Economic Snapshot - June 2013
Over the course of the past eighteen months the Boulder Valley real estate market can be characterized as one of demand exceeding supply. Spawned by low mortgage interest rates and improved economic conditions, the Boulder Valley real estate market has flourished. The direct result of that is an increase in home values. All geographic segments of the marketplace have benefitted, with the core area of Boulder and those outlying areas closest to Boulder showing the most improvement.
Below is a brief overview of the housing market in our area by locale for single family homes from IRES (the Northern Colorado MLS).
2012 (Thru June) 2013 (Thru June)
Area Average Sales Price Average Sales Price % Change
Boulder $666,232 $749,116 +12.44%
Superior $410,166 $469,584 +14.48%
Louisville $421,352 $504,165 +19.65%
Lafayette $399,302 $423,943 +6.17%
Longmont $255,818 $280,923 +9.81%
Suburban Plains $546,327 $571,726 +4.64%
Suburban Mountains $394,289 $427,505 +8.42%
Broomfield $357,499 $391,432 +9.49%
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Average … $442,418 $476,568 +7.71%
As the economy has shown signs of stabilization, home mortgage interest rates have trended up slightly over the past sixty days. The traditional thirty-year fixed rate loan that could be had for under 4%, now resides closer to 4.5%. All indications are that mortgage rates will continue to hover around that mark for the foreseeable future.
Sales activity for single family homes and attached units across Boulder County continues to outpace 2012 numbers through June of each year. Single family home sales are up 6.43%; attached unit sales are up 15.23%; and the cumulative market is up 8.71%. The Absorption Rate for single family homes across Boulder County is at 144 days through June/2013. That number was 182 days in June/2012. The inventory level of available single family homes in Boulder County crept up 5.20% in June/2013 vs. May/2013 (1,355 vs. 1,288).
Faced with the dog days of summer, the Boulder Valley real estate market is experiencing continued improvement in sales activity over 2012, an increase in home values, an upturn in home mortgage interest rates, and fewer days on the market. With the possible exception of the somewhat higher mortgage interest rates, the Boulder Valley real estate market is healthy. Look for another upward push in sales activity before we drift into fall, when buyers and sellers typically begin the process of settling in for the start of the school year and the holiday season. This year may be a little different with continued pent up demand potentially fostering a more dynamic fall selling season.