For the fifth straight month, year-over-year average gains in home-resale prices across metro Denver eased in June from the previous month’s pace.
That’s according to the latest S&P/Case-Shiller Home Prices Indices report, released today.
Home prices are still rising in metro Denver at a pace faster than most cities, the closely-followed monthly report series indicates. But the pace of that increase has been slowing gradually since January.
Metro Denver’s average home resale prices were up 7.6 percent in June from a year earlier, today’s report says.
That follows year-over-year gains of 7.9 percent in May, 8.2 percent in April, 8.4 percent in March, 8.5 percent in February and 9.2 percent in January, as relayed in previous reports.
Still, June’s gains from a year earlier outpaced the average price increase for 20 major cities tracked by Case-Shiller of 5.7 percent. The national gain was 5.8 percent.
The only major metros to see greater year-over-year gains in June were Seattle (up 13.4 percent), Portland (up 8.2 percent) and Dallas (up 7.7 percent), while Detroit tied Denver’s 7.6 percent increase, the report said.
As for month-to-month price gains, Denver was up 0.8 percent in June from May levels, in line with the 20-city average of 0.7 percent and the national increase of 0.9 percent, not seasonally adjusted.
Denver’s monthly price gains in June were smaller than May’s 0.9 percent and April’s 1.2 percent.
Denver’s Case-Shiller home price index in June rose to a new record of 199.89. That means that local home resale prices averaged 99.89 percent higher than they were in the benchmark month of January 2000, according to the Case-Shiller report series, based on non-seasonally-adjusted data.
Nationally, average home-resale prices hit a record high for the seventh straight month, the report said.
Analyzing the national trends, David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, said in the report that “price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house is on the market have declined for four to five years. Currently the months supply of existing homes for sale is low, at 4.2 months. In addition, housing starts remain below their pre-financial crisis peak as new home sales have not recovered as fast as existing home sales.”
But Blitzer added that while home prices are rising sharply, national unemployment is low, job growth is “robust,” wages are rising slightly faster than inflation and mortgage rates are under 4 percent.
Case-Shiller numbers for metro Denver cover a 10-county area: Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties.
The Case-Shiller index is compiled by comparing matched-price pairs for thousands of single-family homes in each market.
Prices are for resales of stand-alone single-family homes only, not for new construction or condominiums, and are meant to reflect price changes for comparable home inventory. Case-Shiller does not report actual home sale prices.
The index is produced by CoreLogic Inc. (NYSE: CLGX) and published by S&P Dow Jones Indices, a division of S&P Global Inc. (NYSE: SPGI).
Case-Shiller is one of several widely followed yardsticks of home sales prices. They use varying methodologies and often produce different results.