October Active Listings Drop, Home Prices Rise in Denver Housing Market

With sales slowing throughout the Colorado housing market, builders are trying to offer incentives to potential owners. But here’s a more likely way to reverse the selling fortunes in the area:

Lower prices.

The opposite took place in October, according to the Colorado Association of Realtors, as the average price of a single-family home in Denver went up compared to the previous month - from $245,089 in September to $247,459 in October.

The average price of a condo, however, dropped - from $158,833 in September to $154,060 in October. This could lead to an increase in Colorado mortgage applicaations from potential borrowers interested in condos, because at least those prices are coming down.

There were 30,753 active listings in October for both single-family homes and condos, as compared with 32,495 the previous month.

Numbers compared with October 2005 confirm a slight erosion of home values during the past year. The average price of a single family home a year ago was $250,822. The average price of a condo was $157,427.

The total number of active listings, however, is on the rise from a year ago, most likely as a result of the increasing numbers of foreclosures. There were 30,753 active listings in October as compared with 27,323 a year ago.

There’s also the issue of competition from nearby states. Many mortgage applicants are considering the Utah housing market these days due to its affordability.