Housing prices and sales slipped in August, data show

Single-family home prices in Colorado Springs and surrounding areas continued their descent in August, while home sales also fell, according to a report released Wednesday by the Pikes Peak Association of Realtors.

But there were positive signs, too. The supply of homes for sale in the Pikes Peak region continued to dwindle from the same time a year ago, which Realtors association board Chairman Jay Gupta said is a crucial first step toward stabilizing the local housing market.

Like other areas, Colorado Springs' resale market and construction industry have been hit hard by the national housing slump, falling prices and rising numbers of foreclosures, although local values haven't fallen nearly as far as some cities that saw unrealistic run-ups in prices a few years ago.

In August, the median price of homes sold in the Pikes Peak region fell to $199,900, a 9.1 percent drop when compared with the same month last year. It was the 13th straight month prices have fallen from the same month a year ago, and the largest percentage decrease in the 15 years the Realtors association has been tracking median prices. The number of homes sold last month totaled 778, a 17.7 percent decline from August 2007.

It was the lowest monthly total for any August - typically a strong month because kids are out of school and families are buying and selling - since 769 homes were sold in August 1997, according to Realtors association records.

About nine out of 10 homes that sold in August went for $400,000 or less, a sign that the higher-end market remains slow, while lower-priced homes in good condition will attract buyers, even in a slow market.

The association's numbers reflect homes whose transactions were handled by its members, which represent the bulk of homes sold in the area. Most of the homes were sold in El Paso and Teller counties, with a handful in Pueblo, Douglas and other counties.

The supply of homes for sale in August totaled 6,323, a 10.3 percent decline from the same month a year ago. Likewise, the number of first-time listings added to the resale market in August fell 26.3 percent from a year ago to 1,395.

Real estate experts point to the shrinking supply as good news for the market; fewer homes on the market mean housing prices eventually will rebound.

Locally, the number of days that homes spent on the market before being sold in El Paso County averaged 79 in August, unchanged from the same month last year.

Of all Pikes Peak region homes that sold in August, a little more than two-thirds sold in 90 days or less.