Wednesday, June 13, 2018

Denver Housing Market Resumes Upswing after Healthy Consolidation

(Click on the image to enlarge)
After a rapid rise in home prices in early-to-mid 2017, the Denver market experienced a healthy consolidation for several months, following which the upswing resumed. Both trendlines are confirming the data line as well as the recent sharp reversal.

In fact, the normalized trend (bottom chart) has already breached the $280/SF resistance, sending strong signals about the resumption of the upward trend, backed by the resilient fundamentals of the underlying market. The linear trendline proves the linear growth. The formation of the upsloping double bottom is very bullish. 

Since the overall trend has been linear during this 14-month period, any good news (e.g., flattening yield curve) could push the curve back into an overdrive mode, with a much steeper slope.  

Note: This analysis covers the City of Denver, not the entire Denver County.

- Sid Som, MBA, MIM
President, Homequant, Inc.
homequant@gmail.com

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