver’s index were running above 8 percent, and they were 7.3 percent in September.
In the report, David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said that the combination of higher mortgage rates and higher home prices rising faster than incomes and wages means fewer people can afford to buy a house. He noted that reduced affordability is slowing sales of both new and existing single-family homes.
The report also showed that 30-year mortgage is running 4.75 percent versus 4 percent at the end of 2017. Home prices nationally are up 54 percent since they reached their bottom in 2017, and significantly more in cities like Seattle and Denver, where the index is up more than 75 percent.
In particularly hot markets like Denver, it can be hard to determine the best time to buy a home, or even what kind of home your budget will allow you. If you’re ready to become a homeowner in Denver, give Metrowest a shout. One of our experienced pros would love to help you start the process.