Region's home sales rose in September
The Pikes Peak region's housing market got some much-needed good news last month.
Single-family home sales in September rose 5.6 percent when compared with the same month last year, according to figures released Thursday by the Pikes Peak Association of Realtors. It was the first year-over-year gain in home sales since May 2006; the Colorado Springs area, like much of the rest of the nation, has been in the throes of a major housing downturn that has led to falling prices, record numbers of foreclosures and a decline in home construction.
Also, sales of existing homes in September, which accounted for about nine of every 10 homes sold last month, jumped 9.6 percent compared with September 2007, according to the Realtors Association report. For the first nine months of the year, however, combined sales of new and existing homes declined 15.9 percent when compared with the same period last year.
The supply of homes for sale in September dropped 10.9 percent compared with a year ago, and the number of homes added to the inventory of listings last month fell 6.4 percent. Real estate experts say thinning the ranks of homes for sale will help stabilize and improve the market.
The median price of homes sold in September, however, fell to $200,000, a 4.8 percent drop when compared with the same month last year. It was the 14th consecutive month that median prices have fallen. The median price is the mid-point of all homes sales for the month; the figure reflects homes whose sales were handled by Realtors Association members, and most transactions took place in El Paso and Teller counties.
September's increase in home sales and reduced supply were "highly encouraging," said Jay Gupta, past president of the Realtors Association board and managing broker of Gloriod & Associates, a Springs residential brokerage.
It's possible some buyers were attracted by lower interest rates, Gupta said. On Thursday, 30-year, fixed-rate mortgages averaged 5.94 percent nationwide, according to mortgage giant Freddie Mac.
"People who have been just waiting and wanting to make a decision and buy, they've finally started saying, ‘It just looks good, and maybe we just have to move,'" he said.
Also, Gupta said, some people have recognized prices are competitive and there's a large supply of quality homes. Some buyers, he added, might have gained confidence because of the federal government's attempts to address housing woes.
Even as home prices dropped in September, they continue to vary widely among neighborhoods, and some areas have seen higher appreciation than others. While prices have fallen across the area, they haven't declined nearly as far as in some cities that had seen unrealistic price increases during the first part of the decade.
Nearly 90 percent of homes sold last month in El Paso County were in the $400,000-and-under price range, according to the Realtors Association report. Some areas remain popular with buyers - such as the Springs' southwest side, neighborhoods along the Powers Boulevard corridor or in the Fountain Valley south of the Springs - because of an ample supply, competitive prices or amenities such as nearby shopping, Gupta said.
Still, given the volatility of the nation's economy and global financial markets, Gupta said, nobody can predict whether September's upturn will continue.
By Rich Laden
October 9, 2008
GAZETTE COLUMN
Stuart Scott is President of Stuart Scott Ltd, a Colorado Springs residential real estate company. He has been a licensed Colorado Realtor for 33 years.
Sheila Morris
Stuart Scott Ltd.
726 South Tejon Street
Colorado Springs, CO 80903
Office: 719.578.8801 x116
Fax: 719.578.8808
Cell: 719.290.0770
www.SheilaMorrisHomes.com
