The Denver Business Journal reports from Colorado. "Homes sales in the metro area fell in 2006, as did the total volume of residential transactions. Perhaps a more telling figure is the percentage of the original listing price that single-family detached homes sold for in December: just 70 percent. That's a significant drop from November's 93 percent."

"Condo sales prices stayed steady at 94 percent, a 5 percent increase over November. 'It seems that condo owners are more realistic with their pricing,' said Lance Chayet, principal of Hanover Realty in Lakewood."

"He believes many sellers of single-family detached homes listed their homes at inflated prices earlier in the year, and by year-end, had to accept the slumping market. 'They put their homes on the market in April at a [high] price and by October, they were getting fearful that the market was cratering,' Chayet said."

"By December, some sellers were so desperate, they took whatever they could get to make a quick sale. 'Sellers are finally coming to grips with the reality of the market. The market is adjusting and that's positive,' Chayet said. 'In June, July and August, there were a lot of ostriches out there."

The Rocky Mountain News. "Home sales dropped by $424 million in 2006 from 2005, probably the first time the Denver-area market has ever seen a year-over-year drop in total dollar volume."

"'This is the first time we've seen a drop since we began tracking the market in 1985, and I think it is very likely it is the only time it has ever happened,' said independent broker Gary Bauer."

"The record 19,425 home foreclosures were the chief culprit for keeping a lid on the average price of homes in 2006, Bauer said. 'I think foreclosures impacted the market more than we expected,' he said."

"'Also, I think early in the year, people were a little too optimistic about what price they could get for their homes, and later in the year, sellers became more educated about what they could really sell them for,' Bauer said."

The Denver Post. "'There is virtually no community not impacted in some manner by foreclosure,' said (broker) Rob Horton. Even in neighborhoods where foreclosures were few, home-appreciation rates were under pressure."

"The median single-family home price for 2006 was $249,900, slightly higher than 2005's median price of $247,000. Median condo and townhome values fell to $157,000 in 2006, down from $160,000 in 2005. Those numbers may be artificially inflated by pricing concessions reached by buyers and sellers, Horton said."

"Horton focuses on the southeast metro area. He said his business was off nearly 38 percent in 2006, and he isn't alone. 'It was a challenging year for nearly every Realtor,' Horton said."

"Four people accused of participating in a mortgage fraud conspiracy that stole millions of dollars and left a gated community in Arapahoe County ravaged by foreclosures pleaded guilty in federal court Friday."

"The participants included Taiwan Lee, who managed to get 100 percent loans for five houses sold at inflated prices - including two he bought while living behind bars in the state prison system."

"Until the foreclosures began, he owned five houses in the affluent The Villas at Cherry Creek, thanks to distant lenders who put up 100 percent of the inflated sale price on every house."

"On Friday, U.S. District Judge Edward Nottingham hesitated to accept Lee's guilty plea after the 25-year-old defendant said he really didn't understand what he was doing when he signed the loan documents. 'All I know is I signed my name,' Lee said. 'I thought it was legit. I don't know much about real estate.'"

"On parole and unemployed when he started buying houses, Lee maintained that he did not read or comprehend the mortgage loan documents. He also denied knowing that more than $20,000 placed in a bank account for him came from the excess loan proceeds of a criminal conspiracy. 'It sounds like to me you don't think you did anything wrong,' Nottingham said. 'I'm guilty,' Lee said."

"State Senator Chris Romer has been waiting two years for the mortgage industry to address what he calls the 'insanity' of Colorado's foreclosure crisis. Now, it's his turn."

"In the coming weeks, Romer and other members of the General Assembly seem likely to do to the home-loan business what the home-loan business has not done to itself: clamp down on mortgage brokers. The most telling thing Romer heard in last week's roundtable session between legislators and lenders was this: 'Third-party mortgage brokers have no fiduciary responsibility.'"

"Those fancy words mean the guy or gal arranging your loan doesn't have to make sure you can afford the home payments you're about to incur. He or she doesn't have to make sure you know what's in the fine print. With unlicensed third-party mortgage brokers setting up 70 percent of new home loans, said Romer, there is 'a license for abuse.'"

From Denver Yourhub. "Everyone has seen the headlines, 'Foreclosures Up, Home Sales Down.' Homes sold by realtors are down from the previous year. This fact is facing many home owners who have had their houses on the market but still have not sold."

"One homeowner, Kim Hiebert, had her home on the market for over six months with a commercial real estate agent and did not sell. Having to refinance her home in 2006 to use the equity to attend graduate school has left the amount she owes on her home exactly where homes are selling for in her area. With added closing costs, and real estate commissions, she was not informed of at the refinance, has priced her out of the market."

"In order to sell her home, Hiebert is now trying a different approach, selling it herself. 'I cannot afford to pay a selling agent commission as well as a buyer agent commission. I would probably have to bring money to closing that I do not have,' Hiebert says."

"She remains positive, 'I'll sell it at absolutely the lowest I can. I don't mind not making a dime at closing, If I can sell it lower, I will. I just need to move closer to work, the snow is killing me,' Hiebert jokes."