As is customary for this time of the year, the Boulder Valley real estate market has begun to settle-in for the fall and winter. Active listings continue to decline with the September/2012 inventory of single family homes being down 6% when compared to August/2012 for Boulder County. If that trend continues, active single family home listings for Boulder County at the close of 2012 will be approximately 1,137 (2011 ended with 1,121 active single family home listings).
Through September/2012 single family home sales for Boulder County are UP 22.87% when compared to September/2011 (2,519 vs. 2,050); attached unit sales are UP 23.24% (896 vs. 727); the market is UP 22.97%. For September/2012, the market was UP 14.69% when compared to September/2011.
Below is a brief overview of the activity level for single family homes in a number of the Boulder Valley areas through September/2012, courtesy of IRES, the Northern Colorado MLS.
Area Active Listings Solds Y.T.D. Absorption Rate
Boulder 498 806 169 Days
Erie 109 237 126 Days
Lafayette 98 233 115 Days
Longmont 412 874 129 Days
Louisville 56 186 129 Days
Suburban Mountains 243 164 405 Days
Suburban Plains 321 410 214 Days
Superior 37 128 79 Days
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Community Totals: 1774 3038 160 Days
The Absorption Rate is essentially the length of time it would take for the market to absorb itself, assuming no new inventory enters the market and the rate of sales activity remains the same. Absorption Rates improve as the year progresses. Inventory levels rise and sales activity increases.
The Absorption Rate at the end of September/2012 was 149 days for Boulder County. 2011 ended the year with an Absorption Rate of 156 days; at the end of 2010 it was 189 days. Which means? Homes are selling slightly quicker these days than they did last year and at least a month faster than in 2010.
As the Presidential election heats-up and the holidays surface look for the Boulder Valley housing market to take a back seat. There will continue to be buyers contracting and closing on homes, and sellers wanting to sell, but the bulk of the sales activity is now in the rear view mirror.
Mortgage interest rates remain at historic lows and banks/mortgage companies are willing to lend to qualified buyers. Home values have stabilized in most price ranges across the Boulder Valley, with entry level homes showing the most improvement. This being driven, to some degree, by production builders once again being a viable part of the housing market. Bank foreclosures and short sales are getting less media coverage these days, but they are still an important aspect of the market.
*This Months Market Update From Dan Johnson