by Neil Kearney | Apr 1, 2010 | Uncategorized
I had the opportunity to walk through 772 Circle Drive yesterday with the architect, Sam Austin. Our company has the house listed and the new build is just getting to a point where a potential buyer can envision the finished product. And what an amazing house it is! I will write more on it later once I get a chance to take more photos. I have begun working on the website which I hope will convey what a work of art this house is. The house is special on so many levels and it better be as the list price is $5,900,000.
One thought I had, as I tried to soak in all of the details was the valuation of such a house. Specifically, I was wondering if an appraiser would monetarily appreciate all of the amazing upgrades in this house. The utility closet was over 250 square feet and included geothermal (radiant) heating and cooling with a high efficiency gas backup, solar electric, fire suppression etc. The house, which is at the base of Flagstaff Mountain, is built to last with over 30 piers reaching down to bedrock, the structural concrete floors are extra thick, the foam insulation is tight to a point that the efficiency tester when doing a air test commented that “the only improvement that can be done would be to remove the windows”. On first glance none of these features are readily apparent.
Green building is really gaining traction. Whether it is a modest solar project or a $5,900,000 home, banks need to start valuing the future benefits that green building provide. Not only for cost savings, but for improved re-sale value. It’s not cheap to put in a geothermal system that reaches 200 feet below the house and provides heating a cooling for the cost of running a small pump. So why would the system not provide more value than an 80% efficient furnace blowing through ducts? We are on the front end of this and I believe it will get better. But with everything, if it doesn’t make sense financially, in the long run only the die hard tree huggers will spend money on principle.
I’m excited to tell you more about this magnificent house in the coming weeks.
by Neil Kearney | Mar 17, 2010 | Boulder County Housing Trends, Statistics
It’s March and for me that means: March Madness, the beginning daylight savings time, improving weather and the beginning of the spring real estate season. Two of the above can be set to a positive date in advance. The other two are a bit nebulous. The weather is improving and beginning March 1st it felt like a good idea to be spending more time outside. This is of course subject to change.
The spring real estate season. Now that is a moving target. Last year it didn’t start until May. This year it started heating up in February. Through the years I have learned to swim on top of the waves rather than try to stop them. My thought is that you work hard in all seasons, knowing that some will yield more fruit than others.
This year we have the tax credit expiring at the end of April which has brought an interesting dynamic to the market. First time buyers are out in droves. But is the rally limited to properties in the entry-level? The chart below shows the percentage of homes which are under contract across different price ranges. The properties represented are both single family and attached homes in Boulder County.
http://viewer.docstoc.com/
Under Contract % Boulder County –
The kelly green bars (it is St. Patricks Day) show the data as of today. Comparing today’s market to a number of dates last year we are looking good. Improvement in almost every price range is the rule. On average 15% of properties are under contract. The range is from 6% for properties priced over $1,750,000 to 28% for properties priced less than $250,000. While there is not as much activity in the upper price ranges, better activity is being seen across all price ranges.
by Neil Kearney | Mar 8, 2010 | Boulder County Housing Trends, Statistics |
The slideshow above highlights the monthly statistics and market trends for residential real estate in Boulder County. Slides include: total sales, median price, under contract percentage and weekly activity. For best viewing choose the full screen option near the bottom of the first slide.
by Neil Kearney | Mar 4, 2010 | Boulder County Housing Trends, Statistics |
So far, it has been an interesting year in the Boulder area real estate market. It feels very different than a year ago, for the better. More activity, more showings, more calls, more plans, more positive expectations… However, after looking at two months of data we are just a touch ahead of last year in terms of properties closed.
Here is what I think is going on. We are busy setting the foundation for a surge that will correspond with the expiration of the homebuyer tax credit. We are already seeing its effects but as the deadline draws near buyers will stop shopping and start buying. This should happen by the end of March. If you don’t recall the basics of the tax credit see my previous post on that subject. Even if you have already filed your 2009 taxes you can do an amended return and see that money this year!
Here is a chart showing the activity in the local market on a weekly basis. You will notice that there was a surge in closings this past week. This is fairly normal at the end of each month.
