Economic Snapshot Boulder County - September 2013

Posted by Greg Smith on Monday, October 21st, 2013 at 9:28am.

Economics seem to rule the roost these days. As such, there always appears to be some degree of drama attached to them. Economics are the core issue when it comes to mortgage interest rates fluctuating up and down, the stock market typifying a roller coaster or the government shutting down because the political parties can’t agree on what to do.

Buying and selling real estate is an economic decision. If a seller decides to sell their home, what is the economic impact to them? What are the economic options left if they do sell? For a buyer, deciding what to buy is based to a great degree on their economic situation. How much can they afford? What is the economic bearing on their financial state?

The 2013 Boulder Valley housing market has been a year characterized by economics. On average, home values have increased across the area in most price ranges. Mortgage interest rates have vacillated between 3.5% and 4.5%, still residing at near historic levels. Buyers have outnumbered sellers, with available resale inventory struggling to keep pace with demand and new home construction continuing to be a viable part of the overall market. The economic scene across the Boulder Valley has shifted noticeably over the past nearly two years from the previous seven years when bank foreclosures and short sales, and depreciating property values were more the norm.  

Below is a brief overview of the activity level for single family homes in a number of the Boulder Valley areas through September/2013, courtesy of IRES, the Northern Colorado MLS. 

                    Area                     Active Listings            Solds Y.T.D.         Absorption Rate
              Boulder County                  1118                            2766                      110 Days                       
              Larimer County                  1999                            4331                      126 Days                     
              Weld County                     1414                            3148                      122 Days
                            
              Boulder                             351                              844                        113 Days
              Erie                                  113                              315                          98 Days
              Lafayette                           75                                257                         80 Days
              Longmont                          370                              1028                        98 Days         
              Louisville                           43                                183                          64 Days
              Suburban Mountains           270                              246                        299 Days                  
              Suburban Plains                 239                              464                        140 Days
              Superior                             31                               114                          74 Days
                                                     =======                    =======                  =========
             Community Totals:          1492                             3451                      118 Days     
 

The Absorption Rate is the length of time it would take for the existing inventory to sell assuming the same rate of sales activity and no new inventory coming on the market.

In September/2012, Community Totals were 1774 (active listings), 3038 (sold listings) and 160 days (absorption rate). The Boulder Valley market has experienced a 16% decrease in active listings, 13.5% increase in sold listings, and 24% decrease in the Absorption Rate year over year.

Look for the balance of 2013 and moving into 2014 to mirror what is happening now in the local housing market. Mortgage interest rates should reside in the 4%+ range, home sales and available inventory will normally trend down as fall turns to winter.

BoulderHomeSource ...It's A Lifestyle

Greg Smith

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