Denver is one of the strongest cities in the index showing only a 0.1% decline.  While no one likes to hear "decline" this is very modest, relatively speaking, and continues to provide evidence that the region is stabilizing. There is definitely some impact from foreclosures, but, the overall market is doing okay.  The activity related to the First Time Home Buyer Credit helped boost demand for moderately to entry level priced homes; this is demonstrated by the numbers.  Areas of Denver and Colorado Springs have seen 5 to 15% appreciation year over year which balances out the negative impact of the foreclosures.  Another market which has seen less than 1% decline is Dallas, Texas, which has seen similar activity.

Las Vegas and Phoenix continue to have monstrous declines year over year with Las Vegas matching home values not seen since 2000. Minneapolis has pulled out of its nose dive with numbers that are improving year over year so that its loss is posted at 8.4%.  Seattle, Tampa and Chicago are still posting home value loss over 10% much to the dismay of locals. 

Some of the panic is concern over a double dip in the housing market since the federal aid that is propping up the secondary market will expire mid-2010.  The only double dip ever seen in the housing market occurred in the 1980's without any government interference.  The major difference at this time is the federal government is actively trying to ease the pain of the foreclosure tidal wave so that it comes in smaller more manageable waves with the idea that local markets can better handle this sort of activity than two major market crashes.    We continue to hold firm in our belief that the only sensible way to digest this data is taking it in the perspective of our local market.  The Colorado Springs market is quite resilient and will continue to be because the market did not have a dramatic bubble through the early and middle parts of this past decade.  If there is a particular area of the Pikes Peak region you are interested in following, be sure to register on this page for a monthly report delivered to your inbox.