Colorado is widely regarded as one of the most desirable states in which to live. Our mild, sunny weather and gorgeous views make it easy to understand why our state is so beloved. Boulder County is especially sought after, and we’re home to a luxury market that offers remarkable, distinctive finds. If you’re a homeowner in Colorado or you’re considering purchasing property here, there’s no doubt that you’ll want to learn more about our market trends. The House Price Index (HPI) published by the Federal Housing Finance Agency (FHFA) is an analytical tool to help you gain a deeper understanding of economic trends and property values in your state. Interested in learning more about this measure, and how Colorado ranks among other states? Here’s what you need to know:
Details About the House Price Index
The House Price Index serves as a means to measure the movement in the price of single-family homes in the U.S. The Federal Housing Finance Agency analyzes and publishes data provided by Fannie Mae and Freddie Mac on a monthly and quarterly basis. The HPI collects mortgage data on the same properties on a repeating basis to show the rate of change in price over time.
What We Can Learn From HPI
Although HPI isn’t a flawless measure, it does help investors understand broad economic trends. Home prices are generally a reliable indicator of how the economy is performing. When prices are on the rise, this often indicates job growth, high consumer spending, and healthy consumer confidence. On the contrary, falling home prices historically signal recession and other economic pitfalls.
Graph snippet via fhfa.gov – click HERE to view the full graph
How Colorado’s HPI Measures Up
According to the FHFA’s most recent analysis, Colorado takes the eleventh spot in terms of annual HPI. Home prices in Colorado have appreciated 6.40% in the past year, indicating a strong housing market and local economy. Keeping in mind that HPI tracks prices of the same homes over time, this data suggests that investing in Colorado property is a solid choice. Many cities in Colorado have experienced impressive appreciation of home prices. Since quarter one of 1991, Boulder’s home prices have risen by 426.42 percent. Denver/Aurora/Lakewood homes closely follow Boulder’s growth with an appreciation of 390.15 percent since 1991. Fort Collins and Greeley boast similar stats of 354.31 percent and 316.81 percent, respectively. If this trend continues, homeowners in Colorado can expect their investment to increase in value each year. To view the full breakdown of HPI by quarter, year, and city, please visit this site.
According to the FHFA’s most recent reportings, Colorado’s HPI indicates that our state is an excellent place to invest. If you’re intrigued by the idea of moving to our state or adding more property to your investment portfolio, don’t miss out on the opportunity to explore Boulder’s luxury market. Our city is home to an unbeatable local culture and world-renowned dining, entertainment, and natural beauty. Interested in finding or listing your perfect Boulder home? Contact my team to learn more.
By Jennifer Egbert. Jennifer is the founding Realtor of the Boulder branch of milehimodern. She specializes in Luxury neighborhoods, home builders and current market conditions. Visit jenniferegbert.com, e-mail [email protected] or call 303.619.3373.
