Boulder Real Estate

Boulder Real Estate: Are we there yet?  If you've ever traveled with children, you've probably heard the "Are we there yet?" question more than once.  It's their sense of anticipation and lack of patience that tends to make them ask it over and over . . . and over.  A lot of home buyers in Boulder Valley seem to be asking a similar question these days, albeit in a slightly different way.  Their underlying question boils down to this: Is it the right time to buy a home in the Boulder real estate market?  For a lot of reasons, we think the short answer is, "Yes".  Let's look at some residential re-sale statistics from IRES for the City of Boulder over the last 12 months.  The first chart reflects the median price of a sold listing and of homes listed for sale; the second reflects the number of units over the same time period:

We have to remember that these are broad residential re-sale statistics and that results can vary if we break these numbers down by price range, but what these overall 2010 results reflect is that Boulder home prices have increased slightly over the past year, with the median price of a sold listing up about 2.5% to $549,450 in December.  It's also very interesting that the median price of active listings has decreased by almost 5% over the year, as sellers have tempered their asking prices.  So if median sale prices are up and asking prices are down, are buyers and sellers in Boulder getting closer together?  The data suggests that they may be - and that's a good sign.

In addition, the number of units sold over the period was up about 10%, but the number of units for sale - or the inventory number - increased by 29%.  It's easy to spot the seasonality that is built into our local market here in Boulder, but the increase in the number of Boulder homes for sale also contributed to the modest decrease in overall list prices.

In general, home prices tend to be a lagging indicator, meaning that they tend to react after sales volume - both up and down.  When we see increases in both prices and the number of homes sold (volume), it can be an indicator that it's a good time to buy.  When you couple this with the historically low interest rates we have right now, the indication becomes even stronger.

If you're considering buying or selling a Boulder home, contact us and we'll be glad to dig a little deeper into specific area(s) and price range(s) that you're most interested in and come up with a plan that is right for you.  Feel free to browse the Boulder MLS and read more about Boulder, CO at www.BoulderHomeResource.com.

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!

The Boulder, CO real estate market was cited as the "strongest real estate market in the country" late last year and we've seen some positive signs so far this year.  Looking at the overall residential re-sale stats over the past 6 months and comparing the previous 12 weeks to the last 12 weeks, inventory is up about 9% and the median price of a sold listing is down about 3%.  Not bad, especially when you factor in that the average number of units under contract is up 94% and the percentage of inventory under contract is up some 79%.  I wish we could stop there and just push the easy button, but that's not the total picture.

It's a little optimistic to compare the stats in Boulder at the end of winter to those during the beginning of spring, but even factoring that in we're not doing too bad.  However, these stats are across all price ranges and include single-family homes as well as Boulder condos and townhomes.  In order to get a more accurate market update, I thought we should probably separate the two and look at the attached (condo) market vs. the detached (single-family) market in Boulder.  We've seen some significant disparity in the market based on price point, and this will also take that into account.

The first-time homebuyer tax credit has had some effect on these results, as people buying a Boulder home have tended to gravitate toward the lower-priced homes lately.  Given that, one would expect that separating the two market segments would result in the lower-priced attached market faring better than the higher-priced single-family market in Boulder.  Based on the following data from IRES as of April 17, 2010, that is in fact what we've seen.  First, let's look at the Boulder condo market:

Comparing the previous 12 weeks with the last 12 weeks, the median price of a sold condo or townhome in Boulder has increased 26% from $215,504 to $272,094.  There was a spike around February that influences that increase to some degree, but the overall price trend in this market segment is impressive.  Now let's look at inventory and under-contract (absorption) results over the same time period:

Despite a significant increase in supply (+22%), this market segment has seen healthy increases in the numbers and percentage of inventory under contract, up 154% and 112%, respectively.  Even accounting for the seasonality involved, it's clear that this market segment has a dramatic influence on the Boulder real estate market's performance over the past 6 months.

