Friday, July 16, 2010

1st Quarter Home Price Summary: Home prices indices fall in Colorado's metro areas

FHFA shows measured price declines

Metropolitan home prices in Colorado, based on home sales and on mortgage refinances, showed declines in all metro areas of Colorado. According to the Federal Housing and Finance Agency's first quarter 2010 home price report, Grand Junction and Greeley showed the largest year-over-year declines in home prices with index drops of 10.9 percent and 4.91 percent, respectively.

Pueblo showed the smallest decrease with a fall of 2.54 percent, with Fort Collins-Loveland showing a similar drop of 2.94 percent.

The overall Colorado index, based only on home sales and excluding refinances, showed increases in the Colorado home price index. Since the Colorado index peaked during the second quarter of 2007, the index has fallen 4.1 percent, but it has risen 1.5 percent since the first quarter of last year.

Although home values across the state are down year-over-year, several Colorado metro areas have shown significant price increases over the five-year period since 2005. Comparing to the first quarter of 2005, Grand Junction showed the largest gains with home prices rising 23.06 percent, while Colorado Springs showed gains of 4.82 percent. Only the Greeley area showed home price losses over five years with a 5-year drop of 10.3 percent.

It is likely that Grand Junction's substantial home price increase over the past five years reflects a delayed downturn in the real estate markets given the prevalence of oil and gas activity that continued into 2008 while much of the state was experiencing significant declines in home sales activity and high numbers of foreclosures.

Greeley's value losses over five years reiterate the fact that Greeley was one of the earliest communities to feel the impact of foreclosures and declining demand for for-sale housing.

For all metro areas, the one-year percent changes were:

Colo. Springs, -3.36%
Denver-Aurora, -3.65%
Ft. Coll.-Loveland, -2.94%
Grand Jct., -10.9 %
Greeley, -4.91 %
Pueblo, -2.54 %

For all metro areas, the five year percent changes were:

Colo. Springs, 4.82%
Denver-Aurora, -.03%
Fort Coll.-Loveland, 0.38%
Grand Junction, 23.06%
Greeley, -10.30%
Pueblo, 3.47%

Single-family home prices increase, while condos and townhouse prices drop during the first quarter

The FHFA data shows re-finance activity, but home sales as reflected by broker listings in the MLS data shows statewide increases in median home prices of 3 percent for single-family homes and a 25% drop in median prices for townhomes and condos.

The number of transactions statewide increased 5 percent for single-family homes and increased 22 percent for condos and townhomes. Single-family median prices incrased from $206,667 to $212,500, while condo and townhome median prices fell from $195,000 to $146,667.

In metro Denver, median single-family prices increased 18 percent and the number of units sold increased 1 percent. Year over year in metro Denver, the median single-family price increased from $190,734 to $224,207. Condo and townhouse prices increased 12 percent while the number of units sold increased 14 percent. Condo and townhouse median prices increased from $118,723 to $132,800.

Metro Denver reported the largest increase in single-family median prices, while Loveland reported the largest decline with a drop of 15 percent from $233,333 during the first quarter of 2009 to $197,500 during the 1st quarter of this year.