Despite recent market slowdown, local home prices show steady growth
With all the news of a slowing Denver real estate market, here’s a positive real estate perspective for your weekend.
Let’s take a look at the big picture (see graph below). Despite the articles flying around newspapers and the internet about the stalling local housing market, buying and owning a Denver home is still a great longer-term investment.
The value of Denver homes is still growing, just at a less brisk pace set in the last several years. The graph below provides a 30,000-foot-view of homeownership that should warm all the hearts of those who fervently believe in the American Dream. Over time, home values undeniably appreciate.
This graph shows the House Price Index (HPI) from January 1991 to present. The HPI is a broad measure of the movement of U.S. single-family house prices. Published by the Federal Housing Finance Agency (FHFA) using data from giant U.S. home loan guarantors Fannie Mae and Freddie Mac, it also provides an analytical tool for estimating changes in mortgage rate defaults, prepayments and housing affordability. For more stats visit the FHFA site.
The news brightens when looking just at Colorado. In the twelve months through second quarter 2018 Colorado homes saw a price appreciation of 9.56 percent, the sixth most of all U.S. states!
Now, here’s to keeping our eye on the big picture and enjoying the fall Colorado weekend.