THANK YOU, TAX CREDIT…
The number of sales were up in the first 6 months of this year verses the same period for the last 2 years. The increase is probably due in part to the recently expired tax credits. One indication that the tax credits are responsible is that the mix of homes sold has increased in the under $500,000 price range while it has declined in the market over this mark.
The number of homes sold over $500,000 continues the decline we have seen for the last 4 years. Current interest rates in the mid 4% range may start to turn this segment around. For someone borrowing $700,000, a 2% decrease in interest rate lowers the monthly payment about $900 per month. $900/month would be a welcome addition to any family’s budget and when combined with the high inventories, may spur some move up buyers into action. No doubt a $324,000 interest savings over the life of a 30 year loan is a greater incentive than a $6,500 tax credit.
Conditions for buying a home in Denver have not been better in many years. If you know someone who would like to buy or sell in the area, we would be happy to meet with them to discuss their unique situation and how this market might benefit them. Click on the links below to access the reports.
