Denver, CO - 50% Drop in Metro Denver's Showings After Tax Credit Expires by Kevin Lundy of Focused Realty
While its certainly too early to speculate, many of the real esatate bears in the Metro Denver marketplace are having their way.
Initial statistics from Real Estate Resource Center, Inc show that showings are down over the prior weekend, that period leading up to the expiration of the tax credit, a whopping 50%. Being that it is springtime in the Rockies, showings in the metro-Denver area are historically steady and "typical". But as we all know, these times are anything but typical.
Prior to the tax-credit expiring, the same source stated that sales were breaking records, so being down from record-breaking performances is not necessarily a bad thing. Likewise, coming off of the high that goes along with the mad rush to save $6,500 or even $8,000 on taxes, is somewhat to be expected. On an optimistic note, RERC also reports that metro-Denver listings over the past weekend, vs the prior end of the week are only down 30%, its the actual showing of inventory which is down by the larger 50%. RERC, a Realtor's showing service provider/coordinator, reports having 56 new listings since May 1st, which they report as being good volume. So, its their perspective that there is still a steady stream of new inventory coming on the market, which indicates a renewing sense of homeowner/seller optimism in metro Denver.
Only time will tell to see how the market shakes out. Metro Denver never experienced the horrific price decreases seen throughout most other large metro areas throughout the country, as it also never experienced the exponential growth which ultimately brought the system down. Metro Denver has shown to be a more steady and slow growth market. What we'll be looking for over the next few weeks are additional signs to see if Spring is in bloom in metro Denver's real estate market, of if prices are reflected in a downward trend due to excessive new inventories with little transaction volume.
For those sitting on the fence whether to buy or sell real estate, its historically still a great investment, despite recent dips. Our metro Denver clients are advised to forego purchasing real estate for appreciation purposes; rather to build equity "over time" through conventional financing, take advantages of homeownership's tax benefits and to participate in and become part of a community.
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