Real Estate predictions for 2012

Fixed mortgage rates rise above record lows

Fixed mortgage rates rise above record lows


Rates are so low...if a real estate transaction is in your futures...the time is now...for the first time buyer, the move up or move down buyer!!

Fixed mortgage rates rise above record lows

Fixed mortgage rates rise above record lows


Rates are so low...if a real estate transaction is in your futures...the time is now...for the first time buyer, the move up or move down buyer!!

Increase in short sales give market a little breathing room

Increase in short sales give market a little breathing room

Boulder Valley Economic Snapshot

October/2011

            The economic climate these days is reflective of a yo-yo.  One day it’s up, the next it’s down.  I believe we would all be a little happier if it would stay about the same from one day to the next; preferably up.

            The Boulder County real estate market has remained relatively stable the past few years.  According to IRES, the Northern Colorado Multiple Listing Service, in 2009 there were 3,665 single family/attached unit sales in Boulder County. There were 3,660 sales in 2010. Through September of this year that number is tracking about 6.5% behind last year, which would equate out to around 3,425 sales for 2011.

            Home mortgage interest rates have dropped to the lowest level in decades, which has impacted the refinance market, but not so much the resale market of homes.  As is characteristic of this time of year, the inventory of available properties continues to drop.  This pattern will sustain itself into the spring of 2012.

            If you are a home seller, where do you go from here in a real estate market that will naturally continue to soften? Where there are fewer prospective buyers, but also fewer options for the buyers who are actively in the market.  There’s an old saying in real estate: “Price overcomes all objections.” That statement holds most true in a declining real estate market – a buyer’s market.

            The Boulder County real estate market has struggled to right itself since 2005, when the local market peaked.  There were 5,795 single family/attached unit sales that year.  That’s a huge difference from where we are today.  Admittedly, the Boulder County real estate market hasn’t felt the significant negative impact in housing values that other parts of the country have experienced, but it still has been affected by the economic environment.

            The Absorption Rate for Boulder County (single family homes) at the end of September was 7.7 months or 233 days. If you are attempting to sell a home priced at over one million dollars, the Absorption Rate averages 24.8 months or 756 days.  That’s a long time to wait for a buyer.

            As we wind our way through fall toward winter, there doesn’t appear to be a white knight perched on the horizon that is going to magically lift us out of this somewhat stagnant real estate market.  Jobs are the white knight.  They are at the core of the economy.  As jobs are created, the economy shifts in a positive direction, which benefits the housing industry.

            So, if you are a home seller looking for that one buyer, you need to be the best value not only on your block, in your neighborhood or in your community; you have to be the best value out there from the perspective of that one buyer. Buyers have other options to choose from and they are willing to wait for the right opportunity.

            Real estate is a little different from many other types of business. It is a business of negotiation pitting buyers against sellers; each wanting to garner the “best deal”.  That is where the Boulder County real estate market is today.  Buyers have the upper hand. They call the shots. Sellers who aren’t willing to play in what seems like a “zero sum game” can be left standing on the sidelines; hoping for another prospective buyer to come their way.

Longmont has the best real estate values in Boulder County!

Looking to relocate to Boulder County? Of course, it's a great place to live and offers many opportunities for recreation with its open space, bike trails, hiking trails and fun events. The city of Boulders median price for a single family home is around $550,000 and $273,000 for attached homes!! Louisville's single family home median price is $389,000 and about $220,000 for attached homes. Lafayette's is $309,000 for single family homes and $179,000 for attached. Longmont's prices are a bargain in comparison!! Median price for a single family home is about $225,000 and about $168,000 for an attached property! Having lived in Longmont for 28 years, I can tell you the city is a great place to live. Longmont's population is about 85,000 and offers wonderful amenities, such as parks, bike and walking trails, fun festivals and events year round. Contact me if you would like more information on the housing market in Longmont Colorado!

Economic Snapshot August, Boulder County

August/2011 The pace of things is much quicker these days and much more sensitive. Technology is the culprit with its Internet, smart phones and social networking. Want to know something about anything and it’s only a few keystrokes away on a computer, phone or electronic notebook. It is truly an age of information. Real estate has become part of this information age with a variety of Internet sites available to obtain current housing information. These would include the inventory of homes for sale, home values, mortgage interest rates, foreclosures and bank repossessions. Possibly everything a potential home buyer or seller would need is available somewhere on-line. What is missing is the human touch. Finding a home to purchase is part of the process. Determining how to purchase it is the part that entails the human aspect. From negotiating a contract to procuring financing to getting over inspection and appraisal hurdles, and making it to the closing table without going insane requires the support of Realtors, lenders, appraisers, and inspectors. Today’s real estate market is teeming with anxiety. Seller’s are dealing with a buyer’s market. Buyer’s are unsure if now is a good time to buy or should they wait. Mortgage lenders are faced with changing regulations and increased qualifying requirements. Appraisers are conservative in their appraisals. Realtors are working with sellers to price properties realistically. In the end, it all seems to work as seller’s sell and buyer’s buy. In looking at the Boulder County housing market, things are beginning to improve. For July/2011, single family home sales were UP 26% compared to July/2010; attached unit sales were UP 28%; overall the market was UP 26.4%. Year-to-date (compared to through July/2010), the Boulder County housing market is down 7% for single family home sales and 27% for attached unit sales; overall it is down 13%; but the market should continue to improve over the balance of the year compared to 2010. In evaluating the Boulder County housing market, one of the key focal points is the Absorption Rate i.e. how long does it take for the market to turn. The Absorption Rate characteristically peaks at the beginning of the year and then declines as sales activity improves. For 2010, the ending Absorption Rate for Boulder County was 6.3 months. At the end of July/2011 the Absorption Rate stood at 8.9 months for Boulder County. That was down from 9.5 months in June/2011. Home mortgage interest rates continue to remain reasonable: 30 year fixed rate at 4.5%; 15 year fixed rate at 3.75%; 5/1 ARM at 3.125% and a 7/1 ARM at 3.375%. All of these are at zero origination fee and no discount points. Lender buy downs are available for lower rates. Like everything else these days, mortgage rates vacillate up and down on a daily basis. As the balance of the summer drifts away and we head into the “cooler” days of fall, the Boulder County real estate market will hit its traditional peak in sales activity and then begin to naturally slow. Sellers who need to sell now will need to take a serious look at how their home is priced relative to the market. Buyers will need to take advantage of moderate mortgage interest rates and recognize that now is a good time to buy.