As most people know that the federal government 1st time home-buyer $8,000 tax credit that was offered to all that closed on a home prior to June 30,2010 caused a large increase in national real estate sales in June, but what many may not know is what did that tax credit do the the market in July?
Due to the large amount of buyers and sellers that closed on their homes in June there was a huge decrease in residential sales in July. I personally believe that the Tax Credit moved buyers in and out of the market faster then normally which in turn caused an unrealistic and unsustainable increase in the real estate market not just locally, but also nationally for the months of April, May, and June. This was a great thing at the time, but since it just accelerated buyers that would be buying any way it really affected the sales numbers for the following months of July, August, and potentially September.
According to the Northern Colorado Business Report the local Northern Colorado Real Estate Market had seen six consecutive months of increased sales each month until July. In Fort Collins there were 104 sales less in July compared to June, and 13.1% more homes sold in 2010 so far as 2009. In Loveland there were 169 homes sold in June and only 111 sold in July, but the overall home sales are still up 10.4% over the same period in 2009.
As a consumer you might ask what does this mean for the Northern Colorado Market? My personal opinion is that, yes, we saw a slow down in sales in July, but that is only because many of the people that would normally be selling in July sold or bought in June to take advantage of the Tax Credit. Even though the sales in July were slow we have seen an increase in market activity in August. Showings are up as well as many REALTORS are reporting that they are having more buyers enter the market to find homes. This is a good thing! It may take a few months for the sales to increase back, but nonetheless we are still seeing a fair amount of activity in the Northern Colorado Real Estate Market.