Condo and townhome prices in the Pikes Peak region have fallen about 19 percent from their peak and are close to prices of late 2005 and early 2006, according to the Colorado Division of Housing.
Division spokesman Ryan McMaken analyzed CoreLogic and Multiple Listing Service data to determine that condo prices have been consistently falling since June of 2009, when the single family market began to even out.
Single family home prices have fallen less than 1 percent since June of 2009 while condo prices have dropped more than 6 percent, McMaken said.
While condo and townhome prices are down 19 percent in both Denver metro and Colorado Springs metro areas, they are down 47 percent statewide, which McMaked attributes to big drops in the prices of expensive mountain condos.
The deeper declines in condo prices are not surprising, McMaken said. They started to lose value almost a whole year before the single family market took a hit and are typically viewed by lenders as much riskier housing products than single-family homes.
“Single family are what people see themselves in when they think of home ownership,” McMaken said.
And that’s why condos will continue to drop. As single-family homes become more affordable, people are buying them instead of attached homes.
“People are thinking, why would I buy a condo when I can afford a house?” McMaken said.
Condo prices will probably continue to fall as the lending market for them becomes even tighter. (See this story about expiring FHA certifications for condo communities)