(The Center Square) – Colorado is among the top 10 states for home price growth in April, according to a recent price report.

Home prices in the Centennial State grew by 21.4 percent over the last 12 months, the latest data from CoreLogic Home Price Insights report said. That puts Colorado slightly behind states such as Utah, Georgia, and Montana. Florida led the nation with a greater-than 32 percent increase to its home prices. 

Denver saw its home prices jump by 21.7 percent year-over-year in April, the report found. That home price growth figure was good enough to rank Denver fifth out of the top 10 large metro areas. Phoenix, Ariz. led the way with a more than 29 percent increase. 

“The record growth in home prices is a result of a scarcity of for-sale inventory coupled with eager buyers who want to purchase before mortgage rates go higher,” CoreLogic CEO Patrick Dodd said. 

Cities across Colorado have struggled to increase their inventory levels since the pandemic-led housing boom began in late 2020. According to the latest data from the Colorado Association of Realtors (CAR), there were just over 7,000 active listings in April, representing a 5.4 percent decline from April 2021. 

Statewide, Colorado has just 0.9 months of housing inventory, CAR data shows. For comparison, the Federal Reserve Bank of St. Louis defines a “healthy housing market” as one that has at least six months of available supply. 

The low inventory levels have helped push Colorado’s median sale price up to $600,000 in April, a 19.6 percent year-over-year increase. The market has also grown more competitive as home sellers are receiving 104.9 percent of the list price from buyers, a 1.3 percent increase from last year. 

Dodd expects the market to begin cooling off as the Federal Reserve continues to increase interest rates to combat inflation. 

“With 30-year fixed mortgage rates much higher now, we expect to see waning buyer activity because of eroding affordability,” Dodd said. “As a consequence, our forecast projects slowing price growth over the coming year.”