Other luxury real estate markets also saw significant drops from last year, according to the report. Aspen's transaction volume was down 45 percent, to $1.4 billion. The Breckenridge area saw a 35 percent decline in transaction volume, to $1 billion; and Steamboat Springs was down 54 percent, to $725 million. Vail's volume was off 25 percent, to $2.2 billion.

Colorado is just a few of the states that the crisis has impacted on a minor degree. Some cities have successfully resisted the effects of widespread unemployment, tight credit markets and rising foreclosures.

Denver investment property and real estate was able to defy national property busts a few years back. Thanks to the financial and manufacturing firms that have anchored their operations in the city. However, the previous year sidetracked many companies that resulted to a slowdown in the city’s economy. Foreclosures spiked as borrowers couldn’t keep up with their payments. Home sales are still at a snail’s pace. RealtyOutlook.com predicts a 12.5 percent fall in home values this year.

Aurora cannot sustain its surprising run of home sales when foreclosures hampered its property sector’s growth. Even the local officials obtained the needed federal funding just to keep the foreclosed homes. Homeowners won’t be recovering from their delinquencies yet so more foreclosures are on the way. Home prices are expected to subside further by 11.5 percent.

The same is true for Colorado Springs and Fort Collins. The former has its home buying retarded by the crisis despite new job openings in call centers and insurance firms. Fort Collins on the other hand, experienced a growth in migrants during the peak of the real estate construction. The services sector had a major impact in the incomes of its residents. But mortgages are now a headache since almost all lenders require strict qualifications. Sales will be slower for these two cities this time as prices go down by a modest 7 percent for each area.

Some Colorado areas are well protected from the downturn’s effects however. Grand Junction’s energy mining explorations, tourism sites and healthcare industry have brought growth to this city. Buyers flock to the area to purchase homes while securing employment from gas companies. In fact, growth is projected at 3.1 percent and home values will resist national downward trends.

Finally, Boulder prides itself for having the University of Colorado, Naropa University and other private academies. Just like most college towns and cities, the influx of students provides growth in rents and some housing purchases. Also, the presence of established companies such as technology, aviation and manufacturing firms provide employment to thousands of residents. We expect home prices to only fall by 5.5 percent.