Denver Home Prices Fall as Colorado Mortgage Activity, Property Purchases Increase
For a few months now, those seeking Colorado home loans have shunned the Denver area for more affordable regions in the state.
But times could be changing.
The number of homes under contract was up nearly 25 percent in January in the Denver housing market last month, as compared with January 2006, according to figures released Tuesday by MetroList.
“People made their decisions in December when they were snowed in. They were sitting in their houses and saying to themselves, ‘I’ve got to get out of this place,’” said Lance Chayet, owner of Lakewood-based Hanover Realty.
A key component to the increased velocity of sales was lower prices. The average sold price for homes and condominiums combined was $266,066, a dramatic drop from December’s numbers and from a year ago.
In December, the average sold price was $288,916. In January 2006 it was $280,554.
The robust trading pace, Chayet said, “is being accomplished by dropping prices. Sellers are taking significantly less than the asking price.”
Fortunately, he added, there’s pent-up demand for Colorado mortgage loans among buyers who sat back and watched the market through the last quarter of 2006.
“Real estate businesses and health clubs have a lot in common. After the first of the year, everyone wants to lose 30 pounds and buy a house,” Chayet said.
Here’s a closer look at specific numbers:
- In January, there were 17,985 active listings for single-family detached homes in the metro area. Almost 3,400 are under contract, which is an increase of nearly 30 percent from December 2006.
- There were 6,365 condominium or attached homes on the market, with 912 of them under contract, also nearly a 30 percent increase in Colorado mortgage activity from the previous month.
- The average sold price for a detached home was $297,368, a significant drop from a year ago when the average sold Denver home price was $308,982. The average days on the market is 117, about 15 percent longer than a year ago.
- The average sold price for an attached unit was $170,440, also a strong drop from a year ago when condos were selling for an average of $192,271. The average days on the market is 131, which is two days less than a year ago.