Thursday, November 13, 2014

Boulder Valley Real Estate Update

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


The days grow shorter. The nights grow longer. We edge toward the end of another year. That sounded a little morbid, didn’t it? All new beginnings must ultimately have an end.
Real estate markets always have a new beginning. When the frigid days of winter give way to the warm days of spring, a renewed optimism in the minds of buyers and sellers begins to blossom. Change is in the air.
It’s like running a marathon. At the starting line (the beginning) there’s a nervous energy prevalent in the participants. Smiles flourish. Good wishes are offered. There’s a loud bang and they’re off. A few hours later (the end) the picture is a little different. A lot of energy has been expended. The participants are tired, but there’s a sense of accomplishment, a sense of purpose. Fulfillment reigns supreme.
When we look at the Boulder Valley real estate market thus far in 2014, from a new beginning to an impending end, we see the various aspects of a marathon.

·         We started the year with home mortgage interest rates around 4.47% for the traditional thirty-year fixed rate loan. At this writing the rate is about 3.93%. No major hills and valleys to be encountered here as we run along.
·         Home values across the Boulder Valley increased on average by about 5.89% when compared to last year ($517,488 vs. $487,008). That’s good stuff. We’re keeping a steady pace, running with the wind at our back.
·         Home sales across Boulder County are down slightly when compared to 2013. Single family sales are off about 8.44% (2,799 vs. 3,057). Attached unit sales are up about 2.04% (1,196 vs. 1,172). The combined market is down about 5.54% (3,995 vs. 4,229). A few hills to traverse here. Need to expend a little more energy, but not a lot of ground to make up.
·         Available inventory continues to be an ongoing issue. New construction has somewhat filled the void with production homes being built in several of the communities to the east of Boulder. Boulder County started the year with 769 single family active listings. At the end of October there were 981 single family active listings. That number will continue to drop by the end of the year to be somewhat comparable to where we started.  We’re on a flat surface now. A gentle breeze carries us along. The finish line is in sight.

As we race toward the end of the year, we can look back with some degree of pride on what has been accomplished. It’s been a long ten months plus thus far, with a steadfast resolve to help buyers and sellers meet their real estate needs. There have been a few transactions that have gone awry, but many more that went as planned, resulting in satisfied buyers and sellers.

Just beyond the horizon sits a new beginning, awaiting its time and opportunity to spring forward and make its presence known. What lies ahead for it is unknown, but as Ralph Waldo Emerson said: “Life is a journey, not a destination.” Take the time to enjoy the run.