Boulder Real Estate: May 2010

Boulder Real Estate: Boulder, CO just landed on another "Top Ten" list!  No real surprise to those of us lucky enough to call the Boulder area home, the latest recognition is well-deserved.  Previously in the Top Ten places to retire, the No. 1 real estate market in the country, one of the country's "Happiest and Healthiest" cities, the list goes on.  Kiplinger Personal Finance Magazine just released their list of the Top Ten Best Cities For The Next Decade, which was based on their research into cities across the country with growth, and growth potential.

This latest recognition dovetails right into many of the previous "Top Ten" and "Best of" lists on which Boulder has landed, and highlights the area's tremendous potential for jobs, lifestyle, real estate, and more.  Here are the top 5 cities on Kiplinger's list:

1. Austin, TX
2. Seattle, WA
3. Washington, D.C.
4. Boulder, CO
5. Salt Lake City, UT

Boulder was cited for familiar things like climate (more sunny days/year than San Diego!), lifestyle, etc., but the area's job picture clearly played a major role in Kiplinger's selection.  You can read the entire Kiplinger article using this link, and watch a video about Boulder's selection using this link.  If you've been considering a move to Boulder, CO or investing in Boulder real estate, give us a call or visit us online at BoulderHomeResource.com.  Boulder's a great place to live and play!

Boulder, CO pending home sales: What is the Pending Home Sales Index (PHSI), and what does it mean?  Looking at historical home-sales statistics gives us some market trending perspective, but a forward-looking indicator, like the PHSI, gives us a good way to gauge what's ahead in the real estate market.  Also known as a "leading" indicator, we can often spot emerging trends with this index.

Each month the National Association of Realtors (NAR), publishes their PHSI, which gives ratings based on a historical baseline going back to 1991.  On a national basis the PHSI was up about 5% in March 2010 vs. February.  Even more impressive is the fact that it was up year over year in March by about 21%.  Great.  What about something a little closer to home here in Boulder, CO?

In the Western Region (which is as local as NAR gets with their index), the numbers actually stack up a little differently.  Looking at the data, it looks like the index peaked last Fall when the previous federal tax credit for 1st-time home buyers was set to expire.  Since then, the regional index has flattened out a bit - although we were up 8.8% in March, year over year.  Not bad, but nowhere near the national increase of about 21%.  The region where the recent PHSI has jumped pretty dramatically was in the South, where March 2010 reflected 121.2, the highest index for that region since 2007.

Using NAR's seasonally-adjusted figures for the Wester Region, it looks as though the federal tax credit played a declining roll in the PHSI as we moved from the end of 2009 through March of this year.  In the Boulder real etate market, we have seen the lower-end price ranges make up a significant portion of the overall sales during this time period.  Using IRES data through May 4, 2010, the Boulder market segment with the lowest inventory level was homes up to $250K, with 7.5 months.  Upper-end price ranges - say above $1.5M - have largely been ignored by Boulder buyers lately, resulting in the highest inventory level in our market, of 39.4 months.  Probably temporary, but also influenced by the relatively shallow secondary market for jumbo loans.  That, too, is starting to change for the better.

Now that the federal tax credit opportunity expired on April 30th, what does this data mean for our regional and local real estate markets?  On a regional level, we're likely to be less affected by the expiration, as the PHSI numbers hav leveled off from the peak.  Locally, it remains to be seen how the numbers will shake out, but if the month of April is any indicator, things are definitely looking up!  RE/MAX of Boulder put a record number of properties under contract in the month of April!

Home mortgage rates are still at attractive levels, but have ticked up slightly.  Rising interest rates continue to be a much more important factor thatn the temporary federal tax credit, making the timing of your decision about buying a Boulder home an important one.

If you're interested in the Boulder real estate market and would like more information about a particular property or Boulder neighborhood, feel free to contact us.

Boulder County homes for sale: The 2010 Boulder real estate market has really been a mixed bag so far - based on IRES sales data as of 5/04/10, single-family re-sale home prices are up in some areas of Boulder County, down in others; inventory reflects balance in some areas (6 to 12 months), imbalance in others (over 12 months).  It's difficult to characterize the "market" without breaking it down by price range.  In our market right now, price point plays a big role in performance.  The short answer for those buying or selling Boulder homes is that it really depends on what price range your home is in.

The federal tax credit for home buyers expired on 4/30, but it had some influence on the Boulder real estate market.  Boulder home buyers have tended to gravitate towards the lower end of the price range while seeking this credit, skewing the overall results a bit.  For example, the months' supply of inventory (absorption) in Boulder County in the price range up to $250K, reflects the lowest level of 7.5 months; the highest level of 39.4 months is in the market segment above $1.5M.

Overall, Boulder-area median home prices are down slightly over the last 6 months but again, it varies significantly depending on the price range.

The two above charts are good examples of how Boulder County home-sale results (Boulder and Longmont, specifically), really do depend on location; the top chart is the median price of a sold listing in the City of Boulder residential re-sale market over the past 6 months, and the bottom chart is Longmont real estate.  Boulder is actually down about 4%, while Longmont is up about 2%.  What's interesting is that Longmont has seen the vast majority of foreclosures in Boulder County recently.

In terms of overall year-over-year sales volume in Boulder County, up to about $800K the number of sales is actually up in the 1st quarter of 2010 vs. 2009; over that break-point, we're seeing flat to declining sales volume.  The "sweet spot" (if there is such a thing), seems to be in the $400K to $800K price range, where year-over-year sales volume is up an impressive 64% (200 vs. 122).

We specialize in Boulder Valley real estate and helping people relocate to our area.  If you're interested in Boulder real estate, are thinking about buying a Boulder home or about moving to Boulder, CO, we'd be happy to help.  Feel free to call 303-441-5647 or contact us online.