Denver's housing market was recently dominated by the First-Time and Repeat Homebuyers over the recent months who took advantage of the Federal Tax Credit that expired April 31st of this year. This is evident from the Denver housing market's March statistics, as the First-Timers and Repeat homebuyers helped boost Denver-area home sales by nearly 50 percent from February - March, and by 12.4 percent from March 09 to March 2010. A whopping 70 percent of Denver homes sold in March was priced below $300,000 mark, and 92 percent of them were priced below $500,000.

Denver area market update results for June 2010 can be viewed at 2nd Quarter Housing Statistics for Denver.

We may have been early, but we still think we are right. We're speaking of the impending recovery in the housing market. It's a contrarian opinion, given all the recent chatter and teeth-gnashing over delinquencies, foreclosures, shadow inventory, vacancies, and what not. But the number of data gatherers jumping aboard the better-times-ahead bandwagon is growing.

We are seeing better times in the housing market approaching its next up cycle. Our persuasive argument for a return to the housing prosperity: improving job growth, record-low new construction, record-low mortgage rates, and the best affordability conditions in 30 years. We would like to note that the downside of investing in housing right now is about as low as you will ever see it.

Even though price stability remains a concern, we could very well discover that the federal tax credits artificially raised housing prices during their tenure. That said, we stick by our hypothesis that a temporary dip in sales and prices should be expected, as buyers and sellers recalibrate to the reduced-subsidy environment. Going forward, we still see housing prices stabilizing and moving higher (albeit at a tortoise-like pace) and sales volume increasing.

Of course, our hypothesis is predicated on a continued job recovery, which both loosens purse strings and raises consumer confidence. When people are working, they become less obsessed with predicting the future and with holding out for the rock-bottom price. Yes, 4.5 percent fixed-rate mortgages are better than the 6 percent variety, but only when they are accompanied by lower employment.

As we've noted many times in the past, we'd prefer to see rising mortgage rates accompanied by rising employment (the two tend to move in tandem). The prospect of higher mortgage rates and better employment would get the current fence-sitters to refinance and buy. We think the potential for housing appreciation far exceeds the potential for depreciation for anyone looking five years down the road.

In today's market, there are definitely more right prices than wrong ones, especially for someone with a good credit history who is working with a creative mortgage professional and realtor whom are knowledgeable of financing options. Contact us today if we can further assist you in your mortgage and or real estate needs.

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