The Denver housing market is clawing its way out of the doldrums.
The number of homes put under contract in February increased 9.2 percent to 4,183, compared with 3,831 the previous month, according to data released Friday. But it’s still down 18.4 percent from the same period last year.
The median price for a single-family home last month was up 5.8 percent to $192,000 compared with $181,500 in January. That’s down 13.3 percent from the same month last year, when it was $221,486.
The median price for a condo rose 4 percent from January to $117,725 in February, though down nearly 12 percent from the prior year.
“It just kind of shows that Colorado home prices have moved closer to stabilization,” said Jeff Thredgold, an economist with Vectra Bank Colorado. “The adjustment process in Colorado is much less painful than the adjustment process in the Southwest, where the market is still terrible.”
The month-to-month improvement points toward rising consumer confidence, said David Simonson of Re/Max Professionals.
“It’s going to take quite some time before we see numbers equal to a year ago,” he said.
Another positive: 53 percent of the homes sold last month were priced under $200,000, said Gary Bauer, an independent real estate consultant.
“That reinforces the affordability of Denver, and it helps us continue to be countercyclical to the rest of the markets,” Bauer said.
The market won’t hit bottom for another five months or so, Bauer said, when the new housing programs are implemented and interest rates stabilize.
“The biggest issue is that it’s going to take a long time to get approved for a loan nowadays,” he said.
The number of homes on the market rose 1.6 percent to 20,059 compared with January, but is down 19.9 percent from the same period last year.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
