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Federal Tax Credit Deadline Supercharged Denver Home Sales

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By : John Cutts    99 or more times read
The federal tax credit deadline supercharged Denver home sales in May as buyers rushed to close their home purchases before the June 30 deadline of getting title to the purchased properties. The tax credit scheme ended on April 30, but the deadline for closing the sales was set on June 30. The closing deadline could be extended if proponents get their measure approved by Congress.

A total of 4,365 pre-owned Denver homes and condos were sold in May, an increase of over 20 percent from total sales in May 2009. Pending sales, however, dropped by about 27 percent year-over-year to 3,883 units, due in part to the tax credit expiration.

The federal tax credit deadline also revved up the speed of house sales. Homes and condo units stayed on listings for only about 76 days in May, a sharp improvement of 28 percent from May last year and 5 percent from the previous month.

A number of those who planned to buy foreclosed homes for sale in May could have deferred their plans as Denver home auctions slowed. Only 209 Denver homes were posted for foreclosure sales, down by more than 19 percent from the preceding month. Foreclosure filings also fell to 375, down by 10.5 percent from the April total.

Home auctions in Colorado also slowed in May. In the 12 largest counties in Colorado, which are Denver, Adams, Boulder, Arapahoe, Douglas, El Paso, Broomfield, Mesa, Larimer, Jefferson, Weld and Pueblo, foreclosure filings declined by almost 18 percent year-over-year and by more than 16 percent from the total in May 2008. These counties posted a total of 1,459 foreclosure sales, down by nearly 20 percent from April.

Another foreclosure report also highlighted the slowdown in foreclosures in Colorado, as the state got out of the top-ten listing and was replaced by Maryland.

With the improvement of the Denver economy, sellers and real estate professionals hope that the housing market continues to improve even without the federal tax credit scheme.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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