The Case-Shiller Home Price Index was released last week with results through last November. Nationally home prices appreciated 9.5% over the past 12 months. The 20-City Index increased 9.1% over the last year. Here in Denver home prices appreciated 8.04% from November 2019 to November 2020. Since 2011, Denver home prices have appreciated 95% since December 2011 as home prices started to appreciate in 2012.
Next, the Federal Housing Finance Agency or FHFA, who oversees Fannie and Freddie released their house price index which measures home price appreciation on single-family homes with conforming loan amounts. Thus, this report reflects far fewer $1 million homes. This report revealed price appreciation of 11% across the country as of November. Denver came in #57 with appreciation of just 7.7%. This really surprised me that Denver is a “middle-of-the-pack” city when it comes to home price appreciation. The top market was Boise ID at over 16%.
Zillow also released a new forecast for 2021 and they believe home prices across the country will rise by 10.5% this year. They also believe home sales will increase by 21%. They may be correct on the first number, but I can’t imagine home sales will increase that much unless inventory levels increase by over 50% across the country. Zillow is predicting that metro Denver home prices will increase by 7.6% this year after values rose 8.3% in 2020