Report: Denver sees nation's sharpest drop in home values
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More metro Denver homes lost value over the past year than in any other major U.S. metro, a recent Zillow analysis shows.
Why it matters: It's a major reversal in a market that spent the pandemic shattering price records. Still, most homeowners "have plenty to feel good about," the real estate site reports.
What they're saying: "While fluctuations in home values can distress watchful owners, the vast majority are sitting on large equity gains that they can take advantage of when they sell," Zillow chief economist Mischa Fisher tells Axios.
By the numbers: 91% of metro Denver homes lost value over the past year — the highest share since at least 2012.
- That's up from 20% a year ago and just 1% in 2019, before the pandemic sent prices soaring.
Zoom out: Colorado's other Front Range cities aren't far behind, including Colorado Springs (85.8%), Greeley (85%), Boulder (84.4%) and Fort Collins (82%).
Context: The state's downturn reflects a regional trend across the West and South, where swelling inventory and growing climate risks have cooled once white-hot markets.
- In most major metros across those regions, at least half of homes lost value in the past year, Zillow found.
- Austin (89%), Sacramento (88%), Phoenix (87%) and Dallas (87%) trail just behind Denver.
Yes, but: Not every Colorado market is seeing slumps so steep. Grand Junction saw values decline in 47% of homes — better than the national average of 53%.
The big picture: It's a homebuyer's market right now, if you can afford it. Nationwide, sellers now outnumber buyers by a record 37%, Redfin estimates.
Go deeper: Where homes are losing value most