Colorado Mortgage Broker: Home Sale Data Deceives

The number of Denver housing market sales that closed in February was down from January by nearly 13 percent, according to data released Tuesday by Denver-based Metrolist Inc.

But independent real estate broker Gary Bauer says there’s no reason to be alarmed.

“Here’s the reason why the January numbers were higher than February: Many closings that were scheduled for December had to be moved to January” because of the severe winter weather, Bauer said.

Title companies, banks and Colorado mortgage brokerages were all closed on days they normally would be open due to the blizzards that hit the Denver area the last two weeks of December.

“February historically would have been higher [in sales than January], but closings were delayed one to two weeks,” Bauer said.

Thus, 3,090 home sales were closed in February as compared with 3,540 in January. Homes placed under contract, however, jumped in February from 4,292 in January to 4,929, an increase of nearly 15 percent.

Average home prices in Denver were down for single-family homes. The average price in February was $292,143, down from $297,368 in January. Compared with February 2006, when single-family homes sold for an average of $305,017, the drop was even more significant.

“Prices are down a little. We’re seeing a little impact by the foreclosures,” Bauer said.

Compared to other parts of the nation, Denver is holding steady, though, he said. Those seeking any sort of home mortgages should not hesitate to come to the region.

“In some markets they’re incurring 10, 20 or 30 percent reduction in values,” Bauer said. “Denver usually runs counter-cyclic to the national trends.”

He noted that with home inventories very high among new home builders throughout much of the Denver area, many are offering incentives to entice the first-time home buyer, a change in strategy that could impact the re-sale market in the months ahead.

“We’ll just have to watch what happens,” Bauer said.