Tuesday, September 13, 2011
Longmont has the best real estate values in Boulder County!
Tuesday, August 16, 2011
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.
Monday, July 25, 2011
Economic Snapshot for Boulder Valley Real Estate
Economic Snapshot
July/2011
During the past few years there has been a great deal of discussion and debate in the economic arena about the national real estate market. Most of it hasn’t been pleasant. When something positive surfaces i.e. sales are improving, home values have stabilized, etc. it can be viewed from the perspective that the real estate market is beginning to shift. The days of doom and gloom are behind us and sunny days are the new norm.
Real estate markets have traditionally followed that scenario. They bottom-out at some point and then begin the arduous task of righting themselves and slowly (very slowly) gaining momentum. Buyers are once again actively engaged in the process. Sellers are once more receiving reasonable value for their homes. Realtors, mortgage lenders, appraisers, home inspectors and insurance companies feel the impact of the change. New home construction gears-up. The sound of hammers, saws and “boom boxes” once again fill the air.
The real estate market we have been experiencing for the past five or six years is slightly different. At times it offers the promise of a renewed enthusiasm. At others not so much. If you follow the stock market, it’s a roller coaster. One day it’s up based on some newly published economic index. The next day it’s down based on some foreign country threatening to default on their loans. The housing market can feel much the same. According to MetroList (MLS), real estate contracts for the Denver Metro area written in June/2011 are up 22.5% compared to June/2010. That’s a positive. Available homes for sale in June/2011 are down 15.7% compared to June/2010. That’s a positive. More sales; less inventory; scarcity creates demand.
The hope is the Denver Metro/Boulder Valley real estate market will sustain itself through the balance of the summer and into the fall. That home buyers and investors will see this as an opportune time to buy. Sellers will view this as a favorable time to move-up, move-down or move-on.
Below is a brief overview of the housing market in our area by locale for single family homes from IRES (the Northern Colorado MLS).
2010 2011 (Thru June)
Area Average Sales Price Average Sales Price %Change
Boulder $649,726 $672,072 +3.44%
Superior $426,358 $419,758 -1.55%
Louisville $440,176 $398,612 -9.45%
Lafayette $357,129 $362,301 +1.45%
Longmont $256,222 $246,738 -3.70%
Suburban Plains $549,136 $532,562 -3.02%
Suburban Mountains $412,176 $387,946 -5.88%
Broomfield $379,432 $338,805 -10.71%
Average … $433,246 $426,783 -1.49%
Tuesday, July 12, 2011
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Hey, Presidential Candidates: Where are the New Ideas to Fix Housing?
Fixing the housing market is perhaps the most important step toward fixing the economy, so you would think those who want to win the next presidential election would be talking about how housing creates jobs, the ways consumer confidence is tied to home prices, and what the heck they will do to fix the housing market and turn the economy around. Read
Visit houselogic.com for more articles like this.
Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Friday, June 10, 2011
Economic Snapshot for Boulder Valley Real Estate
Economic
Snapshot
A look at the
current real estate market; provided by RE/MAX ALLIANCE
June/2011
In
some obscure way, a healthy real estate market mirrors life; it seeks
balance. It trends toward a market where
there are a practical number of homes for sale, an adequate number of home
buyers, reasonable mortgage interest rates, and an acceptable level of
appreciation in home values. When all of
these elements are in alignment, tranquility exists. When they aren’t? Then some degree of confusion and uncertainty
prevails.
The
Boulder Valley real estate market has not
experienced a “balanced housing environment” for the past few years. Inventory levels of available properties have
declined as many homeowners have decided to either stay where they are and not
sell their home or they have rented their home and moved on; themselves often
renting somewhere else. Homebuyers have
become less visible these days. Through
May/2011, Boulder County single family
home sales are down 18% and attached unit sales are down 34% when compared to
the same time frame for 2010. The
overall market is down 23%.
