There is good news and bad news for the Denver real estate market this summer. We’ll start with the bad news first. Denver home sales stalled following the expiration of the homebuyer tax credits at the end of April, resulting in a 31 percent decrease in properties under contract for sale in June 2010 from June 2009. This was a completely expected hangover from the intense sales activity leading up to the April 30th expiration of the homebuyer tax credits.
The good news? According to the recently-released S&P/Case-Shiller Home Prices Indices and recent data from Metrolist, Denver home prices increased year-over-year for the sixth consecutive month in a row. Metrolist data reveals that despite the drop in sales, Denver’s median home price increased to $244,000 in June, a 2.7 percent increase from June 2009. This is also an increase from May’s median price of $230,000.
There are so many reasons to purchase a Denver home right now, the main one being that interest rates hit a 50-year low last week – landing between 4 and 4.6 percent depending on the loan type. These once-in-a-lifetime low interest rates give Denver homebuyers an opportunity to purchase their dream home at a higher price point than they would have been able to purchase only a few months ago. There is also a great selection of Denver homes for sale, as the inventory of homes for sale increased slightly in June.
While the tax credit party has definitely ended for the Denver real estate market, we expect a continued steady recovery fueled by low interest rates. For more information on the state of the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.
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