Large home price gains in US west cities

Correspondent Cities in the US west have seen the largest home price increases in the country, according to the latest study by the Zillow Group. Fuelled by strong migration and low interest rates, Denver’s…

Large home price gains in US west cities

Correspondent

Cities in the US west have seen the largest home price increases in the country, according to the latest study by the Zillow Group.

Fuelled by strong migration and low interest rates, Denver’s house prices have grown more than the nation average for 13 years.

However, despite Denver’s growth, its biggest boost in house prices is unlikely to last much longer.

As soon as Seattle comes online, Denver’s has little chance of maintaining its current momentum, analysts say.

Annual home price appreciation in Denver fell to a record 0.8% in January, according to the Zillow Price Index. The slowing of the city’s price growth had been driven by buyers having trouble securing mortgages.

But experts say this is not a sign that the city’s growth has peaked.

“It’s showing we’re getting close to a slow down, which is expected,” said Jay Warne, a real estate attorney in the Denver area.

Mr Warne pointed out that traditional equity sales such as refinancing mortgages are being done at below normal levels.

“They’re not as eager to refinance. So that has been keeping home price appreciation lower than it normally would be. That’s not a sustainable story,” he said.

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