Real Estate Sales Dip Sharply In July

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The numbers are in for July and they aren’t pretty.  Many wondered if the First Time Homebuyer Tax Credit had an impact on the market and I can now say emphatically, yes!  Real Estate sales in July dropped 40% compared to July in 2009 for all residential properties and 26% for single family homes.  Quite a drop for mid-summer.  As you might recall the original deadline to close on tax credit eligible transactions was June 30th.  This deadline led to a pretty serious hangover in July.

How do we look going forward?  Good question.  From what I can see, we have stabilized for the moment and have drawn a new baseline of activity (not great but acceptable).  This will change when one of the following happens: interest rates change (once the signal is given that 4-5% interest rates are on the way out buyers will hurry to take advantage) and true, widespread economic recovery.  In my view the economy has been sideways for a long time.  Not a lot of hiring, spending or investing going on and not much will change in the Boulder area real estate market until we see real improvement in the economy.

For historical Boulder Real Estate Statistics check out my statistics tab.