Below is an article found in the Monday, August 23, 2010 issue of the Denver Business Journal. If you have any questions or would like any more information please contact me at peggy@peggywolfe.com or call me at (970) 846-8804.
Western Slope leads Colorado in 2000s home appreciation, CSU-Realtors study says
The Western Slope had the greatest increase in home-price appreciation of any Colorado region in the last 10 years, at 68.5 percent, according to a recent study by Colorado State University’s Everitt Real Estate Center. The study was done in collaboration with the Colorado Association of Realtors.
The Mountain Resort and Northern Colorado areas also had large increases in home prices — at 43.2 percent and 30.6 percent, respectively, the EREC-CAR House Price Indices showed.
Metro Denver experienced the lowest statewide increase in home-price appreciation, at 7.1 percent for the 10-year period. But the Denver area was one of only two regions, in the seven statewide areas surveyed, to show positive home-price appreciation from 2008 to 2009, at 2.1 percent.
Metro Denver by county
Looking just at counties within the metro area in the past decade, Denver and Arapahoe counties reported the lowest appreciation — at 4.2 percent and .5 percent, respectively — while Adams County had negative appreciation of 2.7 percent. Adams has been the hardest-hit county in the metro area during the recent housing downturn, often reporting the area’s highest foreclosure rates.
Douglas and Broomfield counties showed the highest home-price appreciation in the decade, at 28.3 percent and 24.5 percent, respectively.
But from 2008 to last year in the metro area, Denver and Adams counties had the highest appreciation at 5.2 percent and 4.6 percent, respectively.
Study basics
The report data covers 1999 through 2009, and is the first joint housing study by CAR and CSU. The association and the university agreed last year to collaborate on producing regular reports about Colorado’s residential real estate market.
The recently released 2009 EREC-CAR House Price Indices report calculated change in home-price appreciation based on selling prices for houses as well as condominiums and townhomes. Researchers used information from county sales records, and other resources.
The data differs from similar information provided by groups such as S&P/Case-Shiller and the Federal Housing Finance Agency (FHFA) because it uses different parameters. The EREC-CAR index, for example, doesn’t include Elbert, Park, Gilpin and Clear Creek counties in the Denver metro area, while Case-Shiller and FHFA indices do.
The EREC-CAR report makes metro Denver a six-county area, including Adams, Arapahoe, Broomfield, Denver, Douglas and Jefferson counties. Boulder County, which often is regarded as part of the Denver area in studies, is included in this report’s Northern Colorado region, along with Weld and Larimer counties.
More numbers
Other data from the study:
• Broomfield County home values steadily increased for much of the 10-year period, but peaked in 2003 and dropped each year through 2008. But the county still had appreciation of 24.5 percent.
• Just from 2008 to ’09 in the metro area, four metro-area counties had increases in appreciation — Denver (5.2 percent), Adams (4.6 percent), Broomfield (2.3 percent) and Arapahoe (.9 percent). Douglas and Jefferson counties had negative appreciation of 3.9 percent and 2 percent, respectively.
• In addition to metro Denver, the only other area of the state to report positive appreciation in the last two years was the Mountain Rural region, at 2.2 percent.
• From 2008-2009, five Colorado regions included in the report had negative appreciation — Mountain Resort (15.3 percent), Western Slope (10.9 percent), Eastern Plains (7.7 percent), Colorado Springs-Pueblo (4.2 percent) and Northern Colorado (1.9 percent).
The Colorado Association of Realtors is one of the state’s largest real estate trade groups, with more than 21,500 members.
