More homes went under contract in October than at any time in the last 20 years, partially attributable to the $8,000 federal tax credit for first time home buyers due to expire at the end of November. The tax credit extension signed into law that adds move-up buyers ($6,500) and extends income limits to $125,000 for a single person and $225,000 for a married couple, that figure is due to go up between now and June 30, 2010, when it’s scheduled to end.  Buyers will need to have a home under contract by the end of April in order to take advantage of the tax break. For more information about the extension email me at Judith@Buyers-Advantage.net.   

That should be good news for both buyers and sellers.  Buyers in recent months have had to face a decrease in housing inventory as lower priced homes were snapped up by first time home buyers and investors looking to make a profit.  And we’re heading into the real estate slow season for the holidays which won’t begin to pick up till after the first of the year.  But then I expect a steep hike in buyers and lots of sellers putting their homes on the market after a long dry spell.  We’re headed for a balanced market with good possibilities for a growing sellers’ market in the spring and summer months. If you’re planning to buy a home in the near future don’t wait too long or you’ll find yourself on the short end of a rising sellers’ market with prices heading higher.

Denver’s increasingly upbeat economy will likely fuel job growth later in 2010 after a bumpy fall and winter.  Increasing job growth will free up funds for house purchases and remodels, which will further fuel a growing economy.

October data show that lower priced homes under $200,000 are still selling at a higher rate than homes over $200,000.  But lower priced homes are becoming scarce as the market begins to narrow at the lower end due to high demand.  Buyers are making higher offers, and some desirable homes in good neighborhoods are commanding multiple offers.  Absorption rate (the number of months it takes to sell out the current inventory) dropped in October from 5.15 months at the end of September to 4.8 months at the end of October.  When it reaches 4 months it’s a sellers’ market.  Average days on market for October dropped from 96 to 93.  In July, the month with the highest number of sales this year, average days on market was 100. 

Average prices declined 4% from September and 2% from October 2008, while inventory was also down, 18% from a year ago, but just 4.5% from September.  Overall the number of days on market declined 3% from September and 2% from October 2008.  The number of condos/townhomes under contract (pending sales) rose significantly over last year, indicating a lot of activity in the attached dwelling market, while inventory declined showing a tightening market in that sector.  For single family dwellings the number of homes under contract increased 9% from last October, but declined about 6% from September.

The Denver metro area's cost of living makes it an easy choice over higher cost areas like both coasts. According to BankRate it costs 39.5%% less to live in Denver than in the Los Angeles area; 30.0% less than in San Diego; and 23.3% less than Seattle. If you live in the east, it will cost 35.7% less than in Washington, D.C.; 27.1% less than in Boston; 115.1% less than in New York (Manhattan); and 20.2% less than in Philadelphia.

For buyers coming from the south and the midwest, metro Denver could cost more. It costs 6.9% more in Denver than in Atlanta; 12.4% more than in Houston; 8.9% more than in Dallas; 8.5% more than in Dayton, Ohio; 3.7% more than in Rochester, MN, and 8.6% more than in Boise. But living in Denver still costs 11.3% less than in Chicago, 14.9% percent less than in Portland, and a whopping 61.8% less than in St. Francisco. If you’re moving from Florida, it will cost 7% more than in Jacksonville, 3.7% more than in Orlando, but 8.9% less than in Miami.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, Bank Rate or CNN/Money.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references on the Buyers-Advantage.net website. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.