Boulder-Area Home Sales Warm As Spring Approaches

February’s Boulder-area home sales shook off January’s real estate chill with a rise in sales all around. But even with the significant jump for the month, sales for the year still lag compared with last year, which could be good news for those ready to buy a home in this competitive market.

Single-family home sales for Boulder rose 26.1 percent in February – 232 homes sold compared with 184 last month. In condominium/townhomes, 78 units sold in February, a 9.8 percent improvement compared with January’s 71 units sold.

“It was good to see the February rebound in sales for both single-family and attached dwellings. But year-over-year, sales are behind in both. We’re definitely getting a slower start to the year,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

Year-over-year, single-family home sales dropped 14.8 percent through February 2019 with 426 Boulder-area homes sold vs. 500 the previous year. Condo/townhomes slid 20.8 percent over the same period with 152 units sold vs. 192.

Inventory is virtually unchanged going up .013 percent for single-family homes with 723 homes for sales in February compared to 722 in January. Condos and townhomes saw a 5.4 percent increase in inventory over the same period with 254 units compared to 241.

“The cause of the slowdown is unclear,” says Hotard. “Interest rates aren’t rising. It seems that demand, which has been strong for several years, has eased a bit.”

This can be good news for buyers who are looking for an opening to jump in the Boulder County market. With inventory holding steady and demand easing, the buying environment may be somewhat less competitive than it has been for the past several years.

“What we need is more middle-income housing in Boulder County, that is, housing priced at $600,000 and below,” Hotard notes. “Areas like Erie, Longmont, and Lyons offer homes that are in that sweet spot of affordability, but we could use new housing in that price range.”

 

Originally posted by Tom Kalinski Founder RE/MAX of Boulder on Wednesday, March 27th, 2019.

 

Posted on April 3, 2019 at 3:00 pm
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January Home Sales Chill, Fundamentals Solid

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.

Posted on March 14, 2019 at 7:00 pm
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Home Sales Slow in December, Show Slight Decline for Year End

Boulder County home sales declined for December, but overall 2018 sales held somewhat steady with a slight decrease.

“December was not a fabulous month for home sales, particularly for attached dwellings,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

Sales of condominiums and townhomes in the Boulder-area dropped 42.9 percent in December compared to November – 72 units sold vs. 126. For the year, attached dwelling sales improved .02 percent with 1,525 units sold vs. 1,522.

Single-family home sales dropped 2.6 percent with 302 sales vs. 310 for December compared to November. Year-over-year, single-family home sales dropped 2.3 percent – 4,533 sales vs. 4,640.

Hotard points out the total decline for all Boulder County dwellings sold for the year – attached and single-family – was only 1.8 percent. That compares to a 3.1 percent national decline reported by the National Association of Realtors.

“Our Boulder County market continues to perform well. Job growth is good, demand is strong, and the area is desirable,” says Hotard, adding that inventory is an ongoing challenge.

Inventory of single-family homes dropped 24 percent in December compared to November—declining to 624 units from 821, while multi-family unit inventory decreased 22.4 percent—204 units versus 63—over the same period.

So where do we go from here?

Hotard says many reports indicate the U.S. is entering a home sales slump, but he expects the Boulder County markets to continue to buck the national trend.

“It’s possible well see a year-over-year decline similar to this year, but I don’t expect it to be more significant, if our markets decline at all,” he says.

In Hotard’s assessment, strong fundamentals in Boulder County are not waning: Employers continue to bring new jobs and prices are holding or improving.

But inventory continues to take a hit. “We need to see inventory numbers improve as we head into March, April, May and June,” Hotard adds.

“It’s going to be ‘steady as she goes’ in 2019, as long as we don’t have any major national or international events.”

 

Originally posted by Tom Kalinski Founder RE/MAX of Boulder on Monday, February 11th, 2019 at 1:34pm.

Posted on February 11, 2019 at 3:00 pm
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November Sales Head in Opposite Directions

A tale of two markets emerged in November, as Boulder County’s single-family home sales skidded to a stop, while townhomes and condos took a significant leap forward.

Single-family home sales in the Boulder-area markets dropped 14.4 percent in November compared to October —310 vs. 362 homes—while condominium and townhome sales rose 14.5 percent—126 units vs. 110.

Yet when data for 2018’s first 11 months is considered, the two markets tracked closely together, and both appear to be slowing, according to Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

“This is the first month single-family home sales fell below last year, and condos and townhomes are only slightly ahead,” Hotard explains.

Year-to-date through November, sales of single-family homes decreased 1.4 percent compared to the prior year with 4,205 homes sold vs. 4,266. Attached home sales over the same period improved 3.3 percent – 1,445 vs. 1,399 units sold.

Inventory decreased in both housing categories, though more significantly for single-family homes, which dropped 13.1 percent in November compared to October with 821 vs. 945 Boulder County homes for sale. Condo/townhome inventory fell 6.1 percent in November compared to the previous month with 263 units for sale vs. 280.

“My guess is the growth of the townhome/condo market is due to a larger inventory and more affordable pricing,” says Hotard. “Interest rates are making people jumpy, but the reality is that mortgage rates are still historically low. The more complete view is the inventory and pricing dynamics of the Boulder-area markets.”

He notes that single-family home sales could recover in December, but it’s not likely.

“We have the ongoing headwinds of low inventory and rising prices. When we look back, we’ll see 2018 as market slowdown for housing in our market areas,” Hotard predicts.

Despite the slow-down in housing, Colorado’s economy continues to show strength, wage growth is increasing, and gross domestic product is up, according to recent news reports.

“What the Boulder-area needs is more housing that is desirable and more affordable for people,” adds Hotard.

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Thursday, January 3rd, 2019 at 10:13am.

Posted on January 3, 2019 at 11:13 pm
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Boulder County Home Sales Spring Ahead

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.”

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, April 24th, 2018 at 11:31am.
Posted on April 26, 2018 at 6:52 pm
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First Signs of Spring Home Sales Show Promise

‘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.

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, March 27th, 2018 at 1:21pm.
Posted on April 3, 2018 at 7:34 pm
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