Thursday, July 10, 2014
Boulder County economic update
A look at the current real estate market, provided by RE/MAX ALLIANCE
Thus far this year home values continue to rise across the Boulder Valley as demand exceeds supply. New construction throughout the eastern portion of Boulder County has augmented a portion of the increased buyer demand, but resale listing inventory has plateaued, with monthly home sales somewhat mirroring monthly listings entering the market.
In late June/2013 there were 1,353 active single family home listings in Boulder County. At the end of June/2014 that number stood at 1,284. Sales of single family homes through June/1014 are down 10.40% compared to through June/2013 (1,543 vs. 1,722). Attached unit sales for the same time periods are comparable (645 vs. 648).
Below is a brief overview of sales values by locale for single family homes from IRES (the Northern Colorado MLS).
2013 (Thru June) 2014 (Thru June)
Area Average Sales Value Average Sales Value % Change
Boulder $749,116 $804,668 +7.41%
Superior $469,584 $504,825 +7.50%
Louisville $504,165 $519,973 +3.13%
Lafayette $423,943 $429,902 +1.40%
Longmont $280,923 $304,563 +8.41%
Suburban Plains $571,726 $588,583 +2.94%
Suburban Mountains $427,505 $510,580 +19.43%
Broomfield $391,432 $410,368 +4.83%
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Average … $476,568 $499,963 +4.90%
For Boulder County, this summer housing season is similar to last year’s. Here are some comparisons.
· The Absorption Rate (the time it takes for the market to fully turn) for single family homes in June/2013 was 144 days; June/2014 was 150 days.
· The thirty-year fixed rate mortgage could be had for 4.07% in June/2013; 4.16% in June/2014 … zero discount points on those rates. Thirty years ago (June/1984) the rate was 14.42%, with 2.5% in discount points. Each point lowers the interest rate by one-eighth to one one-quarter of the interest rate. Zero discount points would have equated out to a rate of around 15% in June/1984.
· As noted above, the level of available inventory for the two years is very similar. Inventory normally peaks around mid-summer and then begins to slowly drift lower as summer turns to fall and winter makes its presence known. 2013 ended the year with 679 active single family home listings in Boulder County.
· Through June/2013 there were exactly 100 single family home sales in Boulder County for $1,000,000 (one million) and up. Through June/2014 that number stood at 110 single family homes.