Is Denver the top performing real estate market in the country?
According to Case-Shiller, it is.
The most recent Case-Shiller Home Price Indices Report, released today, shows that Denver is the top performing real estate market in the country, with home prices rising 1.5% in June and by nearly 4% during the second quarter of 2008.
(I'm still waiting for the "Breaking News" alert to come across my BlackBerry from the Denver Post.)
I've said it here for months, and those who have listened have benefited: the Denver market was the first into the foreclosure pit, and we will be the first out of it.
The absorption rate for homes in the Denver metro area priced under $250,000, where 80% of the foreclosures occured, is now 3.5 months. Nationally, the inventory of homes stands at 11.2 months. Economists will tell you that 6 months of inventory is a "balanced market".
Now I won't come out and tell you it's a great time to sell a home. The rising prices cited by Case-Shiller are largely attributable to banks raising their list prices on foreclosures, a byproduct of six months of multiple offers and bidding wars on discounted homes. Bargain hunters and investors are out in force, and most of the appreciation we are seeing is at the bottom of the market.
But it's a start.
The government's efforts to revive the rest of the country's falling markets with increased loan limits and tax credits for first-time buyers will only accelerate the pace of our recovery, which is why this remains the best opportunity for investors and first-time buyers in at least 15 years.
I'm kicking off the first in a series of "First Time Buyer Workshops" Wednesday night, October 1. Details will follow in a few days.
