Spring selling season in Boulder County continues to soar with April’s residential sales keeping pace with last month’s rocketing sales as well as outperforming April last year.
“Demand remains strong and inventory tight, keeping upward pressure on pricing,” says Ken Hotard, senior vice president of public affairs for Boulder Area Realtor® Association.
The 345 single-family homes that sold in April 2018 topped March’s rising sales by one unit or .3 percent; and the 126 condominiums and townhomes sold in April represented an additional 4 sold or 3.3 percent over last month.
Year-over-year Boulder-area single-family home sales climbed 5.4 percent through April 2018 – 1,198 homes sold vs. 1,137 – and condo/townhomes sales increased 5.9 percent with 447 units sold compared to 422.
Inventory also grew, which has proven to be a key factor in maintaining sales.
“While inventory showed solid increases in both single-family and condo/townhomes, we could use three-to-four times that amount to meet demand,” says Hotard.
Countywide single-family inventory increased 18.2 percent in April over March with 770 homes for sale vs. 651. Condo/townhome inventory improved 16.4 percent over the same period – 163 units vs. 140.
Hotard says evidence shows prices may have not yet reached a peak. “This is the first time I recall median prices over $1 million. It’s clear that with the city of Boulder built out on single-family housing stock, it’s putting pressure on prices.”
He notes that many dynamics shape the market. “Clearly affordability is a big issue – it influences who can live here, whether purchasing or renting. As more people can’t afford to live here, it’s a big loss because we are losing high quality people and the marketplace is becoming more exclusionary.”
Noting that buyers are coming from many places including California, Chicago, Texas and Nebraska, Hotard says people look to Colorado because of the entrepreneurial spirit and low unemployment.
Hotard summarizes, “As Boulder is to Colorado, Colorado is to the rest of the country.”
Posted by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, May 29th, 2018 at 11:56am.
Early in 2018 the real estate outlook for Boulder County looks strong, even while sailing into the same headwinds that prevailed last year: low inventory and rising prices.
But this year promises additional gusts in the form of rising interest rates.
“None of the fundamentals in the market have changed, except a small rise in interest rates and the anticipation of additional increases,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.
“January data shows year over year single-family home sales are about the same as last year, and condos and townhomes are up significantly.”
Single-family home sales for Boulder County are down a single unit or .05 percent with 220 units sold in January 2018 compared with 221 in January 2017. Month-over-month, January sales dropped 39 percent for the first month of 2018 compared to December’s 363 units sold.
In condominium/townhomes, 88 units sold in January 2018, a 44.3 percent improvement compared with 61 units sold a year ago, but a 26.7 percent drop compared with the 120 units sold in December.
“December finished strong and the totals for 2017 pushed over and above 2016 slightly, which makes having a strong January challenging,” says Hotard.
Inventory continued its persistent decline. Single-family homes for sale in the Boulder-area declined 1.3 percent in January 2018 compared to December 2017 – 550 units vs. 557.
Meanwhile, condominium and townhome inventory improved 8.3 percent in January compared to December – 130 units versus 120.
Hotard notes that rising mortgage rates is a new factor for real estate markets that have seen a long run of low interest rates. He says the question is whether rising rates, while still historically low, will have a dampening effect on pricing or sales.
“Affordability is already an issue in Boulder, Louisville and Niwot. If interest rates go up people may have greater difficulty affording higher priced homes,” he adds. For 2017, Boulder’s median sales price came in over $800,000, Niwot’s roughly $750,000 and Louisville’s nearing $575,000.
With minimal data to consider this early in the year, Hotard is reluctant to predict this year’s market.
“For now, the data is over a small number of sales, so it’s difficult to identify trends. But this market has been strong for years and it is likely to continue to be strong.”
Posted by Tom Kalinski Founder RE/MAX of Boulder on Monday, March 5th, 2018 at 9:37am.