Yesterday, the highly publicized Case-Shiller Index for June and the second quarter was released. There was good news for the second month in a row for the 20 city national index and for Denver locally. For the Denver metro area Case-Shiller reported that our median home price rose 2.5% in the second quarter from the first quarter. On an annualized basis this would be a 10% annual increase!
Next, FHFA who oversees Fannie Mae and Freddie Mac, reported the following good news for the Denver metro area--
* 4th best results for the 25 largest cities with a median price increase of 1.24% in the second
quarter.
* 2nd best results for the 25 largest cities with a median price increase of .89% in the last
year.
Denver was one of only two large cities to report a median price increase in the last year. Why is this happening? I can think of four good reasons--
* Inventory levels are down and demand is up--Economics 101
* Interest rates are incredibly low.
* The $8,000 first time homebuyer tax credit
* Real estate investors are buying properties left and right, rehabbing the properties, and
reselling them for good profits, which is causing prices to rise in many hard hit
neighborhoods. This reminds of a survey I saw from 2007 that only 12% of first time home
buyers want to buy a "fixer upper", which leaves lots of inventory for investors to choose
from.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment