Deadline Day: A Survey of Data and Opinion on How the Tax Credit Has Impacted the Market
Denver-area homebuyers hurry as tax credit expires
Denver Business Journal
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Expiring federal homebuyer tax credits helped propel Denver-area home resales, of both houses and condos, in March from February and year over year, according to Metrolist Inc. data released Thursday.
Total resales rose 12.35 percent to 3,602 year over year, and jumped 47.87 percent from February sales.
Average sold price for both types of housing last month increased 7.10 percent to $248,905 from the same month of 2009 and was basically flat from February.
Resales, also called existing-home sales, are those of homes that have already been sold at least once before.
“First-time homebuyers will be out in force in the next 30 days, even though inventory will increase,” Gary Bauer, an independent Littleton residential real estate broker, said in a statement. “[Move-up] buyers will remain limited.”
Those credits include the $8,000 first-time homebuyer credit and the $6,500 credit for existing homeowners who want to buy a different home. The first-time homebuyer tax credit was extended last fall, at the same time the existing-homeowner credit was added, but real estate brokers don’t expect either credit to be extended this year.
“Hundreds of homebuyers in Colorado are still rushing to beat the April 30 deadline for the homebuyer tax credit,” David Simonson of Re/Max Professionals Inc. said in a report released Thursday. “If they’re successful, we could see some big sales numbers in next month’s report.”
Among the neighborhoods attracting the highest average selling prices for houses alone were Boulder ($611,479), metro Denver’s southeastern suburbs (476,312), Louisville (443,259) and southeastern Denver ($421,671).
Most existing houses sold — 32 percent — were in the $100,000-$200,000 price range, followed by the $200,000-$300,000 range with 31 percent of sales.
Other significant Denver-area statistics from Metrolist’s March report:
• Sales of houses rose 8.15 percent to 2,801 in March year over year, and were up 45.42 percent from February.
• Average selling price for houses increased 9.29 percent to $274,950 year over year, and rose 1.95 percent from February.
Median selling price went up 12.28 percent to $229,000 from March ’09, and 3.74 percent from February.
• Average days on the market for houses dropped nearly 19 percent to 86 year over year, and were down 6.5 percent from February.
• Condo sales rose 30 percent to 801 from the prior-year March, and jumped 53.15 percent from February.
• Average selling price for condos increased 4 percent to $157,830 year over year, but dipped 5 percent from February. Median selling price was up 2.4 percent to $131,579 from March of last year, and basically flat compared to February.
• Most condos sold — 47 percent — were in the $100,000-$200,000 price range.
• Days on market for condos also dropped — 16 percent to 89 year over year, and nearly 18 percent from February.
Metrolist, based in Greenwood Village, is metro Denver’s Multiple Listing Service, providing sales information to real estate professionals.
— Compiled by the DBJ’s Paula Moore:
Friday, April 30, 2010
New Home Sales Jump in March
Deadline Day: A Survey of Data and Opinion on How the Tax Credit Has Impacted the Market
New Home Sales Jump in March
Sales of new homes rose 27 percent in March compared to February, the U.S. Commerce Department announced Friday. It was the largest monthly increase since April 1963, when sales jumped 31.2 percent.
In addition, the National Association of REALTORS® reported last week that sales of previously owned homes rose 6.8 percent.
Economists attribute the figures to buyers taking advantage of the $8,000 tax credit scheduled to expire at the end of this month.
“In simple terms, housing is a bargain again, and buyers are responding,” Michael D. Larson, a real estate and interest rate analyst at Weiss Research, wrote in a research note. “That is unambiguously good news for the market going forward.”
Source: The New York Times, Christine Hauser (04/23/2010)
New Home Sales Jump in March
Sales of new homes rose 27 percent in March compared to February, the U.S. Commerce Department announced Friday. It was the largest monthly increase since April 1963, when sales jumped 31.2 percent.
In addition, the National Association of REALTORS® reported last week that sales of previously owned homes rose 6.8 percent.
Economists attribute the figures to buyers taking advantage of the $8,000 tax credit scheduled to expire at the end of this month.
“In simple terms, housing is a bargain again, and buyers are responding,” Michael D. Larson, a real estate and interest rate analyst at Weiss Research, wrote in a research note. “That is unambiguously good news for the market going forward.”
Source: The New York Times, Christine Hauser (04/23/2010)
Households Unfazed by Expiring Tax Credits
Deadline Day: A Survey of Data and Opinion on How the Tax Credit Has Impacted the Market
Households Unfazed by Expiring Tax Credits
The expiration of the home buyer tax credits won’t deter optimistic households who believe the market is improving, according to a survey released Wednesday by Prudential Real Estate and Relocation Services.
More than 90 percent of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65 percent say that end of tax credits won’t reduce their personal interest in buying a home.
Over the next five years, 79 percent expect real estate prices to increase, and 20 percent expect prices to rise substantially. Only 12 percent believe prices will decrease.
Among renters, 75 percent believe owning a home is a better long-term choice for them than renting.
The majority of consumers also believe that homeownership is a good investment, with 75 percent saying it is better than stocks or bonds, 72 percent preferring it to mutual funds, and 74 percent saying it surpasses savings accounts.
Source: Prudential Real Estate and Relocation Services, Inc. (04/28/2010)
Households Unfazed by Expiring Tax Credits
The expiration of the home buyer tax credits won’t deter optimistic households who believe the market is improving, according to a survey released Wednesday by Prudential Real Estate and Relocation Services.
More than 90 percent of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65 percent say that end of tax credits won’t reduce their personal interest in buying a home.
Over the next five years, 79 percent expect real estate prices to increase, and 20 percent expect prices to rise substantially. Only 12 percent believe prices will decrease.
Among renters, 75 percent believe owning a home is a better long-term choice for them than renting.
The majority of consumers also believe that homeownership is a good investment, with 75 percent saying it is better than stocks or bonds, 72 percent preferring it to mutual funds, and 74 percent saying it surpasses savings accounts.
Source: Prudential Real Estate and Relocation Services, Inc. (04/28/2010)
Deadline Day Review of Tax Credit Effect on Markets
Deadline Day: A Survey of Data and Opinion on How the Tax Credit Has Impacted the Market
Buyers Rush to Meet Tax-Credit Deadline
As the federal tax credits come to an end, home buyers everywhere are hurrying to get in under the wire.
But in California the rush has turned into something of a stampede as some would-be buyers try to qualify for both the federal credit and a $10,000 state credit that kicks in Saturday.
As one home shopper tells the Los Angeles Times, "I am looking at properties almost constantly, and it is just kind of a feeding frenzy right now.”
"The stimulus has worked," says Rick Hoffman, president of Coldwell Banker Residential Brokerage in San Diego and Temecula Valley. "Buyers are confident that we have seen the bottom of the real estate market and that we are on the way back up."
Source: Los Angeles Times, Alejandro Lazo (04/30/2010)
Buyers Rush to Meet Tax-Credit Deadline
As the federal tax credits come to an end, home buyers everywhere are hurrying to get in under the wire.
But in California the rush has turned into something of a stampede as some would-be buyers try to qualify for both the federal credit and a $10,000 state credit that kicks in Saturday.
As one home shopper tells the Los Angeles Times, "I am looking at properties almost constantly, and it is just kind of a feeding frenzy right now.”
"The stimulus has worked," says Rick Hoffman, president of Coldwell Banker Residential Brokerage in San Diego and Temecula Valley. "Buyers are confident that we have seen the bottom of the real estate market and that we are on the way back up."
Source: Los Angeles Times, Alejandro Lazo (04/30/2010)
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