Earlier this summer Denver was listed as one of the top 10 best markets in the country for millennial homebuyers by the National Association of Realtors. According to the association’s research, 15.7 percent of the Denver metro population in the years between 2010 and 2012 were millennials — typically defined as people born after 1982 — and the growth in private payroll jobs from May 2013 to May 2014 was 2.7 percent, contributing to an overall unemployment rate of 5.9 percent.

However, the availability of homes continues to be a problem for young homebuyers in Denver, with a 20 percent drop in inventory year-over-year in May.But the ever-increasing population of people under 35 in the area means that millennials will inevitably become part of the home-buying equation.

What is happening in Denver though is a classic case of supply and demand. Prices have skyrocketed over the last few years leaving many new home buyers, including the millenials wondering if they can afford a new home. Metro-area home values hit another all-time high in May — good news for people who already own houses but bad for businesses trying to lure workers from other cities.

The S&P/Case-Shiller Home Price Indices reported Tuesday that Denver’s home price index reached 152.58, ticking past previous highs of 150.58 in April and 148.18 in March, and up 8.2 percent from May 2013.

The Case-Shiller Index, a closely watched measure of real estate values, tracks the resale of houses in three price tiers over time and does not include condominiums. The 152.58 level means that home values in May were, on average, 52.58 percent higher than in January 2000, the benchmark month.

“If you live here and own a house, it’s great news,” said Metro Denver Economic Development Corp. CEO Tom Clark. “If you are trying to come in from the Midwest or Texas, it’s a challenge. For many folks it can be sticker shock.”

Bottom line, rising house values mean it is a great time to sell your house in Denver, but if you are trying to invest in the area, don’t expect any great deals just yet. According to data provided by Zillow, home prices averaged $253,000 in metro Denver in May exceeding the pre-recession peak.

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