Thursday, March 1, 2012

Condo prices in January down again in metro Denver, statewide

The median price for condos and townhomes in the metro Denver area decreased 4.2 percent, year over year, in January 2012. According to home price information for condos and townhomes, released by the Colorado Association of Realtors, the median price in the region fell to $115,106 from January 2011's median price of $120,227. Statewide, the median price fell 35 percent, falling from January 2011's price of $1662,857 to January 2012's price of $105,833. In the Pikes Peak region, the median price rose 7.4 percent to $138,182 during January, rising from January 2011's price of $128,571.

Condo and townhome prices remain well below peak median prices in each region. The statewide median price for condos and townhomes in January was down 55 percent from the March 2006 peak of $236,200. In metro Denver, the median price in January was down 29 percent from the July 06 peak of $163,300, and the Pikes Peak-area median price for condos and townhomes in January was down 15 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, except perhaps in the Pikes Peak region, and median prices appear to be continuing a slow downward trend statewide and in metro Denver. 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. October and November 2011 showed some small increases in all three areas, although all three areas declined again during December, and only the Pikes Peak area showed an increase in January 2012. 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 January year over year increase was the largest seen in the region since 2008. The small sample size for Colorado Springs condo sales, however, which ranges from 70 to 100 sales in recent years, adds volatility to the numbers.