A Decade of Denver Home Prices


Central Denver Housing Prices

The sensational news stories that housing prices have “rewound” to 2001 prices, and that we are in a double-dip housing catastrophe certainly grab our attention.  The truth of the matter, at least for central Denver, is that we have continued to plod along a fairly flat trajectory over the past two and a half years, and housing prices today are about what they were in early 2005.

Based on data that we gathered from Metrolist we graphed the annual percentage growth in Central Denver from 2000 to 2011.  Central Denver is defined as Colfax to Hampden and Quebec to Broadway (Congress Park, Wash Park, Hilltop, Cherry Creek, etc.).  This area includes such neighborhoods as Park Hill, Hill Top, Congress Park, Wash Park, and Cherry Creek.  We used 2000 as our baseline.

You can see that  between 2000 and 2005 our homes on average appreciated almost 61% — a compounded annual rate of return of about 10%.

Today we are up 45.22% over 2000 prices, or a compounded annual rate of return of about 3.6%.  Of course if you purchased at the height of the market in 2007 at the average central Denver price of $487,000 and sold this year, you would need to cover a 9% or $48,656 spread.

You will also notice that in 2010 prices ticked up slightly and then dropped back down to 2009 prices in 2011.  We attribute this to the government’s now expired home-buyer tax incentives.  Nothing of substance has changed in comparison to the previous two years.  We continue to bounce along the bottom.  So, no need to get out your rifles, beans, water filters and duct-tape; the world has not come to an end.

These numbers are definitely generalizations, it’s really all about price point.  If you or someone you know is looking to purchase or sell a home, we would certainly appreciate the opportunity to be of assistance.
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