Colorado Springs Home Sales Soar in November


Colorado Springs-Area Home Sales Soar in November;
Prices Up for the First Time in Two Years
BY: RICH LADEN --THE GAZETTE

Here’s a good indication of what the federal government’s $8,000 tax credit has meant for the Colorado Springs-area housing market.
Single-family home sales totaled 794 in November, soaring 59.1 percent when compared with the same month a year ago, according to a report Wednesday by the
Pikes Peak Association of Realtors.
It was the biggest percentage gain in monthly home sales during the last 15 years,
the period for which association records were available.
Another positive sign: the median price of homes sold in November increased 0.5 percent to $187,950 from the same month last year —
the first year-over-year gain in monthly prices since July 2007.
The figures reflect homes whose transactions were handled by association members;
most of the deals took place in El Paso and Teller counties.
Something to note, however: November’s sales and prices are being compared against last year’s numbers, when the area and the nation were in the throes of a deep housing slump.
Still, “these numbers are definitely moving in the right direction,” said Bill Hurt, president of ERA Shields Real Estate and the association’s current board chairman.
The downturn prompted the federal government to include an income tax credit of up to $8,000 in the stimulus package approved in February. First-time buyers and those who hadn’t owned a home in three years were eligible for the credit.
Along with falling prices and mortgage rates that dipped below 5 percent,
the credit helped jolt sales, Hurt said.
And after many first-time buyers purchased homes, it allowed existing owners to move up to larger homes — what Hurt called a “trickle-up effect.”
The $8,000 tax credit was scheduled to expire this week, but was extended and expanded by Congress.
First-time buyers now have until April 30 to sign a contract to buy a home and June 30 to close on it to qualify. The program also was expanded to make existing homeowners eligible for an up to $6,500 tax credit if they buy another home.

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