DENVER – Metro area home-sellers bucked a national trend for the month of June.
While the National Association of Realtors says single family home sales across the nation dipped 0.8 percent due to cancelled contracts and tight credit, Denver home sales shot up 20 percent from May to June, according to the latest statistics from the Colorado Association of Realtors.
The Realtors Association reported 3,370 single family units sold in June, which is up from 2,797 sold in May.
“All real estate is local,” Colorado Association of Realtors Metro District Vice President Sandy Trujillo said.
Trujillo says Denver’s real-estate market is much better than the rest of the nation. She also said lenders and realtors noticed a very nice spring.
Still, she has seen a slow-down of houses under contract in the month of June, which may lower home sales statistics in July.
“I think that’s still a little bit seasonal,” she said of June’s numbers. “The buyers are very skeptical. They still want that deal out there.”
Home prices in the metro area remained about 8 percent lower for the first quarter of 2011 when compared to 2010′s numbers.
The median price was $223,031 in the first quarter of 2011.
Still, realtors are optimistic about the rest of the year.
“If you look at it on a year over year basis,” Aurora Association of Realtors President Terry Wenze, said, “We are probably going to come in on a full year basis to what 2010 looked like. If we can close the same number of houses without the tax credit, that’s improvement.”
Home sales spiked last spring with the $8,000 new homebuyer tax credit offered by the federal government, and inventory is much less than last year.
“It’s a very competitive market,” Colorado Mortgage Lenders Association Vice Chairman Michael Rosser said.
Rosser says people are beginning to feel a bit more confident about lending standards, but still have to overcome hurdles about jumping back into the market.
“It’s much like an accident, where you know, you have to triage, stop the bleeding, and get the people to the emergency room, and get them stabilized. We’re in the ER now and we’re getting stabilized,” he said.
Rosser cautioned about the unpredictability of the market with talks about the debt ceiling in Washington.
If default happens, “The power goes off in the ER,” he said.
Rosser also says buyers still need education about the different loan standards offered.
Down payments range anywhere from zero percent for a VA loan, to 3 percent on an FHA loan, and 5 percent down on a privately insured mortgage, he says.
5:06 PM, Jul 23, 2011 Written by Matt Flener
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