Activity in the Denver real estate market continues to be the strongest under the $300,000 price range. Looking at activity compared to previous years, sales in 2009 out performed in many price ranges. This increase might be related to the the $8000 First Time Buyer Tax Credit.
Oddly enough total year to date sales were down from 2008 by 200 units! From a personal perspective I believe this was due to the lack of (good) inventory and the brisk competition in the market.
Many buyers who wanted to take advantage of the $8000 Tax Credit found they didn’t have the patience and/or nerves to continually be bidding and losing out on perspective homes. Buying real estate is strongly emotional for first time buyers so for many the Tax Credit caused undue stress. Hopefully with the extension it will ease the competition and bring some of those buyers back into the real estate market.
Total available resale inventory continues to decrease. That will begin to force prices up somewhat in the first quarter of 2010, especially with the available tax credit. Just one more reason why buyers should get into the market sooner than later.
Homeowners who are interested in selling and have a well-taken care of home, will find the days on market to be short.
Closings in the month of November totaled 679 more than the same month last year. This is a 20% increase.
Our market continues to be bifurcated, meaning the lower price range is selling and the upper price range isn’t doing as well. Looking at the graph for Percentage of Sold Residential Properties by Price Range for the month of November, solds are up in the higher price ranges, or at least better than last year. But they haven’t returned to the volume of 2006 and 2007.
Despite the never ending unstable economic news, the financial markets are improving slightly and the mortgage interest rates are still very low.
All in all the Denver real estate market is very inviting for both investors and individual home buyers.
Source: Statistics provided by MetroList
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
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