Friday, August 28, 2015

COTD: Metro Denver Home Prices Head Up in FHFA Index

The Federal Housing and Finance Agency has released it Expanded-Data home prince index data through the second quarter of 2015. The latest data shows the largest year-over-year increase in Colorado home prices since 2001.  The first graph shows the YOY change for both Colorado and the US. note that home price growth in larger in Colorado than is the case nationwide. 

In Colorado, the YOY home price growth, according to this index, was 11.2 percent from the second Q of 2014 to the same period of 2015. That's up from 9.9 percent for the 1st Q of 2015. YOY changes in the index for Colorado has generally been above 9 percent since the 4th Q of 2012.   

For the US overall, the YOY change for the 2nd Q of 2015 was 6.2 percent, which was up from 6.1 percent measured during the 1st Q of 2015. 

The second graph shows the index values themselves since 2001. We see that both the US and Colorado have generally followed the same growth pattern over the past 15 years, but since 2012, Colorado has increasingly been outpacing the US. 

With a relatively small amount of new home construction, coupled with a continuing inflow of new residents, it is no surprise that home prices have begun to outpace the nation since the nation overall is not sustaining the type of population growth has experienced in recent years.