I received a very nice letter of recommendation from a past client!

To Whom it may Concern:

We lost my father unexpected in the spring of 2013.  Which left my mother alone in the house her and my father shared together for over forty years. 

I was concerned about this situation over the long term, as I lived nearly an hour drive away.  With no other family nearby that was going to leave her a little isolated. 

I wanted her move closer to me, so I could be more available to her.  And I wanted it sooner rather than later.  But since my mother has lived on the same block since she was two years-old, she was not eager to move anytime soon. 

Realistically, I thought it would probably be five, maybe even ten years before she might choose to make that sort of move.  However, I thought if I started having her look at houses near me, occasionally, it would encourage her to move forward sooner. 

This is how we met Kathy, in the spring of this year, 2014.  We were "window shopping" and called Kathy to view a house she was listing in my  own neighborhood. 

The house was very nice, but not my mom's style. However, we both found Kathy to be very personable and enjoyed viewing her listing.  We felt at ease with her, and there was a real "click" between her and my mother, in particular.  

I will tell you that I don't remember wether we contacted Kathy again or, she contacted us.  It was such a natural progression of communication that it doesn't stand out to me.  And I can tell you this is the beauty of Kathy's manner and professionalism.

Kathy really knows how to talk, listen, and respond to her customers.  In fact, she never made us feel as if we were her customers.  She made us feel more like good friends, and she didn't want us in just any old house.  Rather she was determined to help us find the house perfectly suited to our wants and needs.  She is very patient and thoughtful that way.

We felt truly cared for and listened to.  And, amazingly, because of her keen abilities to respond so seamlessly to the conversations we had while house hunting, my mother found her perfect home. 

It took less than 5 months, beginning to end --not years!  I was so astounded.  She really knew how to connect with my mother in a way that helped her make one of the biggest lifestyle changes she's made in a very long time.

I will always be grateful to Kathy for helping my mother find the house of her dreams, so close to my own house.  My mother now lives 10 minutes away, and can enjoy her grandkids daily.  Rather than an hour away, with only the occasional visits she got previously. 

We are all very happy with this new change in our life, and I give Kathy so much credit for that change.  We feel very lucky to have connected with her.  She is so personable, knowledgable, and professional!  I highly recommend her to anyone looking to make a move, she knows her business and is a pleasure to work with! 

Sincerely,

Darla Bradford

Boulder County economic update

Economic Snapshot

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

July/2014

              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%

                                                   =======                    =======                    =======

                 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.

              

Boulder Valley Real Estate Snaphot

Economic Snapshot

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

April/2013

            One of the issues the area real estate market faced as the year began was available inventory of homes for sale across the Boulder Valley. 2012 ended with 814 single family active listings in Boulder County. That was down 27% from the end of 2011 (1121 active single family listings).

The decline in inventory was driven by sales activity. When comparing 2012 to 2011, single family home sales were up 24.44% (3258 vs. 2618) for Boulder County. Attached unit sales were up 20.80% (1144 vs. 947) for the same time periods. Collectively, those two market segments were up 23.47%.

Through March/2013 the Boulder County real estate market continues to sustain itself. Single family home sales are up 14.61% compared to through March/2012 (604 vs. 527). Attached unit sales are up 20.41% for the same time periods (230 vs. 191).

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).

                                                           2012 Sales                2013 Sales

                                                          1^st Quarter               1^st Quarter          

                         Area                        Single Family          Single Family       % Change

              Boulder                                        138                           143                  +3.62%        

              Erie                                              50                             70                    +40.0%

              Superior                                       19                             23                    +21.05%                  

              Louisville                                     28                             30                    +7.14%

              Lafayette                                     43                             51                    +18.60%      

              Longmont                                    172                           235                  +36.62%      

              Suburban Plains                           89                             96                    +7.86%

              Suburban Mountains                   34                             42                    +23.52%      

                                                                   ===                          ===                 ====

                  TOTAL                                  573                           690                  +20.41%

            This is the scenario that currently exists across the Boulder Valley, Metro Denver, and Northern Colorado – fewer listings and more sales. Combined with low mortgage interest rates the result is a perfect storm, if you’re a seller.

            Normally, scarcity creates demand, which in turn adds value to whatever is in short supply. Looking at the areas noted above and average sales value; here is what has happened to the average sales value for single family homes when comparing end-of-year 2012 to through March/2013: Boulder (+2.62%): Louisville (+1.56%); Lafayette (+12.61%); Longmont (+9.66%); Superior (+.96%); Erie (+9.50%); Suburban Plains (+5.45%); and Suburban Mountains (+3.40%). Collectively, these market areas are +5.14%.

            Look for the Boulder Valley spring real estate market to continue to flourish. Available inventory will creep-up, but will continue to be swept-up by prospective buyers waiting in the wings. Mortgage interest rates have trickled-up over the past few weeks, but there are no signs on the horizon they will shift noticeably either up or down for the balance of 2013. 

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.

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.

Boulder County Economic Snapshot

Economic Snapshot

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

March/2012

            As is characteristic of this time of year, the inventory level of available homes starts to expand. For Boulder County, active listings are up 18% through February/2012 compared to the end of 2011. Sales of single family homes and attached units are up 4% for the first two months of this year compared to the first two months of 2011.

            After four years of a declining real estate market (2006 to 2009) and the past three years having reached a plateau in sales activity (2009 to 2011), there appears to be a renewed buyer interest in the Boulder County real estate market. This can be attributed to a variety of reasons.

·         Home Values Have Stabilized: Through February/2011 the median sold price for a single family home in Boulder County was $365,000 and an attached unit was $198,202. Through February/2012 those values were $370,000 for a single family home and $195,000 for an attached unit.

·         Home Mortgage Interest Rates: Who would have thought mortgage interest rates would hold at historic lows for as long as they have. The traditional thirty-year fixed rate loan continues to hover around 4%. Adjustable rate mortgages (those dastardly fiends that caused many people to lose their homes) can be had for fewer than 3% with the first five years fixed.  Interest only loans (also a bane of the past) are still available, but not as attractive as they once were.

·         Real Estate Is A Bottom Up Business: When a real estate market begins to churn in a positive direction it always starts at the bottom. Less expensive properties fuel the fire. This activity creates the opportunity for the domino effect to surface. Low end sellers buy more expensive homes causing a chain of sales to occur. Lack of available inventory can hamper this cycle as sellers wishing to move-up can’t find what they want.

·         New Construction:  In the movie Field of Dreams, the voice in the cornfield whispers: “Build it and they will come.” That is true of new construction. Activity begets activity. The sound of boom boxes and hammers pounding is like a moth drawn to a light, they attract buyers. Production builders have seen the light with new homes being constructed in pocket areas across Boulder County this late winter/early spring.  

·         Short Sales and Bank Foreclosures: These continue to play an active part of the real estate market as banks and the Federal Government continue to work their way through this process. When this mess is finally put to bed, we would hope the financial institutions and the government have learned their lesson and we won’t find ourselves treading down this path again – ever. 

·         Unemployment Rate: Jobs fuel the economy. The current unemployment rate for Colorado is running around 7.9%. At the beginning of 2011 it was at 8.9%. When the Boulder County real estate market peaked in 2005 the Colorado unemployment rate stood at 5.2%.

            There are a lot of positives in the Boulder County real estate market as we head into the spring. It continues to be a buyer’s market, especially in homes priced above a million dollars, but we are gradually moving toward a more balanced marketplace, which is good for both buyers and sellers.