Maybe, except for Denver
Graphic courtesy of qz.com
Since home values nationwide took a nosedive about six or seven years ago, housing prices have really made a comeback. So much so, in fact, they've exceeded peak levels from heady pre-recession days in many places.
Take Denver, for example: The metro area's average home value hit $245,200 last month, an all-time high. Despite steadily increasing asking prices and modest interest rate hikes, however, demand seems to be through the roof. According to a local realtor interviewed by the Denver Post (see link above), residential properties in the area average about 25 days on the market before being sold, a far cry below national averages of 102 days, often with multiple offers above asking price.
As is typically the case, Denver's swelling home values match the area's soaring rent prices, which makes investing equity in a home all the more attractive. Buyers can still take advantage of considerably low interest rates below 5 percent and government programs to get their foot in the door, both figuratively and literally. That is, as long as they aren't outbid by someone with a higher percentage down upfront.
In other regions across the U.S., prospective buyers aren't biting at rising home prices, suggesting a weakening housing market - see graphic above. There was much speculation that perhaps just a harsh winter was stalling the market, but even after temperatures warmed, it appears buyers may be getting priced out of home values they can't afford.
Does all this mean that home values may finally start dropping? Only time will tell. If you live in a red-hot market like Denver, though, don't expect the meter to fall too much.
To check out where home prices in Denver metro are hottest or coldest, visit Trulia's "Heat Map" here: http://www.trulia.com/home_prices/Colorado/Denver-heat_map/
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