Home prices in metro Denver continue to decline in October, but not as much as prices nationwide and in many states, a new report from CoreLogic Inc. says.
Prices in the Denver-Aurora-Broomfield area slid 1.3 percent in October from the previous month, and were off 0.4 percent from October 2010, according to CoreLogic. When distressed, or REO, sales are stripped out, the year-over-year price increased by 1.3 percent in October.
The price for homes statewide dropped 1.2 percent in October from a year earlier, and just 0.1 percent without distressed sales.
CoreLogic (NYSE: CLGX) of Santa Ana, Calif., provides consumer, financial and property information and analysis to business and government.
Its national home price index (HPI) dropped 1.3 percent in October from September — the third consecutive month-to-month decline — and 3.9 percent from October 2010. Those numbers included distressed properties. Without REOs, prices on October dropped 0.5 percent from October 2010 and 2.1 percent from September.
“Home prices continue to decline in response to the weak demand for housing,”,CoreLogic’s chief economist, said in a release. “While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance. Looking forward, our forecasts indicate flat growth through 2013.”
John Covert, director of Greenwood Village’s Metrostudy, said the small decline “is actually a good sign.” “That means prices are stabilizing,” said Covert. “Prices have got to level out at some point.”
Metrostudy is a marketing and research consulting firm for the home building industry.
On the new home side, Covert said prices are dropping because the average square footage continues to decline as new home builders try to compete with re-sale homes.
“We get that question all the time from home builders: ‘When will pricing return?’ It all has to do with supply and demand,” Covert said. “Yes, prices have been declining. But on the flip side, they’ve declined at a very measured pace and it’s flattening out. … That goes back to us not having a big price bubble that burst, like a lot of markets did.”
The Denver and Colorado markets fared much better than many states in CoreLogic’s numbers. Nevada posted the biggest decline in October, with a 12.1 percent price drop year-over-year including distressed properties, and an 8.8 percent drop without REO properties.
West Virginia showed the greatest increase in home sale prices, with a 4.8 percent increase including REOs.
The metro Denver market, including distressed, in the two months prior to October (the most recent data available from CoreLogic): September down 1.3 percent year-over-year and August down 2.3 percent for the same time period.
The CoreLogic index is one of several popular measures of home prices, using different methodologies, covering different housing types and giving different results.
The most recent S&P/Case-Shiller Home Prices Index, released Nov. 29 and covering September, showed home prices in metro Denver declined 0.8 percent in September from August, and wre down 1.5 percent from September 2010 levels.
The Case-Shiller prices are for resales of stand-alone single-family homes only, not new construction or condominiums.
And a Nov. 8 report from Denver-based Integrated Asset Services said that the median single-family house price in metro Denver declined 1.6 percent in the third quarter from the same period of 2010, although it was up 1.7 percent from the second quarter of this year.
Source: Biz Journal