Wednesday, April 10, 2013

Boulder Valley Real Estate Snaphot

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


            One of the issues the area real estate market faced as the year began was available inventory of homes for sale across the Boulder Valley. 2012 ended with 814 single family active listings in Boulder County. That was down 27% from the end of 2011 (1121 active single family listings).
The decline in inventory was driven by sales activity. When comparing 2012 to 2011, single family home sales were up 24.44% (3258 vs. 2618) for Boulder County. Attached unit sales were up 20.80% (1144 vs. 947) for the same time periods. Collectively, those two market segments were up 23.47%.
Through March/2013 the Boulder County real estate market continues to sustain itself. Single family home sales are up 14.61% compared to through March/2012 (604 vs. 527). Attached unit sales are up 20.41% for the same time periods (230 vs. 191).
Below are some sold numbers for single-family homes for various geographic areas throughout the Boulder Valley. Information is courtesy of IRES (the Northern Colorado MLS).

                                                           2012 Sales                2013 Sales
                                                          1st Quarter               1st Quarter          
                         Area                        Single Family          Single Family       % Change
              Boulder                                        138                           143                  +3.62%        
              Erie                                              50                             70                    +40.0%
              Superior                                       19                             23                    +21.05%                  
              Louisville                                     28                             30                    +7.14%
              Lafayette                                     43                             51                    +18.60%      
              Longmont                                    172                           235                  +36.62%      
              Suburban Plains                           89                             96                    +7.86%
              Suburban Mountains                   34                             42                    +23.52%      
                                                                   ===                          ===                 ====
                  TOTAL                                  573                           690                  +20.41%

            This is the scenario that currently exists across the Boulder Valley, Metro Denver, and Northern Colorado – fewer listings and more sales. Combined with low mortgage interest rates the result is a perfect storm, if you’re a seller.
            Normally, scarcity creates demand, which in turn adds value to whatever is in short supply. Looking at the areas noted above and average sales value; here is what has happened to the average sales value for single family homes when comparing end-of-year 2012 to through March/2013: Boulder (+2.62%): Louisville (+1.56%); Lafayette (+12.61%); Longmont (+9.66%); Superior (+.96%); Erie (+9.50%); Suburban Plains (+5.45%); and Suburban Mountains (+3.40%). Collectively, these market areas are +5.14%.
            Look for the Boulder Valley spring real estate market to continue to flourish. Available inventory will creep-up, but will continue to be swept-up by prospective buyers waiting in the wings. Mortgage interest rates have trickled-up over the past few weeks, but there are no signs on the horizon they will shift noticeably either up or down for the balance of 2013.