In Part I of my musings I talked about real estate as housing, but a discussion about real estate is not complete without some reference to home prices.
Recently IRES (our local area MLS) had a True-False question on the home screen. Bank-owned homes sell at market prices. True or False? Surprisingly over 60% of respondents (who are realtors by the way …) chose False. Serious hmmmm. Where is the logic in that? When a home sells for a price, that price reflects what a buyer in the market is willing to pay for that home. Isn’t the price a buyer is willing to pay in essence the “market price”? True! Bank-owned homes DO sell at market prices, and one could even say that they set the trend for prices in a given area. Bank-owned homes and the much dreaded “shadow inventory” will likely set market prices in virtually all areas of the country, and certainly in Boulder County, for at least the next 12-24 months. Sellers, are you listening??
The first time home buyer and move-up home buyer tax credits will expire shortly, and will most likely not be extended. The time to act is NOW, for both buyers and sellers. Buyers, get off your fences. You have between today and April 30th to get under contract on a home purchase. You must close before July 1st. Sellers, slash your prices or gird your loins for the upcoming storm. You have between now and April 30th to get your home under contract before one or all of the following things happen: tax credits expire, interest rates jack up, scores of bank-owned homes hit the market greatly affecting pricing (NOT to your benefit), mortgage markets tighten up again, and home prices in our neck of the woods take a much feared double dip. All of these things could happen, making it a “perfect storm” of trouble for home sellers, even in Boulder and Broomfield Counties. We are not immune here, despite what some would like to think.
Colorado Landmark, Realtors is committed to matching home buyers and sellers at market prices. To this end on April 10th and 11th we are participating in the Nationwide Open House Weekend and having a “Tax Break Home Sale”. We are working with many of our home sellers and have successfully reduced asking prices on some of our existing inventory by 3% or more! Just in time to get a home under contract before the April 30th tax credit deadline. These discounted homes will be held open Saturday and/or Sunday, April 10th and 11th.
Colorado Landmark, Realtors is at the cutting edge, setting the market in Boulder and Broomfield Counties, and beyond. Check out our Open House schedule at http://www.landmarkopenhouse.com/ on RELO Homesearch, at our company website Open House page, and in the Boulder Daily Camera real estate section both April 10th and 11th.
Hope to see you at one of our open homes! Please contact me if you have thoughts or questions about the tax incentives for 1st time and move up buyers. I welcome your feedback.
Director of Business Development and Relocation
Colorado Landmark, Realtors
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