Denver Home prices: Denver real estate leads the nation in home price percentage increases, according to the Standard & Poor’s/Case-Shiller Home-Price Index. Denver’s S&P/Case-Shiller Home Price Index yearly percentage change improved for the ninth consecutive month, falling only 0.1 percent between November 2008 and November 2009. As reported by Standard & Poor’s, “Denver and Dallas are nearing positive territory with their annual figures at -0.1% and -0.6%, respectively”. Home prices have benefitted from the increased activity in November when buyers rushed to purchase a home before the expiration of the first time buyer credit. It’s incredible that prices were preserved during that buying frenzy.With the extension of the first time buyer credit perhaps we’ll see even more improvement.

Reduced inventory can often be an indicator of the health of the housing market. Michael Strauss, chief economist at the Commonfund, defines a normal inventory level and talks about the national inventory, “We’re showing signs that we’re clearing out the excess inventory, but inventories are still high.

A more normal level would be 5.5 to 6 months”. Unlike the nation, inventory of residential homes and condominiums in the Denver Metro area is at a normal level, finishing 2009 with a 5.7 month-supply. In 2009, its inventory fell 8.9 percent from November to December, and dropped 16.0 percent over the last year.