Long Term Trends

Day-to-day it is sometimes easy to forget that real estate is a cyclical market. It is helpful to step back and look at a broader view. I recently compared sales, dollar volume, median price and sales price to list price ratio (average negotiation) from January to mid-October for the years 2000-2007 for all sales in Boulder County. Here is what I found.
     

  • The number of sales has modulated. First it decreased right after 9/11. Then it increased to record highs only to have fallen since late 2005.
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  • The dollar volume has followed the same pattern but the curve is much more subtle due to the increase in median prices.

 

  • The median price has continued to rise at a rate averaging 4.6%.
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  • The average negotiation has increased since 2000 but not as much as you might think. During the hot market of 2000 the average negotiation was 1.22%, now it is 3.05%.
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