Economic
Snapshot
A look at the current real estate market; provided
by RE/ MAX ALLIANCE
July/2013
Over
the course of the past eighteen months the Boulder Valley real estate market
can be characterized as one of demand exceeding supply. Spawned by low mortgage
interest rates and improved economic conditions, the Boulder Valley real
estate market has flourished. The direct result of that is an increase in home
values. All geographic segments of the marketplace have benefitted, with the
core area of Boulder and those outlying areas closest to Boulder showing the
most improvement.
Below is a brief overview of the
housing market in our area by locale for single family homes from IRES (the
Northern Colorado MLS).
2012 (Thru June) 2013 (Thru June)
Area Average Sales Price Average Sales Price % Change
Boulder $666,232 $749,116 +12.44%
Superior $410,166 $469,584 +14.48%
Louisville $421,352 $504,165 +19.65%
Lafayette $399,302 $423,943 +6.17%
Longmont $255,818 $280,923 +9.81%
Suburban
Plains $546,327 $571,726 +4.64%
Suburban
Mountains $394,289 $427,505 +8.42%
Broomfield $357,499 $391,432 +9.49%
======= ======= =======
Average … $442,418 $476,568 +7.71%
As
the economy has shown signs of stabilization, home mortgage interest rates have
trended up slightly over the past sixty days. The traditional thirty-year fixed
rate loan that could be had for under 4%, now resides closer to 4.5%. All
indications are that mortgage rates will continue to hover around that mark for
the foreseeable future.
Sales
activity for single family homes and attached units across Boulder County continues
to outpace 2012 numbers through June of each year. Single family home sales are
up 6.43%; attached unit sales are up 15.23%; and the cumulative market is up
8.71%. The Absorption Rate for single family homes across Boulder
County is at 144 days through June/2013. That number was 182 days in
June/2012. The inventory level of available single family homes in Boulder
County crept up 5.20% in June/2013 vs. May/2013 (1,355 vs. 1,288).
Faced
with the dog days of summer, the Boulder Valley real estate market is
experiencing continued improvement in sales activity over 2012, an increase in
home values, an upturn in home mortgage interest rates, and fewer days on the
market. With the possible exception of the somewhat higher mortgage interest
rates, the Boulder Valley real estate market is healthy. Look for another
upward push in sales activity before we drift into fall, when buyers and
sellers typically begin the process of settling in for the start of the school
year and the holiday season. This year may be a little different with continued
pent up demand potentially fostering a more dynamic fall selling season.