In today’s real estate market, there are certain
considerations at play. (1) Buyers are bargain hunters. They want the maximum return on the dollars
they are investing in a home. They don’t
want to lose money. They believe in the
old adage, “Buy low, sell high.”, but
they aren’t always confident what low is or what high might be. (2) Price
overcomes all objections. There’s a
price where everything will sell, even if the seller needs to bring funds to
closing. That’s one of the issues facing the housing industry today; it’s an
upside down world. Many homes are worth
less than what is owed on them. The
solutions to that dilemma are to stay the course and hope housing values
improve, let the bank have the property or belly-up to the bar at closing with
cash in hand, if you’re the seller.
(3) He/She who has the gold makes the rules. Mortgage companies and banks are the pathway
to the great American dream; home ownership.
Unfortunately, that pathway is strewn with stringent governmental and
banking regulations, conservative underwriters and appraisers, and difficult
qualifying requirements. Mortgage rates
have continued to hover in the 4.5% to 5.0% range for the traditional
thirty-year fixed rate loan. (4) Seller’s are unrealistic regarding pricing. Real estate markets are like sifting sand;
they change quickly. New neighborhood
sales reflect on neighborhood values.
What sold down the street three or six months ago may not be an accurate
representation of what a seller’s home may be worth today. (5) Consumer
awareness is at an all-time high. Home
buyers have immediate access to a plethora of housing information on the
Internet. Some of it isn’t always accurate,
but it’s there. More consumers today
begin their search for a home, car, appliances, etc. on-line than ever
before. They do their homework. When they show-up to purchase, they are
educated about the nature of the marketplace.
On the bright side, homes are
continuing to sell. Median home values
for the Northern Colorado housing market have remained relatively stable for
the past few years, only off seven (7) percent when compared to 2005 [slightly
over one (1) percent per year on average].
Much better than what has happened in some of the bell weather states
where double digit depreciation has been the norm.
Wednesday, May 25, 2011
572 E 16th Ave, Longmont CO 80504
Fabulous, impeccably maintained two story home with all the features on the most wanted list!! One of this homes many attributes is a wonderful updated kitchen with granite counters, stainless steel appliance, and island and breakfast nook. Main floor is light and bright and offers a family room with a gas log fireplace, formal dining and living area as well as a den and ¾ bath. The home also includes surround sound with built in speakers for your entertainment pleasure! Laundry is also on the main floor. Upstairs is the Master Suite, with a beautiful, updated, five piece master bath, and walk in closets with built in features and a dressing area, as well as 2 additional bedrooms and a full bath. Daylight basement is finished with a large rec room (gas stove), a large 4th bedroom and a full bath! The lucky new owner will appreciate all the storage this home offers. The outside living areas host a spacious deck, patio and other sitting areas. The gardens are delightful and not a detail is missed, including the paver walkway from the front to the back of the home. This delightful home backs to and has access to open space and walking trails. The large 3 car garage with its organization and workbench is just another feature of many you will find in this lovely home. A rare gem not to be missed!
Friday, April 15, 2011
Update from Longmont Area Economic Council
1st Quarter 2011
Currently we have 201 primary employers in the
Longmont area.
~ 4 new companies: Anew Green, CPU Technology,
Digital Data Services, and Honeybee Robotics which
represent 16 new jobs to-date in 2011.
~ 2 companies have closed or relocated their operation
out of Longmont to-date in 2011 resulting in a loss of
49 positions. Those companies are BMGI Corporation
and DataPlay.
~ 27 existing companies have added employees to their
operation to date in 2011 resulting in 176 new jobs.
~ 9 existing companies have cutback employment in to
date in 2011 resulting in a loss of 57 jobs.
This gives us a net gain of 86 primary jobs to date in
2011.
~ The vacancy rate for real estate inventory (industrial
and office) in the Longmont area through the first
quarter of 2011 is 14.2% with 1.21 million square feet
available. (Net primary employer absorption through
the first quarter 2011 is -22,744 square feet). Note that
these numbers reflect only facilities that are ready for
occupancy.
~ The Longmont Area Economic Council worked with
15 new prospects looking at the Longmont area for
relocation and/or expansion of their businesses during
the first quarter 2011. This compares to 13 for the same
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