Thursday, January 20, 2011

Real Estate Stats for Boulder County

Economic Snapshot

A look at the current real estate market; provided by RE/MAX ALLIANCE


The first decade of this new millennium was one of contrasts. It began on loose footing with the fiasco and the events surrounding 9/11. Then followed the years of unbridled economic growth, where people’s thoughts were centered on early retirement, travel abroad and procuring more adult toys. The decade limped to a close as the government attempted to pump new blood into an ailing economy by offering tax credits to homebuyers and salvaging the banking industry; home mortgage interest rates fell to historic lows. The question that begs an answer is, “Where are we ten years later?”

Let’s take a quick look back to see where the Boulder County real estate market was ten years ago relative to today. In January/2001 the traditional thirty-year fixed rate mortgage was at 7.07%. In December/2010 that same loan was at 4.86%. The average sales value of a single-family home in 2001 was $361,833. In 2010 the average sales value of a single-family home was $442,694. That equates to a 22.34% increase in the average sales value; approximately 2.23% per year. Using the above figures, with a 20% down payment, the principle and interest payment for the average home in 2001 was $1,945.28. In 2010, that number would be $1,879.88. Things have improved incrementally over the course of the past ten years.

The Boulder Valley real estate market appears to have weathered the economic storm and reached a point of stabilization. Boulder County sold properties in 2010, single-family homes and attached units, was 3,660. This compares to 3,665 sales in 2009. The inventory of available homes for sale still exceeds the number of potential buyers, with the Absorption Rate currently standing at 6.26 months.

Per the chart below, the average home values of sold properties have improved over last year in most market areas. This should continue as buyers who have been standing on the sidelines view this as an opportune time to purchase homes in the higher price ranges.

Home mortgage interest rates have trended-up slightly over the course of the holidays. As the economy continues to show signs of improvement, expect mortgage rates to vacillate around the 5% mark as we head into spring.

Below is an overview of sales activity for the past two years for single family homes in the various Boulder Valley areas, courtesy of IRES – the Northern Colorado MLS.

               2009       2010           %Change         2009                2010                    % Change

Area       Solds        Solds          Change          Average Price     Average Price        Change

Boulder    563           622         +10.48%         $647,584           $650,280             +.416%

Louisville   202          194           -3.96%           $394,214           $440,512          +11.74%

Lafayette    219         229          +4.56%          $352,667            $357,377           +1.33%

Superior     127         107           -15.75%         $413,935           $426,358            +3.00%

Longmont   891         831            -6.74%          $240,902           $256,175            +6.34%

Sub. Plains  373        449            +20.37%         $510,351          $549,796            +7.73%

Sub. Mtns.  203        230            +13.30%         $415,567           $411,662            -.940%

Broomfield   353       338              -4.25%           $353,343           $380,074           +7.56%

                    ===      ===             ======          =======           ======             ======

Totals …     2931     3000             +2.35%          $405,363            $433,427            +6.92%

Wednesday, January 19, 2011

Economic Outlook Digital Magazine!!

New from RE/MAX Alliance, our Economic Outlook Digital Magazine!!  Inside you will find all kinds of great information, from what the real estate market indicators are to home staging tips.  There is even a section for kids.  Take a look!! 

Click here to read the magazine.

Friday, January 14, 2011

LAEC reports primary job gains for the Longmont area!

4th Quarter 2010

Currently we have 197 primary employers in the Longmont


~ 10 new companies: Abound Solar, American Recreation

Products, Goliath Systems, Niwot Technologies, Onsemble,

Inc., Parascript, RF Concepts, Synapse Design, TechPubs

Global, and TerraLUX which represent 148 new jobs in


~ 14 companies closed or relocated their operation

out of Longmont in 2010 resulting in a loss of 156

positions. Those companies are AgInfoLink, BioHarmony

Corporation, Cevan Nutritionals, Colorado Micro

Precision, Cornay Company, Earthmap Solutions,

ExcelStor Technology, FreeDesign, Great Basin Scientific,

InPhase, Knowledge Forge, Monolithic Sculptures, Peak

Industries, and Storage Genetics.

~ 67 existing companies added employees to their

operation in 2010 resulting in 661 new jobs.

~ 47 existing companies cutback employment in 2010

resulting in a loss of 317 jobs.

This gives us a net gain of 336 primary jobs in 2010.

~ The vacancy rate for real estate inventory (industrial and

office) in the Longmont area through the fourth quarter of

2010 is 14.6% with 1.26 million square feet available. (Net

primary employer absorption through the fourth quarter

2010 is +7,444 square feet). Note that these numbers

reflect only facilities that are ready for occupancy.

~ The Longmont Area Economic Council worked with 10

new prospects looking at the Longmont area for relocation

and/or expansion of their businesses during the fourth

quarter 2010 for a total of 45 for the year. This compares

to 7 for the same quarter in 2009 and 52 for the year.

The Longmont Area Economic Council has a

comprehensive database of available land and industrial/

office buildings. We service the City of Longmont, Lyons,

Niwot and unincorporated Boulder County area.