High-end housing enters downward price trend

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So far the Pikes Peak region’s residential real estate prices are holding their own, but high-end neighborhoods have begun to reflect a broader downward trend.

Overall home prices decreased 8.44 percent during March compared to a year ago, according to First American CoreLogic’s latest Home Price Index report.

During February 2009, Colorado Springs registered a 7.71 percent decrease compared to a year ago.

Upscale neighborhoods in Broadmoor, Monument, Peregrine and Cedar Heights, however, saw sales stall more dramatically as the $417,000 cap on jumbo loans combined with buyer caution have put increased downward pressure on home sales.

Broadmoor Properties’ broker John Bartolin said so far this year 11 homes have sold for $1 million or more, city-wide. That’s represents a 50 percent decrease compared to 22 sold during the same period last year and 34 sold for the first six months of 2007. “We just listed several new million dollar homes,” he said. “It’s going to be a tougher market than last year.”

The good news may be that we’re not alone.

National prices fell 11.5 percent during March compared to a year ago, down slightly from an 11.7 annual percent decline in February.

The impact of home prices and economic distress was more visible in higher housing price areas. Data collected by CoreLogic showed that where the median value of all properties exceeded $1 million, mortgage delinquencies were rising at a faster pace than the overall national delinquency rate – but were still lower than the U.S. rate overall which stood at 4.59 percent for loans 60 days or more in arrears.

The latest HPI also showed two trends are emerging – price declines are slowing in the states that have had the highest declines over the past three years, however, declines are accelerating in states that have been experiencing only moderate decreases during that same period.

Thirty-three states have seen acceleration in the rate of price declines in the last three months, the report said.

The number of states exhibiting double-digit annual declines has doubled during the last year, increasing to 14 states in March 2009, up from seven states a year ago.