A housing market report released by Clear Capital shows that the West region has been the front-runner of the recovery in the single-family housing market, with a strong year-end finish. The West region saw year-over-year growth of 11.8% and was the only region to see quarterly price gains in December, with 2.1% growth.
Denver has played a significant role in the strong regional rebound. The report shows that Denver’s housing price index had 1.6% quarter-over-quarter growth and gained 11% from the fourth quarter of 2011. According to another report released by Metrolist Inc., there were 3,400 Denver homes sold in December 2012, an 8% increase from the number sold in December 2011. The average December sales price was $289,926, which is 1% higher than November 2012 and 14% higher than December 2011. Additionally, the average number of days on the market fell 32% from the 107-day average in December 2011 to a 73-day average in December 2012.
Despite the strong recovery, we should expect a slight slowdown in 2013. The Clear Capital forecast of 2013 year-over-year growth in the West region is 2.8%, which likely indicates a moderating recovery as buyers adjust to a higher priced market. The Clear Capital report also predicts that the Denver/Aurora metropolitan statistical area (MSA) should see prices remain essentially flat with a 0.2% price drop. Overall, the housing market should continue to see upward growth, but at a more modest rate.
Photo: bbrown6 (flickr)