Denver metro home values expected to rise $21.4 billion in 2012

December 21, 2012

Denver Post

A new report shows that metro Denver home prices regained a big share of their value in 2012, and local analysts say 2013 should continue the trend.

Metro Denver home values are expected to finish 2012 with a gain of $21.4 billion for the year, and U.S. homes nationwide are expected to gain more than $1.3 trillion for the year, according to an analysis by Zillow Real Estate Market Reports.

The Zillow report, released Thursday, characterized the nationwide annual price gain as the first in more than five years and the largest since 2005.

Overall, U.S. homes will reach a projected value of $23.7 trillion, up 6 percent from the end of 2011. Last year, cumulative home values fell almost $792 billion from 2010.

The projected value of all homes in the Denver area at the end of 2012 is $242.5 billion, meaning the projected gain for the year is 9.7 percent.

Ron Throupe, an assistant professor at the University of Denver’s Burns School of Real Estate and Construction Management, said he wouldn’t argue with Zillow’s data.

“We know Denver has done well this year …,” Throupe said. “Of course, some markets across the country got hit very hard, so it’s not difficult for them to have a percentage gain that’s very significant.

“We’ve had price increases and low inventories in the Denver area this year, and I expect an even tighter market in the spring. In fact, I see good numbers next spring and summer — a strong season coming.”