The rebound we re seeing is amazing considering where we were just 12 months ago. Roughly 13% increase in average price year over year!!! We are quickly approaching 2006 peak pricing.
All indicators are up again and there is no indication of the typical slowing we see in the winter months. Since inventory is still extremely tight, the trend should continue upward.
My recent analysis of the Case Shiller index indicated we were just 5% off the market peak metro area-wide. A recent Denver Post article reports that within Denver proper, pricing has returned to the peak levels of 2006!!!!!
Home sales soar in October – Inside Real Estate News
The demand is clearly there, yet the supply side is not yet catching up – many people are still not selling. My thought is the fundamentals of the Global and National economic picture are still shaky and people are still concerned about their finances and the job market, so they don’t want to take on risk or expense of upgrading and moving even if they could sell at past peak levels.
With the fundamentals of the economy unlikely to change in the near term, I predict the tight supply will continue – meaning we may surpass the 2006 peak sooner than later.