Boulder County, Weekly Activity Index

by neil kearney | May 7, 2009 | Boulder County Housing Trends, Statistics

It was a busy week in the real estate market in Boulder County.  Traditionally, the month of May is one of our busiest times and this year is no exception.  We are seeing much activity in the market and have heard to many situations where multiple offers were received on a property.  The lower end of the market is getting most of the activity and the median price of the homes that are selling continues to be lower than it has been at any time over the past few years.

I’m encouraged by the number of homes that went under contract during the past week and the number of properties that sold continues to pick up steam.  There are still plenty of choices out there and 170 homes decided to re-adjust their prices.  It is true that the best time to be well priced is when there is the most activity in the market, so now is the time to get it priced correctly.

Boulder, Colorado – Weekly Activity Index

by neil kearney | Apr 30, 2009 | Boulder County Housing Trends, Statistics

Every morning I print out a report which details the activity which happened in the market during the past 24 hours.  I see the new listings, those that have had price reductions, those that went under contract and the properties that closed.  This information helps me keep my finger on the pulse of the market.  Not only is it helpful to keep track of specific properties and prices, I find it is a good indicator to have a gauge on the number of houses in each category.

For example, I like to look at how many homes go under contract each day.  This gives me a general idea of the market activity.  I also find it interesting to look at the number of price reductions which is an indication of homes sitting on the market for longer than the sellers would have hoped.  I also like to look at the properties that closed and look at not only how many but what prices are most prevalent and how much negotiation got the deal done.

Since I find this valuable I thought you might find this type of information useful as well.  Daily might get a little tedious so starting today I will present the weekly activity index on Thursdays.  As I collect more data we can do more with it.  Today starts the baseline.  Please give your feedback on what might be interesting to see from your perspective.  You can comment below.

What stands out to me this week is the median price of the sold properties.  A median price of $317,900 tells me that the strength in the market is still in the lower end.

This index uses all properties in Boulder, Louisville, Lafayette, Longmont, the Suburban Plains, the Suburban Mountains and Superior.  Let’s see what it looks like next week.

Boulder Sales – The Breakdown

by neil kearney | Apr 20, 2009 | Boulder County Housing Trends, Statistics

Recent headlines have stated that sales for the first quarter in Boulder fell 50%.  It is true, numbers don’t lie, but the headline was vague.  I’d like to clarify this information a bit, by breaking down the first quarter statistics in Boulder, Colorado into more manageable chunks.

The tables below show first quarter data for closed sales in the City of Boulder.  The yellow box shows all sales within the city, both condos and single family homes.  The green box shows single family home sales and the blue box shows condo sales.  Combined sales were down 35%, single family sales were down 50% and condo sales were down just 15%.

What this information brings to light is the strength in the lower price ranges.  Sales of condos below $500,000 (which includes 85% of all sales) was down just 13% and sales of single family homes in the same range were down 44%.  I thought this breakdown was interesting, I hope you agree.  Leave a comment if there is a segment of the market you would like shown in detail.

The Grand Staircase of Boulder Real Estate

by neil kearney | Apr 13, 2009 | Boulder County Housing Trends, Statistics

Grand Escalante National Monument is a place in Southern Utah where all of the different layers of rock are exposed for all of those brave enough to go have a look.  I for one love an adventure, and take any chance I can get to spend some time in that beautiful region.  Since I cannot take the trip right now I thought I would do a little back country adventuring into the layers of Boulder real estate.Desert Mesa at Sunset – March 2004

As I mentioned last week, the market for real estate priced below $500,000 in Boulder is actually quite healthy.  It is the market over $1 million that is feeling the burn right about now.  In order to throw a bit more light on the differences between the price ranges, I thought a comparison of under contract percentage and absorbtion rate would help clear up any question on where the strength in the market is right now.

The following statistics were taken from the IRES MLS system and reflect houses that use Boulder as a mailing city.

Under Contract Ratio:

Absorption Rate (Inventory):  using the sales rate over the past 6 months

Let’s first look at the under contract ratio.  This simply shows the activity in the market right now.  It compares the number of properties on the market with the number of those properties that have a contract on them.  According to Fannie Mae 15% is the lower end of a normal market.  This means that all homes in Boulder below $1 million are part of a normal market.  Sales are down and the number of homes on the market are down so this year’s normal market is not so robust as past years normal markets.  Right now there are too few buyers for the homes listed above $1 million.  Fewer than 7% of the homes in that range are under contract.  Competition is feirce and if a seller is smart they need to price their home very well in order to get it sold.

The absorption rate has been rising over the past few months.  This is in direct correlation to fewer sales.  I usually use a 12 month average but today I thought it was more accurate to use the past six months of sales data to illustrate the point.  Given the monthly sales rate over the past six months it would take 11 months to sell all of the homes in the strongest price range and 68 months (5.5 years) to sell all of the homes currently on the market listed over $1.5 million.  As the spring sales begin to kick in these number will fall but they are still very high.  Another indication that we are over supplied in the upper end of our market.  If you are curious the absorption rate using 12 month sales data, the numbers are lower but the idea is the same.  Here are the conservative numbers:

6.2 months; 11.5 months; 21.9 months; and 51.5 months (same categories and order as above.

Boulder County – March Sales Statistics

by neil kearney | Apr 6, 2009 | Boulder County Housing Trends, Statistics

The calendar has turned once again and the March sales statistics are now available for Boulder Colorado and the surrounding area.  The numbers for the month are not impressive but I will try to bring a bit a insight to the situation.

• Sales of single family homes were down 42% for the month and down 35% YTD.
• Inventory is down substantially as well.  Down to levels we have not seen since the early 2000’s.
• Median prices on a month-to-month comparison are down a bit as well.  This decrease is due to the nature of the sales we are having.  The lower end of the market (below $250,000 in Longmont, below $500,000 in Boulder, and below $400,000 in Louisville, Lafayette and Superior) is where the activity is happening.  There are very few sales above $1 million.

The market is slower than normal for this time of year but as I mentioned above there are segments in the market where there is ample activity.  If you have a high priced home the reality is that the market price is most likely below where you thought you could sell it a few years back.  Homes that are offering true value are the only one’s that are selling in the higher price ranges.

Here are some graphs that show the long term trends.

If you are curious where your home falls in today’s market please give me a call or send me an email.