Real Estate Market Update for the Boulder County Area.

Economic Snapshot

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

April/2014

            “Go west, young man” was a popular phrase in the 1800’s advocating the westward expansion of the country.  The phrase symbolized the idea that agriculture could solve many of the nation’s problems of poverty and unemployment characteristic of the big cities of the East.

            In the Boulder Valley, since the early 1970’s, there has been an on-going expansion of the bedroom communities east of Boulder. It started with new home construction in Louisville and Lafayette, then progressed to Superior, and now has found its momentum in Erie. Retail and commercial development followed in the footsteps of new home construction – you need to have rooftops to support business development.

            The most apt phrase today would be “Go east, home buyers!” There are several reasons for this: (1) New construction, at reasonable prices, continues to populate the landscape. (2) Resale homes, although at a low level (364 active single family home listings, with 150 of those under contract. 68 active attached unit listings, with 36 of those under contract.), are a good value. (3) Open space and recreational facilities have been a key component of growth throughout these communities, with quality of life being a major focus. Biking and jogging trails stretch from one community to the next. For young families, these are fantastic areas to raise children. Did I mention the awesome mountain views?  

With all this talk about going east, 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).

                                                           2013 Sales                2014 Sales

                                                          1^st Quarter               1^st Quarter          

                         Area                        Single Family          Single Family       % Change

              Boulder                                        143                           117                  -18.19%       

              Erie                                              70                             106                  +51.42%

              Superior                                       23                             18                    -21.74%                   

              Louisville                                     30                             27                    -10.00%

              Lafayette                                     51                             50                    -1.97%         

              Longmont                                    235                           181                  -22.98%       

              Suburban Plains                           96                             93                    -3.13%

              Suburban Mountains                   42                             43                    +2.38%        

                                                                   ===                          ===                 ====

                  TOTAL                                  690                           635                  -7.98%

            As various communities reach a build-out stage, the natural tendency of home builders is to search for virgin ground. Over the course of the past forty plus years that ground has been found east of Boulder. These small bedroom communities have grown over time and created their own identities. If you’re considering a move, take the time to “Go east!” and you’ll find a multitude of housing and family/retirement oriented opportunities.

Boulder Valley Real Estate Economic Snapshot

Economic Snapshot

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

February/2013

            The Boulder County real estate market continued its active pace in January/2013 as single family homes and attached unit sales outpaced January/2012 sales. Single family home sales were UP 20% (166 vs. 138). Attached unit sales were UP 29% (62 vs. 48). The collective market was UP nearly 23%. Sales figures for January/2013 approached January/2007 sales numbers.

            The inventory of available single family homes increased 5.77% at the close of January/2013 compared to the end of 2012 (861 vs. 814). Inventory levels will continue to grow as winter melds into spring and the real estate market gains momentum. Available inventory will be the key to how active the Boulder County real estate market is in 2013. 2012 ended the year with nearly 27% FEWER active single family homes on the market compared to the end of 2011 (814 vs. 1121). When you take 2010 into consideration, there were 40% fewer single family homes available at the end of 2012 (814 vs. 1353). The past two years have seen buyer activity increase swallowing-up available inventory. Expect this pattern to continue throughout 2013.

            On the financing side, the Federal Reserve has indicated they are going to keep lending rates at historic lows through the balance of 2013 and into 2014. The Fed’s goal is to get the national economy stabilized and then growing at a reasonable rate. National unemployment rates have dipped to slightly under 8%. Colorado’s unemployment rate has pretty much mirrored the national rate for the past five years.

When the Boulder County real estate market was HOT back in 2004 through 2007, the Colorado unemployment rate had dipped below 4%. The national rate dropped to around 4.5% at that time. In its August/2012 economic forecast, the Congressional Budget Office (CBO) estimated the unemployment rate would be 5.9% by 2017. Getting from there to below 4% again would require a Herculean effort on the part of the local, national and global economy.

But that’s the future. We have to deal with the realities of today. Here are some thoughts to chew-on in looking at the Boulder Valley real estate market.

1.    It’s a seller’s market, especially at the entry-level. Single family homes in Boulder County priced from $150,000 (yes, there are still a few out there at that price level) to $600,000 had an Absorption Rate of 114 days in January/2013. (That number will decline as the year progresses.) In January/2012 the Absorption Rate for the same price range was 236 days.

2.    If an entry-level property is priced competitively and in reasonable condition, multiple offers are now the norm. Short sale properties, especially, invite multiple offers.

3.    The upper end of the market (homes over one million) is showing some resiliency. In January/2013 there were nine million dollar plus homes sold in Boulder County. In January/2012 that number was seven.

4.    As buyer demand increases, home values follow suit. We’re seeing the trickle-up effect as mid-range and upper end homes are experiencing a positive movement in values.

In the Boulder Valley, spring and early summer are characteristically the busiest time of the year with home closings peaking in the March through August period.

Homeownership is still a great investment!!!

This is a great article about home ownership....and addresses all the doom and gloom that some publications are printing. 



http://online.wsj.com/article/SB10001424052748703376504575492023471133674.html?mod=WSJ_RealEstate_

Housing market snapshot from Colorado Association of Realtors

  Nearly three quarters of 4.9 million Colorado residents are homeowners.

 

 Housing costs are a primary factor in determining whether a state can effectively attract and retain  employees and businesses.

 

When a home is Colorado is sold...

 

•  Income generated from real estate related industries is $21,429
•  Additional expenditures on consumer items such as furniture, appliances and paint services is $5,311
•  It generates economic multipliers impact; there is a greater spending at restaurants, sports games and charity events. The size of this multiplier effect is estimated at $12,845

 

Homes sold by Colorado Realtors in 2009

 

•  59,156 single family units were sold in 209, a decrease of 12 percent compared to 2008. 13,258 Condo/Townhomes in 2009, a decrease of 13 percent compared to 2008.
• The median price for a single family home was $ 214,584, a decrease of 12 percent compared to 2008, for condos/townhomes was $150, 333 in 2009, and 18 percent decrease from 2008

 

Who were the buyers?

 

•  Thirty-nine percent of recent home buyers were first time home buyers.
•  The typical first time buyer was 29 years old, while the typical repeat buyer was 47 years old.
•  The median income was $58,200 among first time buyers and $83,900 among repeat buyers
•  Twenty-one percent of recent home buyers were single women, 9 percent were single males.
•  When considering the purchase of a home, commuting costs were considered a very or somewhat  important by 77 percent of buyers.

 

Foreclosures

 

• The foreclosure rate has been a major issue in Colorado for the past five years. Blighted properties, lost tax revenues and displaced families have left both physical and emotional scars across the state
•   Colorado foreclosure filings dropped from 39,607 in 2007 to 39,143 in 2008. The preliminary numbers for 2009 foreclosures filings are up 2.39 percent, reaching 40,070 according to Realty Track. Many are anticipating 2010 to rise slightly.
•  Colorado Association of Realtors in conjunction with CBS4 and the Colorado Foreclosure hotline has started a Foreclosure Prevention Campaign to educate and help consumers choose the best option for their families when faced with this issue. The campaign also includes useful home buying and selling tips. Information can be found at http://cbs4denver.com/homehelp

Contact Kathy Crowder for all your Real Estate needs