15 months of falling home prices
Home prices tumbled last month to their lowest level in more than 31/2 years across Colorado Springs and the Pikes Peak region, another dose of bad news for the local housing market.
The median price for single-family homes in October dropped 7.8 percent to $189,000 when compared with the median price of $205,000 in the same month last year, according to figures released Friday by the Pikes Peak Association of Realtors. It was the lowest monthly median price reported by the association since $188,000 in February 2005, and was the 15th straight month prices have fallen.
The median is the midpoint of sale prices, with half of the homes sold in October going for less than $189,000 and the other half selling for more.
Real estate experts consider the median a better barometer of the market than the average price because the average can be skewed by a few very high or low sale prices.
However, prices vary from neighborhood to neighborhood.
Home sales also fell; they totaled 649 in October, down 10.2 percent from 723 in the same month of 2007, the association reported. Year to date, sales total 7,345, a 15.4 percent decline over the same 10-month period last year.
The supply of homes on the market, however, continued to shrink.
October's listings fell 9.7 percent to 5,841 and the number of homes that went on the market for the first time dropped 14 percent last month to 1,302. Year to date, new listings are down 14 percent.
A housing recovery depends on a shrinking supply, which, along with increased demand, would boost prices, experts have said. Price, sales and supply figures compiled by the Realtors Association represent home sales handled by their members in October, and most of the sales took place in El Paso and Teller counties.
Even as home prices have dropped, some veteran real estate agents say they're seeing signs the market might have reached bottom.
Frank Fanelli of The Platinum Group Realtors in Colorado Springs said Friday that some of his clients, both traditional buyers and investors, are becoming convinced prices won't fall much further, and they're eager to jump into the market.
A four-unit building Fanelli's been marketing recently received three offers from investors after the property had been for sale for 14 months, he said.
"Most people know that a bad market is only around for a couple of years, and it's been that way for a couple of years," Fanelli said. "People think we're at the end of the bad period, and are comfortable to pull the trigger now."
