March home sales signaled a robust and active home buying season ahead for Boulder County.
“The Boulder-area market rocketed forward in March with strong sales that improved significantly,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.
Following modest positive movement in February, housing surged forward in March, according to March sales statistics. Boulder Valley buyers showed up strong, undeterred by a market pattern of low inventory and rising prices. This pattern has characterized the countywide housing market for several years running.
Single-family home sales in the Boulder-area jumped 43.3 percent in March compared to February 2018 – 344 units sold vs. 240. Condominium and townhome sales also rose, marking 28.4 percent growth month-over-month with 122 units sold vs. 95.
Year-to-date, single-family home sales increased 8.7 percent through March 2018, with 829 Boulder-area homes sold vs. 763. Sales of condominiums and townhomes increased 1.6 percent year-to-date with 312 units sold compared to 307 for the same period in 2017.
Inventory also improved, though modestly. The number of single-family homes for sale grew by 10 percent – 651 units compared to 592 – while townhome and condo inventory grew 5.3 percent – 140 units vs. 133 – month-over-month.
“The inventory level is about a two-month supply of single-family homes and a one-month supply of condominiums and townhomes. A healthy market is thought of as a five- to six-month inventory supply,” says Hotard.
Nationally 40 percent of housing sales occur during March, April, May and June.
Hotard says the consistent buying activity we see in our housing market speaks volumes for the desirability of the area and health of the market.
“It’s a strong, positive market for sellers. We need a significant amount of new product in the market to meet the demand, particularly the demand for housing suited for young people and a broad demographic of ages and incomes.”
‘Home for Sale’ signs are popping up like spring tulips in Boulder County, showing early indications the selling season is likely to emerge strong this year.
Those early positive signs are supported by February’s Boulder Area Realtor® Association sales stats that mark improvement in inventory and sales for single-family and attached dwellings.
“February showed good recovery in sales and inventory from last month’s slow start to the year,” says Ken Hotard, vice president of public affairs for the Boulder Area Realtor® Association. “It sets buyers and sellers up well going into the top home-selling months of March, April, May and June.”
Inventory increased for single-family and attached Boulder County dwellings in February compared to January. Single-family home inventory increased 7.6 percent – 592 units versus 550 – while townhome and condominium inventory improved 2.3 percent – 138 units versus 130 – month-over-month.
Month-over-month sales of single-family homes in the Boulder-area improved 9 percent compared to January – 240 units versus 220. Condominium and townhome sales rose 7.9 percent month-over-month – 95 units versus 88.
Year-to-date, single-family home sales in the Boulder-area increased 12.3 percent through February 2018, with 467 homes sold versus 416. The number of condominiums and townhomes sold also rose, marking a 26.2 percent year-to-date jump with 183 units sold versus 145 units for the same period in 2017.
Hotard says Boulder County’s real estate market hasn’t changed from last year, noting that “given the market we have, there is no denying demand is strong and there continue to be active buyers.”
The one shifting fundamental is increasing interest rates.
“Interest rates are over 4.5 percent now and projected to go higher. The question is just how high they will go,” explains Hotard.
He says it’s too soon to tell if rising interest rates will put a damper on home sales or the area’s ever-rising real estate prices.
All told, not much has changed in Hotard’s view. “We still live in a beautiful place that offers an exceptional quality of life, Colorado job growth continues to be strong, and the areas surrounding Boulder County are experiencing rising real estate prices.”
So bring on the 2018 home selling season, it’s budding with promise.