John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... There were 5,248 percent homes placed under contract in August in the Denver area, a 6.1 percent drop from the 5,590 homes placed under contract in August 2008, according to a report released today.
The report by independent broker Gary Bauer, who used Metrolist data, showed that the number of homes placed under contract in August dropped by 0.7 percent from July, when there were 5,286 homes placed under contract.
“I am very happy about August,” Bauer said. “It indicates the market is still out there. We’ve got buyer demand in different price categories. For anything under $250,00, there is not that much inventory out there. We have less than a month’s supply of inventory.
“When the year started, 37 percent of the homes sold were priced less than $200,000,” Bauer said. Now, that market accounts for 26 percent of the market, he said
“What that tells me, is that at the beginning of the year, when we were trying to start all over again, the only homes that were selling were distressed properties,” Bauer said. “Now, other types of properties are also selling. I need to find another word, but we are now getting back to a normal market.”
Bauer noted it is first-time buyers who are driving the market. Part of that is because of the federal tax credit for qualified first-time buyers of up to $8,000. The tax credit, however, is poised to end at the end of November.
“We have approximately three months to take advantage of the credit, as the bill currently stands,” Bauer said.
If the first-time home buyer tax credit goes away, “it is going to be like the cash-for-clunkers,” auto program, Bauer said. “For a short period of time, until the realization sinks in that housing is an essential part of many people’s lives, the housing market will be impacted.”
In the first eight months of the year, the number of homes sold dropped by 13.9 percent to 39,564 homes placed under contract, compared with 45,951 in the first eight months of last year.
The number of homes closed, meanwhile, dropped by 12 percent from July and 14 percent in August 2009. A total of 4,440 homes closed in July and 4,542 in August 2008. Home closings are down 16.4 percent to 27,708 year-to-date, compared with 33,136 in the first eight months of 2008.
The price of a single-family home sold in August, fell to $251,008, about $10,000 lower than the $261,107 in August 2008, and about $1,000 lower than the $252,7272 in July.
The median, or middle, price of a single-family homes increased to $227,00 from $225,000 in August 2008, but is down from $229,900 in July 2008.
The average price of a condo sold fell to $167,090 in August from $173,823 a year earlier, but up from July, when it was $165,530. The median price of a condo rose to $144,500, compared with $140,000 a year earlier, but is down from $145,400 in July.
“The Denver market continues to remain steady and leads the majority of the country in continued economic growth and recovery,” said David Simonson, of RE/MAX Professionals.
“The number of homes sold per month has increased by almost 60% since January and the average sold price has increased by more than 17% during that same time frame,” he added.
He agreed with Bauer, and other brokers, that lower- priced homes are still a hot commodity as first time home buyers are trying to beat the deadline to take advantage of the $8,000 tax credit. Simonson noted that some in Congress have talked about extending the deadline.
graphs would be a big improvement
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