Housing prices, closings fall

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Both the median price of homes in Colorado Springs and the number of closings fell year over year in May, according to data from the Colorado Association of Realtors.

The number of home closings fell 12.1 percent and the median home price fell 5.8 percent.

“The data’s clear that the numbers aren’t about to bounce back any time soon,” said Ryan McMaken, spokesman for the Colorado Division of Housing. “They’re just kind of flat. I guess we should be happy that it doesn’t look like they’re going to collapse any time soon either.”

McMaken compared the Colorado Springs market to the Denver metro market and found that while Colorado Springs saw deeper drops in home prices, it has also had more sales. Metro Denver’s median home price fell by just 3.4 percent, but its closings dropped year over year by 19.6 percent.

“That could make sense,” McMaken said. “It could be that more homes are selling in Colorado Springs because of the lower prices.”

The biggest drop in housing prices occurred in 2009, McMaken said. Prices in the Springs fell to about 74 percent of their peak while Denver prices fell to about 68 percent of their peak. They have rebounded slightly to a little more than 80 percent of their peak in Colorado Springs, McMaken said.

“What’s interesting now is that Colorado Springs doesn’t seem to be bouncing back as quickly as metro Denver,” McMaken said about median prices.

However, sales have been consistently stronger in the Pikes Peak region than they have been in metro Denver. The Colorado Springs area saw 13 consecutive months of positive year over year sales growth during the days of the tax credits. Denver only had four months of positive year over year sales figures.