The market continued its strength in August in Boulder County. Sales of all residential properties were up by 15% during August (compared to same month last year). Year-to-date sales are up over 25% compared to last year. One of the biggest trends in the market right now is lack of inventory. The number of homes on the market in Boulder County is down 16% from the same time last year(see chart below) and the number of homes that are under contract are up 24% from last year. Both of these factors add up to a scarcity of listings and a strong market for those homes that are out there and well priced. Buyers are still hesitant to overpay for a seller who is not in tune with the market.
The slide presentation below gives a good overview of what has been happening in the Boulder County real estate market over the past four years. We have definitely turned a corner.
July was another good month in the local real estate market. Sales were up 27% during July compared to the same month last year. Year-to-date, total sales in Boulder County are up 25% as compared to last year. Activity is still strong in the market. The graph below shows a comparison of homes going under contract on a weekly basis over the past three years. It is clear that there has been consistently strong activity on a consistent basis throughout the year.
“Our market will recover very quickly once buyers again decide to start buying again.”
“Affordability of homes, which is a function of prices and interest rates, is at levels we haven’t seen for decades. This area is poised for recovery and when it does improve, prices will increase.”
“Cautious Optimism – As we move toward recovery the number of listings is still low. Buyers are finding it hard to find the right home and there are more multiple offer situations. The market is not yet recovered but we are heading in that direction. Confidence in the market is key and if you are looking at the local real estate market your optimism should be rising.”
These three quotes were written by me six months ago. At that time the signs were in place for a good year ahead but after 3 years of a lackluster market it was hard to blow the trumpet too hard. After the first six months of 2012 it is clear that the market has gone through a major shift. We have broken a cycle. To read more about what the market has done over the past six months view the slideshow below.
