photo credit: ifmuth

Here in Denver, home sales started out robust, but seem to be dwindling as the year progresses. The federal tax credit was a big incentive for first time home buyers to get into the game, however, now that its expired, we see Denver home sales are slow in August. The tax credit created a frenzy of home purchasing, but now that its gone, people are being deliberate and taking their time shopping for homes.

Denver saw 3,079 home sales closes in the metro area in August, which is down 5.5 percent from July. This data came from home sales numbers released last Thursday. The home sales numbers are well behind the previous months. Many say this is to be expected due to the expiration of the tax credit, we need to let people and the market adjust.

The numbers are sharply down from the same time last year. Compared to August of 2009 sales are down 24.4 percent and actual closings are off 21.2 percent. This, of course, contributed to an excess inventory of homes available for sale, a 16.8 percent rise in fact. We can see that the home buyer tax credit pushed the demand, but the market cannot sustain its self depending on such programs, because like most things, they dont last.

Read the full article from Denver Post

Posted in Denver Colorado Real Estate, Traditional Marketing, Real Estate Investing, Real Estate Market Conditions, Real Estate Industry Trends

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