Drop in June housing prices smallest in nearly a year

Area home prices dipped less than one-half of 1 percent in June, the smallest monthly decline in nearly a year.

"There's nothing wrong with flat right now," Nancy Rusinak, of Rusinak Real Estate in Colorado Springs, said of local home prices. "That's good."

Prices, foreclosures and home construction are among the more closely watched economic indicators in Colorado Springs and other cities.

A nationwide housing slump triggered by a mortgage industry crisis and sluggish economy has slowed home sales and construction for the past year, sent prices downward and led to increased numbers of foreclosures in many cities. In the Colorado Springs area, home construction was down 43 percent in the first half of 2008 when compared with the same period last year, while foreclosures are on pace to surpass 5,000 for the year and set a record.

The median price for single-family homes that sold in June was $223,000, down 0.4 percent from $223,900 during the same month a year ago, according to figures released Tuesday by the Pikes Peak Association of Realtors.

It was the 11th straight monthly decline in median prices, but the best year-overyear change since prices rose 1.1 percent in July 2007.

The median is the midpoint of all sales prices; in June, half of the homes sold for less than $223,000, while the other half went for more. The figures compiled by the Realtors Association reflect home sales handled by their members, most of which took place in El Paso and Teller counties.

While the median price indicates what's happening across the Pikes Peak region, some neighborhoods are faring better than others on a year-over-year basis, said Jay Gupta, president of the Realtors Association board and managing broker of Gloriod & Associates in Colorado Springs.

Still, Joe Clement, owner of Re/Max Properties in the Springs, said he's worried home values in some areas will take a hit because hundreds of foreclosed homes are coming back on the market and being sold at a discount.

Average prices in June declined 7 percent to $256,829 from $276,148 during the same month last year, although median prices are considered more reliable because they're less likely to be skewed by the sale of very expensive or inexpensive properties. Year-to-date, average prices are down 7.1 percent to $242,717; a yearto-date median price was unavailable from the Realtors Association.
The supply of homes for sale in June declined 4 percent from the same month a year ago, a welcome sign for the market, Gupta said. The number of homes added to the existing supply in June fell 19.4 percent, and new listings are down nearly 13 percent during the first half of the year. Some real estate industry experts say the drop in new listings is a sign many sellers are waiting out the housing slump before putting their properties on the market.

Monthly home sales fell again last month. June sales totaled 867, down 22.5 percent from a year earlier and the fewest number of sales in any comparable month since 655 homes were sold in June 1997. June traditionally is one of the strongest months for home sales because families take time off from work and kids are out of school.

Of homes sold in June, about two-thirds were sold in 90 days or less, a good showing for the market, Gupta said.

For the first half of 2008, home sales totaled 4,296, down 18.7 percent from the same period last year.

Thousands of homes for sale mean sellers must have their homes in top condition, Rusinak said. At the same time, sellers must put a realistic price on their home that reflects today's slower market, she said. Sellers who follow those suggestions are likely to get at least 96 percent of their asking price, which is typical for almost any market, she said.

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