A chinook wind came through last night and melted most of the snow. Today was a beautiful, warm winter day and I took the opportunity to take a quick hike. The light was just beautiful coming off Kohler Mesa into Skunk Canyon. It was great to be able to take advantage of one of the best reasons to live in Boulder; a refreshing January hike.
The number of sales in the Boulder County luxury market ($1,000,000 and greater) showed an increase during 2010. The luxury
market has more to do with stock portfolio values than employment rates and after a year of recovery the equity markets showed enough strength to increase buyer confidence.
The luxury market in Boulder County is considered a buyer’s market and buyers were looking for good values. There are currently 254 residential properties listing for sale in Boulder County. We are at low ebb because of the holidays. Currently there are 19 homes under contract.
?The number of sales of homes priced $1million and up increased 13.6% from 2009 to 2010.
The median price for homes that close for more than $1 million has been relatively stable at about $1.3 million over the past decade. The red line shows the top price paid for a home during each year.
Average Negotiation
Luxury Market Overall Boulder County Market
2010 – 8.18% 2010 – 4.17%
2009 – 6.77% 2009 – 3.81%
2008 – 5.51% 2008 – 3.2%
2007 – 6.18% 2007 – 3.15%
2006 – 5.99% 2006 – 2.78%
2005 – 5.32% 2005 – 2.44%
Even though the numbers are larger the average negotiation off of the last list price of luxury homes is greater than the market in general. Given the median sales price of $1,290,000 the average negotiation on a luxury sale this past year was just over $68,000. Of course it is hard to generalize since each situation and home is different.
We have some wonderful listings coming up that are in the upper price ranges. I would love to share our comprehensive marketing plan with you if you have a home to sell.
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For the latest details on the Boulder area real estate market please view the attached presentation. As expected the market has slowed a bit due to the Holiday season. Despite the uncertainties associated with the economy there are still some great things happening in the Boulder real estate market. Did you know that there have been 32 sales that closed above $1.75 million? A pretty impressive number in a “down” market.
According to a recent study released by Federal Housing Finance Agency (FHFA.gov), Boulder County’s appreciation for the four quarters ending September 30, 2010 ranked 53rd best out of the largest 301 metropolitan areas. Boulders yearly appreciation for the year came in at .55%. For the most recent quarter (July 1 – Sept. 30) the home appreciation was measured at .98%. This quarterly appreciation ranked 117th best in the nation.
Many of the areas which have shown the highest volatility during the boom and subsequent bust are now back gaining ground. The top rated area in the nation for annual appreciation is currently held by Battle Creek Michigan. Over the past five years homes in Battle Creek have depreciated by 9.53%. This includes the most recent 1 year gain. Other bounce back areas include Merced California whose houses gained 1.78% over the past year but have lost an astounding 58.27% over the past five years.
While on the whole the losses in value are waning in severity, the nation as a whole lost 3.18% in home value. For the quarter the United States lost an additional 1.59%. During the past five years an average homeowner in the United States has lost 8.36%.
Some areas are still being hit hard by declining values. Over the past year homes in the Daytona Beach, FL area has lost 15.68% and Bend, OR has lost 13.73%. Over the past five years those areas have lost 33.84% and 24.35% respectively.
Compared to the some of these boom and bust areas the Boulder area has been quite stable. Over the past five years an average home in Boulder County has appreciated 3.92%. Certainly not up to our historical average but much better than a double digit loss. The first chart below shows the comparison of the home appreciation in Boulder to the United States as a whole. The second shows how Boulder’s appreciation has ranked nationally during that period.
To view the entire FHFA report go to http://www.fhfa.gov/webfiles/19578/3q2010finalHPI112410.pdf
Gratitude is the humble thanks for the blessings already received and the calm trust in the abundance of blessings yet to be revealed.
Broker/Owner
Kearney Realty Co.
303.818.4055