Under contracts drop by 30%, but homes prices up -“We stole buyers in October from November,”
| % Change vs | |||
| NOV 09 | Prior Month | Year Ago | |
| Single Family (Res + Cond) | |||
| Active | 18,061 | -4.67 | -17.00 |
| Under Contract | 3,444 | -29.86 | -5.31 |
| Sold | 3,599 | -9.07 | 23.25 |
| Avg DOM | 81 | -12.77 | -13.49 |
| Avg Sold Price | $238,852 | 0.02 | 5.27 |
| Residential | |||
| Active | 13,575 | -5.57 | -19.08 |
| Under Contract | 2,727 | -28.24 | -6.71 |
| Sold | 2,751 | -9.86 | 16.82 |
| Avg DOM | 79 | -14.13 | -15.05 |
| Avg Sold Price | $265,498 | 1.42 | 9.46 |
| Condominium | |||
| Active | 4,486 | -1.82 | -10.03 |
| Under Contract | 717 | -35.41 | 0.42 |
| Sold | 848 | -6.40 | 50.09 |
| Avg DOM | 88 | -10.20 | -9.28 |
| Avg Sold Price | $152,409 | -5.60 | -5.70 |
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The extension of the tax-credit for home buyers removed a sense of urgency for home buyers in the Denver area last month, resulting in a record drop in home sales from October.
Only 3,444 Denver-area homes were placed under contract last month, a 29.9 percent drop from the 4,910 homes placed under contract in October, shows a report released today by independent broker Gary Bauer.
That is the largest percentage drop in November from October since at least 1990, shows an analysis of historical data by InsideRealEstateNews.com. While under contract activity typically drops off for seasonal reasons in November from October, in most months it falls by 15 percent or less.
“We stole buyers in October from November,” as first-time home buyers rushed to try to close their homes before the end of last month, the previous deadline for the $8,000 tax credit for qualified first-time home buyers, said Tom Cryer, a broker with the Kentwood Co.
In early November, President Obama signed legislation continuing and expanding the credit to $6,500 for some current home owners .
“First-time home buyers were positively worried that the credit was gong to end, so they were rushing to do transactions in August, September and early October,” Cryer said. “Once they found they were going to have the tax credit extended for (about) six months, they backed off. I personally have had a number of my first-time home buyers say let’s keep looking until we find the perfect home, instead of settling for something less.”
More of this article at http://insiderealestatenews.com/2009/12/under-contracts-drop-by-30-but-homes-prices-up/
Filed under: News | Tagged: buyer, denver, estate, extension, first-time, gary bauer, home, metro, november, real, sales, tax
