Denver’s home prices are at the highest level in five years, according to the S&P/Case-Shiller Home Prices Index released last week.
The city’s home prices increased for nine straight months at a pace that surpassed 75% of the markets in the index.
And the report works by assigning index values to 20 cities by comparing their average home prices to what they were in January 2000.
With that benchmark, the Case-Shiller index matches prices for thousands of single-family homes.
“The principal variable used for index calculation is the price change between two arms-length sales of the same single-family home,” according to the index. “For each sales transaction, a search is conducted to acquire information on any previous sale of the same property.”