The graph below shows May sales data for single family homes in Boulder County. Sales were down again from year-to-year but not as much as the previous four months. Compared to last May sales were down 28%. For the year so far, total sales are down roughly 34%. Recent activity has picked up so future months should remain on a trend working toward volume recovery.
Spring is here and summer is just around the corner. Activity has definitely picked up but to me the market still rings a little hollow. There are some great listings out there that have yet to find a buyer. Some real head scratchers. The news lately has been hinting about an economic recovery in late 2009, 
the earlier the better as far as we are concerned. I think we are well positioned for recovery of our own but the national economic engine has to warm up before we will see it locally.
Combined sales during April were up 3.5% from March, but were down roughly 38% from April 2008. Much of the activity is in the lower ranges of each area but median prices are still resisting large statistical loses. There are specific homes which are selling for less than they did a year or two before so it will be interesting what the future holds. Will prices slide before the economic recovery takes hold? I think there is some risk of that in the higher price ranges. We’ll see, prediction is an activity rife with failure. Remember Y2k?
Here is what is happening right now.
I have included some under contract percentage statistics that compare May mid month data from 2007 and 2009. For single family homes, there is a smaller percentage of homes under contract in all areas but Longmont, Erie and Weld County. I don’t think that there is any coincidence that these are areas where good low priced deals can be found.
In general, condos and townhomes are faring much better than single family homes. Under contract percentage is up or equal in 7 of the 9 areas. Superior should the best improvement with an increase of 13%.
Single Family 2009 (2007)
· Louisville 29.5% (36.5%) of active homes are under contract
· Boulder 13.7% (29.6%)
· Superior 26.3% (28.4%)
· Lafayette 17.1% (23%)
· Boulder County 16.6% (19.6%)
· Longmont 23% (14.7%)
· Suburban Plains 12.3% (14.7%)
· Suburban Mountains 9.7% (11.2%)
· Erie 13.7% (10.9%)
· Weld County 18.1% (9.46%)
Condos 2009 (2007)
· Louisville 20% (30.6%)
· Boulder 21.7% (26.4%)
· Boulder County 20% (20.4%)
· Lafayette 28.9% (18.1%)
· Suburban Plains 18.6% (17.3%)
· Longmont 14.4% (10.3%)
· Weld County 9.4% (9.8%)
· Superior 16.6% (3%)
· Erie 7.6% (2.6%)
McStain Neighborhoods, a local Boulder area builder has filedchapter 11 bankruptcy. McStain has been building homes in the area since the 1960’s originally under Horizon Building Co. Tom and Caroline 
Hoyt, the companies founders have enjoyed a good reputation throughout the years and have built many good homes throughout the front range. I have sold many homes to happy buyers and I own a McStain townhome as a rental property. Their focus has been green building and sustainable neighborhood design.
The first sign of financial trouble came last summer when the company laid off about half of their staff and closed their offices. New home builders have been scaling back production during the last few years but obviously they need to have some volume in order to survive.
All of the recent buyers of McStain homes will be disappointed to find out that the company will not be servicing it’s warranties. This is a big advantage of buying a new home and when that confidence is shaken it is hard to get back.
McStain is currently building homes at the SW corner of Baseline Rd. and 95th Street under a separate LLC not affected by the bankruptcy. I wonder how that project will be affected by the bad press and the precedent of unfulfilled warranties? Their website is www.mcstain.com.
| # New | Price Drops | # U/C | # Sold | Median $ of Sold | |
| 30-Apr | 166 | 142 | 125 | 81 | $ 317,900 |
| 7-May | 182 | 170 | 141 | 90 | $ 294,700 |
| 14-May | 211 | 170 | 126 | 46 | $ 301,950 |
| 21-May | 220 | 169 | 140 | 92 | $ 275,950 |
| 28-May | 167 | 165 | 137 | 66 | $ 272,450 |
Wow! The weeks are flying by and it is already Thursday again. I wasn’t sure what to expect over a busy Memorial Day weekend, but the activity in the market stayed strong. Not as many new listings hit the market, but the number of homes that went under contract stayed in a strong range. This upcoming week we should see another spike in the number of closings since it is the end of the month.
Most of the news reports regarding the economy I have seen lately have a bit more of a positive spin to them. Most economists are expecting a recovery in late 2009 instead of 2010. This is good news.
| # New | Price Drops | # U/C | # Sold | Median $ of Sold | |
| 30-Apr | 166 | 142 | 125 | 81 | $ 317,900 |
| 7-May | 182 | 170 | 141 | 90 | $ 294,700 |
| 14-May | 211 | 170 | 126 | 46 | $ 301,950 |
| 21-May | 220 | 169 | 140 | 92 | $ 275,950 |
It was another busy week in Boulder area real estate. Contracts were strong and another 92 closings occurred. The median prices continued to favor the lower end of the market. The median price for sold listings was $275,950 and the median list price of homes which went under contract during the week was $285,000. For comparison, the median price for all residential closings during 2008 in Boulder County was $301,000.
Broker/Owner
Kearney Realty Co.
303.818.4055