Housing prices dipping

Sharon Dunn, (Bio) sdunn@greeleytribune.com
February 27, 2008

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Weld County's high foreclosure numbers are now affecting housing prices.

Prices in Weld County have depreciated almost 5 percent in the past year, putting the county near the bottom in national rankings the Office of Federal Housing Enterprise Oversight released Tuesday.

Housing prices decreased 4.8 percent for the year ending Dec. 31, 2007; fourth quarter prices dropped 1 percent from the fourth quarter of 2006. In the past five years, however, housing prices in Greeley's metropolitan statistical area, which includes all of Weld County, have grown 2.2 percent, according to the report. The numbers put the Greeley metro area at No. 254 of 291 statistical areas ranked.

Matt Revitte, who brokers foreclosed properties through Pro Realty, 1110 38th Ave., in Greeley, said he isn't surprised.

"As more and more foreclosures get thrown into the pool of existing housing, it will dilute the market value," Revitte said. "It's probably the natural order of the market trying to reach an equilibrium."

Weld County topped out at 2,877 foreclosures last year after reaching record highs for the previous five years. And while it's helped reduce housing prices, it also has become a buyer's market, notes Chalice Springfield, chief executive officer of Sears Real Estate, 2021 Clubhouse Drive, Greeley.

"If housing prices have decreased, when you're buying, guess who gets the benefit?" Springfield said. If, for example, someone wanted to buy up but had to take a $30,000 loss on the sale, you also may be buying a foreclosed house from a bank that's taken a $60,000 hit, Springfield said.

"You might be able to make it up on the back end," Springfield said.

In comparison to Weld, the Fort Collins-Loveland metro area came in at No. 145 in the nation for the year with 1.8 percent growth in housing prices, 1.16 percent in the fourth quarter and 13 percent growth in prices over the last five years.

The Denver-Aurora area ranked No. 198 in the nation with housing prices dropping .49 percent for the year, growing .2 percent in the quarter and 10 percent in the past five years.

Only the Grand Junction area ranked on the nation's hot spots, coming in at No. 3 with housing prices appreciating 12 percent for the year, .85 percent in the quarter and 66 percent in the past five years.