Foreclosures appear to have tempered the prices of homes sold in February in the Denver area, experts said Tuesday.

The median price of a single-family home sold and closed in February was $235,000, compared with $236,000 in January and $238,500 in February 2006.

The average price of a single- family home sold was $292,143, compared with $297,368 in January and $305,017 a year earlier.

"I think the number of foreclosures is definitely starting to impact the prices of homes, especially in some specific neighborhoods," such as parts of Aurora, Montbello and Green Valley Ranch, said Gary Bauer, who authors a monthly report based on Metrolist data.

Coldwell Banker Colorado also released a report based on Metrolist, a Realtor-owned group that tracks transactions.

Bauer said more new-home builders seem to be going after first-time homebuyers, providing more competition for the lower-priced homes that are more likely to go into foreclosure.

Kirby Smith, a Metro Broker and owner of Cherry Tree Properties, agreed that foreclosures are driving down home prices.

He noted that the average asking price of a home for sale was $265,272 in February, compared with $276,746 a year earlier.

While it affects the short-term numbers, the drop in prices indicates that lenders are lowering prices of foreclosed homes for quick sales.

"I think the biggest thing with foreclosures is that a lot of banks are getting serious about getting rid of this stuff," Smith said.

"That is very good news for home buyers, sellers and investors," he said. "No home seller wants to be competing against overpriced foreclosures. I think it is good for everyone if the banks get rid of them quickly."