Denver was one of the hottest real estate markets for 2015. Double-digit home price gains consistently made metro Denver a top market for home price appreciation according to a variety of surveys.
Zillow’s home price index for metro Denver in November showed a 15.5 percent annual increase to $318,000, marking the 10th consecutive month Denver has led the country’s major metros for home price appreciation.
Metro Denver also tied for first on the S&P/Case Shiller home price index with a 10.9 percent increase in home values in October, continuing a long streak of nation-leading appreciation.
Inventory shortages, especially for lower-priced homes, set off bidding wars in the early part of the year.
Homes sold in about 23 days, with the most affordable properties selling in less than a week. Back in 2012, it took about 80 days for a new listing to sell on average.
The tight market pushed home prices up, adding $39.4 billion in equity for Denver-area homeowners, Zillow estimates. But it also added to the misery of first-time home buyers and renters.
The state demographer estimates that Colorado added 45,300 new households in 2015, but only 25,000 new housing units.
Existing home sales in Denver have softened sharply the past few months, although it is too early to tell if that is signaling a peak in the market.
Zillow predicts Denver home prices will rise a much slower 4.6 percent in 2016, still beating the U.S. average, but a big drop from 2015.
By Aldo Svaldi
The Denver Post