Metro Denver's home buying season, which started with a bang this year, is ending with a whimper.

There were 3,079 home sales closed in the metro area in August, down 5.5 percent from the 3,259 closed in July, according to home sales numbers released Thursday.

Sales are down significantly from the more than 4,000 homes closed per month in April, May and June, when federal tax credits for move-up and first-time buyers drove demand.

"We had this frenzy of activity to get homes under contract," said Gary Bauer, an independent real estate analyst. "We are seeing fewer showings now, and buyers are being very deliberative and taking a long time."

The expiration of the credits contributed to an even steeper plunge in homes placed under contract, from 6,616 in April to 3,883 in May.

But the number of contracts to buy homes has held steady in the 3,800 to 4,000 range per month ever since, helped in part by historically low interest rates.

"There is a market out there, but the market is defining itself each and every month," Bauer said.

Compared with August 2009, sales contracts were down 24.4 percent, while actual closings were off 21.2 percent.

More sluggish activity contributed to a 16.8 percent rise in the inventory of homes available for sale to 23,615 in August compared with a year earlier.

Measured year-to-date, however, home sales are down 1.4 percent and homes under contract are down 8.6 percent.

That would seem to indicate the homebuyer credits pulled demand forward.

"Many of those earlier sales would be occurring today if it weren't for the tax credit," said Larry McGee, president of the Berkshire Group.

But despite a sharp drop-off, buyers didn't disappear entirely when the credits ended April 30.

"We are doing better than many of us expected," McGee said.

Despite the slowing pace of home sales, prices remained fairly stable. The median price for homes sold in August was $239,900, compared with $240,000 in July and $227,000 in August 2009.

The median price of condos sold rose to $130,000 in August from $129,000 in July but is down from a median sales price of $144,500 a year ago.

Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com