Home sales for Boulder-area real estate got off to a slow start in 2019 despite fairly mild January weather, resulting in decreased sales compared with a year ago.
Single-family homes posted 184 sales, a decrease of 20.3 percent compared with 231 homes sold in the same month last year. Sales of condominiums and townhomes dropped 23.0 percent for the same period with 71 units sold vs. 92.
“The market saw a pretty significant slowdown that started mid-November and continued through January,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association. “The fundamentals are still solid—inventory improved and interest rates aren’t going up quickly,” he says, noting that interest rates are historically low and affordable at around five percent or below for a 30-year fixed mortgage.
Month-over-month single-family home sales dropped 39 percent in January with 184 homes sold compared to 302 in December. Townhome/condo sales were a bit stronger, nearly matching December sales with a .013 percent decrease – 71 units sold vs. 72.
Inventory jumped 15.7 percent for single-family homes with 722 homes for sale in January compared with 624 in December. Attached dwellings showed even greater improvement, rising 18.1 percent—241 units vs. 204.
Hotard explains that for now the statistics represent a series of events. “Once we get enough data, we’ll start to see trends,” he says.
“There seems to be uncertainty in the market and buyers are thinking I can stay where I am and look for a better opportunity in the future,” says Hotard. “It’s a story that’s repeating itself in a number of markets across the country.”
Yet Boulder-area prices continue to rise or hold steady, job growth and the employment rate remain strong, and Boulder County is still a desirable place to live.
“Our strong fundamentals should attract buyers as we move through February.”
Originally posted by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, March 14th, 2019.
Boulder leads the nation for the most positive economic outlook, followed by two other Colorado cities in the top 10 — No. 3 Fort Collins and No. 9 Denver. According to the recent survey by Indeed.com, a positive economic outlook is driven largely by where you live more than by a national or political view of a national economy.
Colorado is the only state with three cities in Indeed’s top 10. Smaller mountain-state metro area residents performed well when surveyed about the economy and their personal outlook. Tech hubs also fared well, such as the San Francisco Bay Area, Austin, and Raleigh.
The following 10 U.S. cities have the highest economic confidence, according to Indeed.com:
- Boulder, CO
- Provo-Orem, UT
- Fort Collins, CO
- San Jose-Sunnyvale-Santa Clara, CA
- Boise, ID
- Ann Arbor, MI
- San Francisco-Oakland-Hayward, CA
- Austin, Round Rock, TX
- Denver-Aurora-Lakewood, CO
- Raleigh, NC
For the 2,000 American adults nationwide surveyed on politics and attitudes about the economy, local economic conditions such as lower unemployment, faster job growth, and a more educated workforce correlate with local economic confidence.
Nine percent describe their regional economic conditions as excellent and 51 percent say their economies are good. To analyze the local influence on economic perspective, Indeed combined answers to survey questions with data on local job markets. Five factors were found to drive local economic confidence:
- Personal finances – 81 percent of respondents rate their personal financial situation as excellent or good and say the same about local economic conditions.
- National economic view – 83 percent who rate national economics as excellent or good say the same about local economic conditions. The survey found that views of the national economic situation are also strongly influenced by politics, with 73 percent of Republicans and 43 percent of Democrats rating national economic conditions excellent or good.
- Local unemployment rate – Respondents in areas with lower unemployment rates have a more positive economic outlook. The outlook is likely driven by the view that a lower unemployment rate results in more job opportunities and bargaining power for workers, which should translate into faster wage growth.
- Higher local job growth – Job growth where you live means expanding opportunities and rising home prices. The majority of homeowners like this combined dynamic.
- Highly educated populations – For those who live in areas where a larger percentage of adults have a college degree – such as the Denver-metro area – there is a correlation with higher earnings and more spending power.
People are more optimistic when they live in places that are doing well economically. That holds true for those who live in Colorado where unemployment rates continue to be among the lowest in the nation and job growth remains strong.
Yahoo Finance article: https://finance.yahoo.com/news/10-u-s-cities-highest-economic-confidence-170140863.html
Indeed’s full report at: https://www.hiringlab.org/2018/11/27/local-economic-confidence/
Home sales in Boulder-area single-family and attached housing markets rose in August along with the late summer heat index.
Single-family home sales increased 10 percent in August 2018 compared to July with 460 homes sold in Boulder-area markets vs. 418. Sales for condominiums and townhomes climbed 15 percent with 146 units sold vs. 127.
Meanwhile, Denver-metro home sales went in the opposite direction, slowing significantly over the same period, according to the Denver Post.
It’s testament to the state of Boulder Valley real estate market, according to Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.
“We have our own little market here. While Denver dipped, Boulder Valley showed strong growth in sales, despite ongoing rising prices and inventory squeeze,” says Hotard.
Year-to-date sales also continue to climb steadily. Single-family home sales grew 1.7 percent through August 2018 compared to last year – 3,154 homes sold vs. 3,100. Attached homes followed a similar track, improving 1.6 percent year-to-date – 1,154 sold in 2018 compared with 1,135 in 2017.
Inventory dropped 2.0 percent for single-family homes – 993 units in August 2018 vs. July’s 1,013. But condo/townhomes available for sale grew 11.2 percent with 268 units available in August vs. 241 the previous month.
Hotard attributes the unceasing increase in real estate sales and prices to the area’s strong economy and continued job growth, along with a desirable quality of life. “Significant companies are hiring in Boulder, like Zayo, Google, Twitter – and the natural foods industry is strong,” he adds.
Interest rates are slowly pushing upward, which traditionally results in a slowdown in rising home prices and sales. But Boulder Valley’s housing market may not readily respond to interest rate increases.
“It’s unknown what the tipping point is for interest rates affecting our housing market. And with 35 percent of Boulder County homes bought with cash, rising interest rates may not have a significant effect locally,” says Hotard.
Looking ahead to the final quarter of the year, Hotard expects sales to continue to match those of last year, unless “something unusual happens.”
“We seem to be operating on an upward trend and it’s hard to see what would stop it. The real challenge for Boulder County is providing the housing and transportation infrastructure to support job growth.”