So, if the Boulder condo market is doing so well, how's the residential (detached) market faring?  Not as well.  The median price of a sold listing has declined somewhat over the period (down 6%), from $538,250 to $505,354.

Looking at the following chart, we can see that supply (inventory) has remained consistent (up 1%) over the period, while the absorption figures reflect increases of 64% and 60%, respectively.

Although we see a dramatic spike at the very end (most recent) end of the spectrum, Boulder homes are selling, albeit at what appears to be slightly lower prices.  Part of this observation may be attributable to the fact that lower-priced homes are selling better than the upper end, so the apparent "decline" in prices may be slightly overstated.

The Boulder real estate market still appears to be faring better than many markets ocross the country.  Going into what is typically our most active home-buying season, there is reason for continued optimism.  If the federal tax credit expires at the end of this month as NAR is telling us that it will, that may shift some of these numbers a bit going forward.

Boulder's a great place to live, work and play.  The quality of life here is outstanding and we have more sunny days that San Diego!  If you're interested in the Boulder real estate market, we would love to hear from you!  If you're considering relocating to Boulder, CO, we offer free relocation resources and a free, exclusive relocation video entitled "Welcome to Boulder Valley" that you can access here. 

Boulder real estate - is it a good time to buy or should you wait?  According to IRES, there are 638 single-family homes on the market today in the City of Boulder, 94 (about 15%) of which are under contract.  That leaves 544 Boulder homes for sale, and buyers are asking whether it's a good time to buy a Boulder home?

There are so many distractions in the current real estate market that it can be hard to see the forest for the trees.  It's easy and maybe even popular to pick the negativity "flavor of the day" and extrapolate that into a news story that the real-estate sky is falling.  It's sensational and somehow news-worthy that " . . . home prices fell last month by x%, the biggest drop since . . . the month before."  It's much more challenging to look past the momentary blip(s) and the sensationalism, and evaluate the real estate market on a more long-term basis.

Buying a home used to involve at least medium-term commitment; most buyers bought homes to live in, and viewed them as their home, not as short-term fix-n-flips, investments, and cash-out refi piggy banks.  This shift in the way homes are sometimes viewed today, coupled with the challenges we've faced in the real estate market in the last few years, has caused some buyers to overlook the long-term benefits of owning a home.

Real estate is, by its nature, an illiquid asset.  It's not a stock or a bond that should be bought and sold in the open market on a daily - or even hourly basis.  On a short-term basis, owning a home can easily be viewed as a losing proposition, not because it's a bad investment per se, but because viewing it on a short-term basis is generally inconsistent with the nature of owning a home.  However, when viewed on a more long-term basis, home ownership has delivered positive results.

Here are some compelling home-price figures for the City of Boulder from Zillow.com.  The following chart represents the Zillow Home Value Index for Boulder, CO single-family homes over the past 5 years, broken down by area - North Boulder, Central Boulder and South Boulder:

While it's interesting that Central Boulder has the highest price, followed by North Boulder then South Boulder, the most critical things to focus on from this data are the long-term trend line(s)!!  If you look at the price index month-over-month or even quarter-over-quarter . . . you see some declines.  Boulder home buyers: Please look at the year-over-year results, then look at the 5-year trend line(s) - all positive.

Buying a Boulder home should be viewed in the context of a long-term investment.  When you consider the current federal tax incentives for home buyers, historically-low mortgage interest rates, and the long-term benefits of owning a home, the decision of whether to buy or wait becomes much clearer.  There's an old saying in real estate: "Don't wait to buy . . . buy and wait."  Waiting is not without its risks; not only are you taking the risk of trying to time the market, but you're also taking an interest-rate risk.  If you plan on staying in your new home for a while - and you should - the interest-rate risk is significant.

The principle demonstrated here not only applies to Boulder real estate, but Boulder Valley homes for sale in Longmont, Niwot, Lafayette, Louisville, and many other places.  If you have questions or would like more information about Boulder real estate, please feel free to call 303-441-5647 or contact us online.