Tuesday, January 17, 2012

Median condo and townhome prices flatten statewide and in Colo Springs area

The median price for condos and townhomes in the metro Denver area increased 0.7 percent, year over year, in November of this year. According to home price information for condos and townhomes, released by the Colorado Association of Realtors, the median price in the region rose to $125,900 from last November's median price of $125,000. Statewide, the median price fell 8.18 percent, falling from November 2010's price of $136,600 to November 2011's price of $125,400. In the Pikes Peak region, the median price rose 0.8 percent to $127,500 during November, rising from November 2010's price of $126,400.

Condo and townhome prices remain well below peak median prices in each region. The statewide median price for condos and townhomes in November was down 46 percent from the March 2006 peak of $236,200. In metro Denver, the median price in November was down 22 percent from the July 06 peak of $163,300, and the Pikes Peak-area median price for condos and townhomes in November was down 21 percent from the September 2007 peak of $162,300.

The first graph shows the median home price in each area for each month since 2006.

Condo and townhome prices do not appear to have stabilized as single-family homes have, and median prices appear to be continuing a slow downward trend. The substantial declines in statewide median prices for condos and townhomes are likely being pushed downward by significant drops in median prices for condos and townhomes in many mountain regions following the 2008 financial crisis.

The second graph shows year over year changes in median home prices for condos and townhomes. The last two months have shown some very small increases in all three areas, although it remains to be seen whether these brief increases will become a trend. Until October 2011, all three areas had reported declines in the median home price every month since February 2011. The overall trend in home prices among condos and townhomes over the past year has been down, although the recent increase in metro Denver does point toward some added stability in the Denver metro market.