According to the latest S&P CoreLogic Case-Shiller House Price Index for Denver, the Denver metro’s metro home price annual growth rate reached a new high in August of 21.5%, barely surpassing the previous record 21.3% gain in July.
But the monthly change in the Denver house price index in August was half the monthly rate seen in July, 0.9% versus 1.8%, indicating that future growth, while strong, will not be as robust. …
Denver’s annual gain has outpaced overall US house price gains by 19.8%. But there, too, the monthly growth slowed down, falling from 1.7% in July to 1.2% in August.
“In August 2021, the US housing market continued to grow,” said Craig J. Lazzara, head of global index investment strategy at S&P DJI in comments to the monthly report. “Each of our urban and composite indices is at an all-time high and year-on-year price growth remains very strong, albeit slightly slowing down from last month’s levels.”
Lazzara said the response to the pandemic is likely to spur a high rate of price increases as city apartment residents buy suburban homes. It remains to be determined whether these purchases represent the demand that would have arisen over the next few years anyway, or whether they represent a fundamental shift in the locations preferred by buyers. This second scenario will provide more support for future achievements than the first.
“The August figures are consistent with any explanation,” he said.
Phoenix has the strongest growth among the 20 metros at 33.3%, followed by San Diego at 26.2% and Tampa at 25.9%.
“While demand remains strong and buyers still tend to pay more than the asking price for homes, the slowdown in home price growth suggests that buyers are fatigued, especially in the case of higher-priced homes where prices have risen. has been accelerated compared to the previous month. more compared to low-end homes, ”says Selma Hepp, Deputy Chief Economist at CoreLogic.