Tuesday, June 26, 2012

Condo prices head up in Colorado in April 2012

The median price for condos and townhomes in the metro Denver area increased 5.6 percent, year over year, in April 2012. According to home price information for condos and townhomes, released by the Colorado Association of Realtors, the median price in the region rose to $130,591 from April 2011's median price of $123,579. Statewide, the median price rose 9.6 percent, rising from April 2011's price of $127,529 to April 2012's price of $139,803. In the Pikes Peak region, the median price rose 2.9 percent to $125,651 during April, rising from April 2011's price of $122,000.(The monthly median prices discussed in this article are 3-month moving averages.)

As can be seen in the first graph, the larger trend is on in which condo prices continue to slide from peak levels reached back in 2006. Unlike single-family prices which quickly fell in 2009 and then rebounded somewhat, condo prices have seen a long slide over the past several years. The largest decline is seen in the statewide condo prices, and this is likely due to large dropoffs in prices for condo found in several mountain communities.However, we see a larger increase in the statewide median price during April. 

As expected, the data shows that prices in condos and townhomes are significantly lower than single-family home prices.  In recent months, the statewide median price had fallen below that found in both metro Denver and in the Pikes Peak region, but surged in March and April. 

The second graph shows year over year changes in median home prices for condos and townhomes. April 2012 was the first month to experience year-over-year increases in all three areas measured since December 2009. Since 2010, year-over-year changes have been mostly negative, although the Pikes peak region has shown increases inspire of declining numbers of transactions.