As of June 2014, Denver metro area home values are at another all-time high. According to the S&P/Schiller Home Price Index, Denver’s home price index reached 154.39 in June (compared to 152.58 in May, 150.58 in April and 148.18 in March). That’s a 7.7% increase from June 2013.
So what does this mean? For current homeowners in the Denver area, it’s great news, as the value of their homes is increasing so they can feel more confident about their personal wealth. For those looking to relocate to Denver or are interested in buying a home, the situation is a little tricky.
As home values rise, prospective buyers are encouraged to buy sooner rather than later with the average home price in Denver at $256,800 in July and climbing. Already home values in the Denver Metro Area have gone up 12.6% over the past year and they are expected to continue to rise.
And although home values are at an all-time high, renting may not be the more affordable option in the long run at this point as rents have been climbing during the recession. According to a Zillow report, rents are up almost 10% in this past year, which eats up about 31.8% of the median Denver Area income (that’s up from 20% in the past). This is compared to the median home price which would eat up about 18.9% of the median Denver Area income.
Despite the price index all-time high; however, June’s house value numbers increased at the slowest rate year over year since October 2012, which gives many hope that housing prices are normalizing to rise at about the rate they were before the housing bubble of the past decade.
If you’re interested in buying or selling in Denver, or the surrounding areas, contact Brian MacMillan to help you navigate your way through the housing market.