Some Home Prices Are Actually Rising in Denver

By Luke Mullins

Posted: April 4, 2008

What are you seeing at the state level?
Most of Colorado is pretty good. But so much of the population is centered in Denver that that drives that overall state number [down].

The map reflects the price change for detached, single-family homes over the past year, according to Integrated Asset Services.

What's behind the divergence in home prices in the various parts of the state?
In Grand Junction, there is a mountain effect. The mountain effect is caused by second-home buyers—typically very affluent. Those types of groups are fairly risk averse relative to pricing changes. It's a supply/demand issue there. And then Grand Junction also has an economic boom because of the oil and gas industry. When you go north into the Fort Collins-Greeley area, that's an area that was hit hard 18 to 24 months ago. Since then, two major employers have moved into the area, stabilizing the economy and bringing in external growth. Colorado Springs, on the other hand, has had the opposite kind of trending in the last 12 to 18 months. They have lost some key employers, and they may just be on the first part of some reductions in price appreciation.

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