Sales for the year are down 13.4% from last year through three quarters and down 28.5% from the peak year in 2005. While we have definitely seen slowing activity it is good to remember that we are comparing this years sales to a record braking era. We are comparing this years sales to an era of easy money where anyone who wanted a mortgage had a good chance of getting one. We are coming back to reality and the transition will hurt a bit. Locally we did not see a huge gain in value along with the easy credit so our prices are relatively stable.
Helping this is the reduction of the number of properties on the market. The gross number of homes on the market has decreased since last year. This is important because when the market is flooded with unsold homes the prices tend to drop. The market in Boulder County over $1 Million seems to be over supplied and prices will need to come down in order to move what is now for sale. The lower price ranges are healthier.
The first graph below shows the gross inventory of single family homes on the market and the second graph shows the number of closings of single family homes in Boulder County in any given month. The yellow bars show sales in 2008.