Denver and Dallas are still leading the nation in home prices

Home price statistics for Denver are beginning to sound like a broken record. Denver held its place as one of the top metro areas in the nation to enjoy improved home prices from July 2009 to August 2009. During August, home prices increased 1.0 percent, according to the S&P/Case-Shiller Home Price Index. For the past six months, Denver’s month-to-month change in home price values has increased.

Nationally, home prices are looking more promising as well. According to David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, “Broadly speaking, the rate of annual decline in home price values continues to improve. The two Composites and 19 of the 20 metro areas showed an improvement in the annual rates of return, as seen through a moderation in their annual declines” (www.standardandpoors.com).

Denver’s annual declines have decreased steadily over the past six months, falling only 1.9 percent since August 2008. This continues our hope that Denver’s housing market is recovering as it nears a positive change in its annual returns.

The chart below illustrates the improvement in home values that Denver has experienced since February 2009. Each month’s home values get closer and closer to a positive year-over-year change.

Yearly% change in home price values - Denver, CO

Source: S&P/Case-Shiller Home Price Indices. More information can be found at: www.StandardAndPoors.com

If you missed out on the $8K First-Time Buyer Tax Credit or didn't qualify, here's your second chance

The Economic Stimulus Package passed by Congress dedicated $6.6 billion dollars to the incentive for first-time homebuyers. First-time homebuyers who purchased a home before December 1, 2009 would receive a tax credit up to $8,000. Congress extended that deadline. Now buyers purchasing a home before June 30, 2010 also may qualify for the tax credit. The credit has also been expanded to repeat buyers purchasing a replacement home.
The National Association of Home Builders are hopeful that the extended and expanded tax credit will spur some housing activity. According to Joe Robson, NAHB chairman and a home builder from Tulsa, Oklahoma, “the tax credit has proven to be a powerful economic incentive. Today’s action by Congress will further stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices” (www.NAHB.org).
According to the IRS, the first-time homebuyer credit has provided tax benefits to 1.4 million families as of November 6, 2009 (www.irs.gov). NAHB estimates, “that the extended and expanded home buyer tax credit will create 211,000 jobs and generate 180,000 additional home sales in the coming year. It is also expected to generate $9.6 billion in wage income and $6.9 billion in federal, state and local taxes” (www.NAHB.org). The tax credit doesn’t apply to everyone, so buyers should consider the following requirements of the tax credit before making any purchasing decisions:

Things to consider – highlights for first-time buyers:
• $8,000 tax credit for first-time homebuyers does not have to be repaid.
• The tax credit is for 10 percent of the home’s purchase price up to $8,000.
• You do not qualify if you have owned a home within the last 36 months.
• The home you use the tax credit to purchase must be your primary residency for at least the next 36 months
• For purchases in 2009, the tax credit may be applied to your 2008 or 2009 taxes.
• For purchases in 2010, the tax credit may be applied to your 2009 or 2010 taxes.
• You must be under contract to purchase a home by April 30, 2010 and closed by June 30, 2010 to qualify for the tax credit.
• The credit only applies to single taxpayers with adjusted gross incomes at or below $125,000.
• The credit only applies to married couples filing jointly with a combined adjusted gross income of $225,000 or less.
Things to consider – highlights for repeat buyers:
• $6,500 tax credit for repeat homebuyers does not have to be repaid.
• The tax credit is for 10 percent of the home’s purchase price up to $6,500 (up to $3,250 for a married individual filing separately).
• You qualify if you have resided in your principal residence for five consecutive years out of the last eight.
• The home you use the tax credit to purchase must be your primary residency for at least the next 36 months.
• For purchases in 2009, the tax credit may be applied to your 2008 or 2009 taxes.
• For purchases in 2010, the tax credit may be applied to your 2009 or 2010 taxes.
• The credit only applies to single taxpayers with adjusted gross incomes at or below $125,000.
• The credit only applies to married couples filing jointly with a combined adjusted gross income of $225,000 or less.
• You must be under contract to purchase a home after November
6, 2009 and on or before April 30, 2010 and you must close on that purchase by June 30, 2010 to qualify for the tax credit.
• Purchases of homes that are priced above $800,000 are not eligible for the tax credit.


By the numbers

3.6% - The national decline in new home sales during September 2009, following five consecutive months of sales increases. - www.NAHB.org

7.5 - The national monthly supply of new homes available for sale in September 2009. September was the 29th consecutive month in which the inventory declined, reaching its lowest since November 1982. - www.NAHB.org

10.6 - The decline in new home sales in the West during September 2009. The Midwest gained 34 percent in new home sales during September. - www.NAHB.org

9.4% - The increase in existing-home sales, including single-family, townhomes, condominiums and co-ops in the nation from August 2009 to September 2009. This 5.57 million-units sale pace is 9.2 percent above the 5.10 million-unit pace in September 2008. - www.Realtor.org

15.0% - The decrease in the nation’s total housing inventory from September 2008 to September 2009. During September 2009, there were 3.63 million existing homes available for sale. This represents a 7.8-month supply at the current sales pace. - www.Realtor.org

$174,900 - The national median existing-home price for all housing types in September 2009, down 8.5 percent from September 2008. - www.Realtor.org

$174,900 - The national median existing single-family home price in September 2009, down from 8.1 percent from September 2008. - www.Realtor.org

9.4% - The increase in single-family home sales in the nation from August 2009 to September 2009. Sales rose to a seasonally-adjusted annual rate of 4.89 million. That’s 7.7 percent more than the 4.54 million-unit rate in September 2008. - www.Realtor.org

$175,100 - The national median existing condo price in September 2009, which was 11.7 percent less than it was in September 2008. - www.Realtor.org

21.2% - The national increase in existing condominium and co-op sales from September 2008 to September 2009. Sales in September 2009 were at a seasonally-adjusted annual rate of 680,000 units; 9.7 percent higher than the 620,000-unit sales pace in August 2009. - www.Realtor.org

2.9% - The increase in sales for single-family homes and condominiums in the Denver Metro Area from September 2009 to October 2009. In October, 3,958 single-family homes and condominiums sold, leaving 18,945 available for sale, which is a 4.8-month supply at the current sales pace. - www.MyMLS.com
3.1 - The decline in average days on market for single-family homes and condominiums in the Denver Metro Area from September 2009 to October 2009. The average days on market for October 2009 was 2.1 percent less than it was in October 2008. - www.MyMLS.com


Vital signs

Mortgage Rates
11/5/2009 - 4.98%
11/6/2008 - 6.20%
11/8/2007 - 6.24%

Sources: Denver Metrolist, Freddie Mac, Colorado Department of Labor and Employment. Based on Information from Metrolist, Inc. for the period 1-1-2008 through 9-30-2009. NOTE: This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Data maintained by Metrolist, Inc. may not reflect all real estate activity in the market."