Home sales down 17.8 percent in March

Home prices and sales activity in the Denver area continue to lag last year’s dismal performance, according to a monthly report released Tuesday.

The March report by independent broker Gary Bauer shows that there were 4,826 homes placed under contract last month, a 17.8 percent drop from the 5,874 sales in March 2008. Under contract activity did increase 15.4 percent from the 4,183 in February, but sales typically increase from February to March for seasonal reasons.

In the first quarter, there were 12,840 homes placed under contract, a 17.4 percent drop from the 15,550 homes placed under contract during the first three months of 2008.

Meanwhile, the average sold price of all homes and condos in the metro was $232,395, a 6.6 percent increase from the $218,010 figure in February, but an 8.51 percent drop from the $254,011 average in March 2008, according to the Bauer report, which is based on Metrolist data. Metrolist tracks homes sold by Realtors.

The average price of a single-family home sold and closed last month was $251,583, compared with $236,920 in February and $274,693 in March 2008.

The median price – the middle point – of single-family homes sold last month was $203,950, down 9.32 percent from $224,900 a year earlier, but up 6.22 percent from February, when the median price was $192,000.

The prices of homes is being influenced by the number of distressed homes on the market. While foreclosure filings are down 20.5 percent in the first quarter of this year compared with the first quarter of 2008, there are still a large number of short sales on the market, in which the lender agrees to take less than the mortgage amount in a sale.

In addition, the lower prices from a year ago indicate that buyers are mostly interested in lower-priced homes. Many brokers say that while interest in lower-priced homes is brisk, the sales of homes priced at more than $500,000 remains sluggish. One reason: Jumbo loans – those for more than $417,000 – are still priced considerably higher than conventional loans, which are at or near record lows, hovering below 5 percent for the most-qualified buyers.

Another significant factor in Bauer’s data: There are 20,628 unsold homes on the market, a 19.2 percent drop from the unsold inventory of 25,516 unsold homes in March 2008. While that is a 2.8 percent increase from the 20,059 unsold homes on the market in February, more homes typically are put on the market in March, as the heavy selling season gets under way.

There were 3,206 home closings last month, a 13.6 percent drop from the 3,709 closings in March 2008, but a 29.1 percent increase from the 2,484 homes that closed and sold in February. Closings represent sales that sometimes took place months before, especially in these times of increased scrutiny by lenders where it often takes longer to close loans.