Boulder Region Housing News April 2013

Posted by Greg Smith on Tuesday, April 9th, 2013 at 8:32pm.

Boulder Valley Economic Snapshot 

Boulder Region Housing News April 2013

One of the issues the area real estate market faced as the year began was available inventory of homes for sale across the Boulder Valley. 2012 ended with 814 single family active listings in Boulder County. That was down 27% from the end of 2011 (1121 active single family listings).

The decline in inventory was driven by sales activity. When comparing 2012 to 2011, single family home sales were up 24.44% (3258 vs. 2618) for Boulder County. Attached unit sales were up 20.80% (1144 vs. 947) for the same time periods. Collectively, those two market segments were up 23.47%.

Through March/2013 the Boulder County real estate market continues to sustain itself. Single family home sales are up 14.61% compared to through March/2012 (604 vs. 527). Attached unit sales are up 20.41% for the same time periods (230 vs. 191).

Below are some sold numbers for single-family homes for various geographic areas throughout the Boulder Valley. Information is courtesy of IRES (the Northern Colorado MLS).

                                                            2012 Sales               2013 Sales

                                                          1st Quarter               1st Quarter          

                         Area                        Single Family           Single Family        % Change

              Boulder                                          38                            143                   +3.62%        

              Erie                                               50                             70                    +40.0%

              Superior                                        19                              23                  +21.05%                  

              Louisville                                       28                              30                    +7.14%

              Lafayette                                       43                              51                   +18.60%      

              Longmont                                     172                           235                   +36.62%      

              Suburban Plains                             89                             96                    +7.86%

              Suburban Mountains                       34                             42                   +23.52%      

                                                               =======                  =======            =======

                          TOTAL                           573                           690                   +20.41%

             This is the scenario that currently exists across the Boulder Valley, Metro Denver, and Northern Colorado – fewer listings and more sales. Combined with low mortgage interest rates the result is a perfect storm, if you’re a seller.

            Normally, scarcity creates demand, which in turn adds value to whatever is in short supply. Looking at the areas noted above and average sales value; here is what has happened to the average sales value for single family homes when comparing end-of-year 2012 to through March/2013: Boulder (+2.62%): Louisville (+1.56%); Lafayette (+12.61%); Longmont (+9.66%); Superior (+.96%); Erie (+9.50%); Suburban Plains (+5.45%); and Suburban Mountains (+3.40%). Collectively, these market areas are +5.14%.

            Look for the Boulder Valley spring real estate market to continue to flourish. Available inventory will creep-up, but will continue to be swept-up by prospective buyers waiting in the wings. Mortgage interest rates have trickled-up over the past few weeks, but there are no signs on the horizon they will shift noticeably either up or down for the balance of 2013. 

Greg Smith

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