The past five years have seen weak nominal price growth resulting in falling real prices. The Denver mortgage-debt-to-income ratio has remained steady throughout the past five years despite a national increase, indicating there should be little to no concern about an Denver market bubble. Despite this fact, 2006 finished with the largest nominal price drop on record and the second largest real price drop on record (1987 experienced a larger drop). Denver is as a paradox of positive affordability ratios with negative local consumer sentiment due in part to high foreclosure ratios. Consequently, nominal and real prices should be expected to stagnate and remain near the historic level of mortgage debt servicing cost.

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