Economic Snapshot Boulder County - August 2013
The first sign summer is fading is the days get shorter. The shadows deepen. The nights grow longer. The settling in begins. From a real estate perspective, buyer activity decreases. The number of properties for sale declines. The settling in has begun.
Thus far 2013 has been an active year for the Boulder Valley real estate market. Sales of single family homes and attached units for Boulder County are up 11.16% through August compared to through August/2012.
As buyer and seller activity has increased across the real estate landscape, single family home values have shown marked improvement. It's the result of a simple economic principle — scarcity creates demand.
As a point of comparison, single family home values increased 2.89% when comparing Boulder Valley sales through August/2011 and August/2012.
The Absorption Rate for Boulder County single family homes is currently at 122 days, slightly over four months. 2012 ended the year with an Absorption Rate of 91 days. Over the course of the past twenty months (January 2012-August 2013) the Boulder Valley real estate market has evolved from a buyer's market to a seller's market and is beginning the process of trending back toward a more balanced market. In other words, potentially sanity will once again prevail.
There are still some thorns to deal with out there. Bank foreclosures and short sales continue to surface, mainly in the bedroom communities across eastern Boulder County and into Weld County. There are fewer these days than what we saw back in 2008-2011, but, like weeds, they are still there.
New home construction, especially production home builders, continues to be a viable part of the marketplace. Home mortgage interest rates appear to have settled around the mid 4% range for the traditional thirty-year fixed rate loan.