The Worker, Homeownership, and Business Assistance Act created a tax credit of up to US$ 6,500 for qualified homebuyers for purchases after November 6, 2009 and up to April 30, 2010, or purchased by September 30, 2010 and under contract by April 30, 2010. Throughout most of 2010, there was much discussion and debate about whether such a credit would provide the needed stimulus to get the housing market permanently on the path of real recovery, or if it would prove to be just a temporary boost, benefiting a few at the expense of many.
After some signs of recovery in the spring, home sales, housing starts, and home price appreciation moved back to, or close to, record lows during the latter half of 2010. After moderating in late 2009/early 2010, inventories of unsold homes, as measured in both units and months’ supply, are back up at levels witnessed in 2008 when the housing market was in the midst of its crisis. Mortgage delinquency rates and new foreclosures continued to increase in both the prime and sub-prime loan markets and the national unemployment rate remains high, fueling further speculation about the strength or duration of any recovery in the housing market
The S&P/Case-Shiller Home Price Indices1 were a primary topic of discussion throughout the year. At both the national and regional levels, the indices clearly illustrate the historic declines in home prices beginning in mid-2006, the modest recovery that began in the early spring of 2009, and the recent reversal that seems to be occurring, as observed in the latest reported data.
In Denver, the non-seasonally adjusted figures show that home prices declined as well as number of homes on the market.
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