Economic Snapshot

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

April/2012

            With the advent of spring, there appears to be a ray of sunshine for the Boulder County real estate market. Through March/2012 single family homes sales are UP approximately 11% year-to-date versus 2011; attached unit sales are UP approximately 7% year-to-date versus 2011; the overall market being UP approximately 10% year-to-date versus 2011. Assuming the local real estate market keeps a similar pace over the balance of the year, there will be approximately 4,000 single family homes (73%) and attached units (27%) sold in 2012. This would be somewhat comparable to sales activity for 2008 (4,270 sales), but still considerably below 2005 figures (5,795 sales) when activity peaked. 

            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).

                                                           2011 Sales                2012 Sales

                                                          1^st Quarter               1^st Quarter          

                         Area                        Single Family          Single Family       % Change

              Boulder                                        92                             138                  +50%           

              Erie                                              46                             50                    +9% 

              Superior                                       15                             19                    +27%                       

              Louisville                                     35                             28                    -20%

              Lafayette                                     36                             43                    +19%           

              Longmont                                    140                           172                  +23%           

              Suburban Plains                           99                             89                    -10%

              Suburban Mountains                   31                             34                    +10%           

                                                                   ===                          ===                 ====

                  TOTAL                                  494                           573                  +16%

            In the April/2012 issue of RISMedia’s Real Estate Newsletter, they listed outside influences that may have an impact on real estate.

1.      The Election: Will economic conditions improve as the President seeks to remain in office or will there be upsets with a change in leadership?

2.      The Job Market: The overall employment picture is improving, but the pace and direction it takes is critical to the housing market.

3.      The Weather: Did the calm winter rob sales from the spring and summer and frontload stats for 2012?

4.      The Banks: Credit standards have strangled many would-be homebuyers. If and how much the criteria loosens this year will have a direct impact on housing.

5.      The Investors: Many feel investors will play a big role this year. Their impact on decreasing excess inventory could provide an unanticipated boost to home values.

6.      The Renters: A big benefactor of the housing decline, the rental market has been booming. However, recent stats show that rising rents combined with low home prices has now made owning a home more affordable than renting one.