Median home price dropped in August

Pikes Peak region home prices fell last month, a possible sign the area’s housing slowdown is starting to erode home values as some experts have predicted.

The median price of homes sold in August dipped to $220,000, down 2.2 percent when compared with the same month last year, according to figures released today by the Pikes Peak Association of Realtors.

The median is the midpoint of all prices, with half of all home sales in August carrying a price tag of less than $220,000 and the other half selling for more. The median is considered more reliable than the average, which can be skewed by a few very high or low sales.

It’s the second time in the last six months that year-over-year home prices have fallen.

The supply of homes for sale totaled 7,052 in August, a 16.7 percent increase over the same period last year. Sales, meanwhile, fell 21.1 percent to 945.

The figures reflect only single-family homes that had transactions handled by real estate agents, and don’t include homes sold by owners. Most of the sales in August took place in El Paso and Teller counties, although a few from other Front Range counties were included in the Realtors Association report.

Too many foreclosed homes coming back on the market and reduced demand have contributed to swollen numbers of homes for sale, which could be driving down home prices, some real estate agents and economists have said.

But they also said it takes several months to show a trend in home prices.

For a complete report, see Saturday’s Gazette.

CONTACT THE WRITER: 636-0228 or rich.laden@gazette.com