Sales and prices of existing homes in the Denver area continued to slide in February, largely a result of inclement weather and a high foreclosure rate.
The number of homes sold last month dropped to 3,090, compared with 3,540 in January, according to statistics released Tuesday by independent real estate analyst Gary Bauer.
The median price for a single-family home dropped to $235,000, from $236,000 in January. For condos, the median price dropped to $144,950, compared with $154,900 in the previous month.
“Prices are down in those areas where the homes historically are not the highest prices, such as Aurora and Montbello,” Bauer said. “Foreclosures are still having their impact. When you’re looking at a foreclosure, you may or may not have to put a fair amount of money into it, so you bid accordingly.”
Competition from new homes also is negatively affecting the existing- home market. Homebuilders who traditionally provided homes in a variety of price ranges are now focusing on first-time buyers, Bauer said.
“They’re offering some very attractive programs that give a good amount of upgrades,” he said. “Until now, this hasn’t been a factor in existing-home sales.”
Another factor contributing to the declining market is the number of people taking the equity out of their homes to pay for vacations or expensive toys, said Larry McGee of The Berkshire Group.
“If you use your house like an ATM it may be hard to sell it,” McGee said. “Unless prices go up, you’re in trouble. It’s irresponsibility of the public.”
Bauer and McGee agree that cold, snowy weather in the first part of February contributed to the drop in sales.
“When you’ve got 60 days of snow on the ground and repetitive snowstorms, it dampens people’s desire to go look at houses,” McGee said.
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
