April Market Summary

Market Summary:

 

• % Of Units Under Contract: (larger markets – Boulder/Denver)

 

• Single Family Homes:
  • Boulder’s single family home market activity remains very strong (Seller’s market) up to $2mm, and is balanced above $2mm
  • Denver’s single family home market activity remains very strong (Seller’s market) up to $1mm, is balanced between $1mm – $2mm, and is a Buyer’s market above $2mm.

 

• Attached dwellings (condo/townhome):
  • Boulder’s attached dwelling market activity remains very strong (Seller’s market) up to $1mm, and is balanced above $1mm
  • Denver’s attached dwelling market activity remains very strong (Seller’s market) up to $1mm, and is balanced above $1mm

 

• Current Inventory: Inventory is building as is seasonally expected, and is similar in almost all markets as compared March 2016. In most sub markets, there is slightly more inventory that we did as compared to 2016.

 

• Units Sold: The number of units sold to date in 2017 was slightly lower for single family homes, and the same for attached dwellings as compared to 2016.

 

• Days to Offer: The average “days to accepted offer” has been trending upwards in most sub markets for the last few months for both single family homes and attached dwellings.

 

• Appreciation: (12 months, all markets)

 

APPRECIATION IS TRENDING DOWNWARD SLIGHTLY FOR SFH

 

• Single Family Homes: 6% (last month = 10.86% / 2 months ago = 11.11%)

 

APPRECIATION IS TRENDING UPWARD SLIGHTLY FOR ATTACHED DWELLINGS

 

• Attached Dwellings: 98% (last month = 20.48% / 2 months ago = 19.669)

 

• Market Talking Points:

 

• Percentage Under Contract (Boulder): In the more affordable price ranges, the percentage of homes currently under contract (sale pending) reflects a strong Seller’s market. However, the percentage of homes under contract in Boulder is noticeably lower than it was in the same month last year.
  • Boulder homes priced under $750K = 2016 (77%) / 2017 (53%)
  • Boulder homes priced between $750K-$1mm = 2016 (69%) / 2017 (43%)
  • Boulder homes priced between $1mm-$1.5mm = 2016 (61%) / 2017 (54%).
  • Interestingly, the percentage of single family homes under contract above $1.5mm is trending higher than it was at the same time last year.

 

The same downward trends are occurring in Boulder’s attached dwelling market as well:

 

• Boulder attached price under $500K = 2016 (77%) / 2017 (64%)
• Boulder attached between $500K-$750K = 2016 (88%) / 2017 (48%)
• Boulder attached between $750K-$1mm = 2016 (65%) / 2017 (47%)

 

Denver’s inventory of both single-family homes and attached dwellings for sale in 2017 (percentage under contract) is tracking almost identical to 2016.

 

• Lack of Affordable Homes: Although the City of Boulder may be cooling slightly in the lower price ranges (as reflected in the % under contract 2016 vs 2017), the lower prices ranges are still very unaffordable for many home buyers. As a result, the demand for more affordable housing is increasing the pressure in the surrounding communities as seen by the % of homes under contract in the more affordable price ranges:

 

Most affordable price ranges in each community (% under contract):

• Boulder – 46% (considerably lower than the surrounding communities)
• Louisville – 75%
• Longmont – 81%
• Lafayette – 94%
• Broomfield – 87%
• Erie – 79%

 

• Days to offer: The “days to an accepted offer” have been increasing since January 2017, indicating a possible slowing trend. The general consensus among listing brokers in competitive offer situations, is that there are still multiple offers for many of the new listings in the most desirable price ranges and locations, but that there are fewer offers to present to their sellers in multiple offer situations.  For example, in 2016 a listing broker would receive 7 offers to present to their seller, today the listing broker might only have 2 or 3 offers to present to their seller.

 

1. Market Appreciation: The single-family home appreciation rate (combined market average) is 10.6% (trending downward slightly) and the attached dwelling appreciation rate (combined market average) is 20.98% (trending upwards slightly). The more affordable price ranges remain the strongest segment of the market for both single family homes and attached dwellings.  However, the upper price ranges are balanced (neither a seller’s nor buyers’ market). A

Market Summary

Market Summary:

 

• % Of Units Under Contract: (larger markets – Boulder/Denver)

 

• Single Family Homes: Boulder’s single family home market activity has picked up since last month in almost all price ranges. Denver’s % under contract has increased for homes under $750K, and has decreased for homes above $750K.

 

• Attached dwellings (condo/townhome): The % of attached dwellings under contract is the same as last month and similar to 2015..

 

• Current Inventory: As expected at year end, the inventory of available single family homes and attached dwellings is at the lowest point of the year (as expected). Inventory is expected to increase by mid-January.

 

• Units Sold: The number of units sold for single family homes and attached dwellings surprisingly is very similar to both last month as well as the same time last year.

 

• Days to Offer: The “Days to Offer” has decreased slightly in most single family home sub-markets, except for Boulder, Louisville and Erie, where the days to offer has increased slightly.  The “Days to Offer” for attached dwelling has increased for Boulder as well as all sub markets.

 

• Appreciation: (12 months, all markets)

 

• Single Family Homes: 11.22% (last month = 53%)

 

• Attached Dwellings: 92% (last month = 23.23%)

 

• Market Talking Points:

 

 

• Denver Metro Area Market Summary: The Denver Metro area is trending very similar to the same time last year (volume sold, number of listings, etc.)

 

Here are a few interesting Denver Metro area statistics:

 

• Denver Real Estate: The days on market has increased from 22 to 24 days.

 

• The average and median year end appreciation for all residential properties in Denver is 9%.

 

• The sold price to list price is 100.2% YTD, however, this % has been trending downward over the last few months and is now at 99.4%

 

 

• Year End Market Summary: The 2016 real estate market ended up very similar to 2015. There was high buyer demand, an overall lack of inventory and as a result strong price appreciation.  The Boulder and surrounding community Single Family Home market appreciated an average of 11.22%.  The attached dwelling market performed even better with year-end appreciation at an average of 20.92%.   Denver experienced an average appreciation of 9%.

 

A couple interesting points for 2016:

 

• Unlike the rest of the front range market that picked up in 2012, the “close-in” mountain community was slower to recover. However, in 2016 the “close in” mountain real estate market is once again a hot commodity.

 

• In 2016 the “high-end” (2 million+) Boulder market has a firmly established itself as a segment of the market that has been in continual high demand.

 

• Although the attached dwelling market experienced incredible appreciation in 2016, the attached dwelling segment of the market is beginning to show signs of slowing in 2017 with increased time on market to receive and accept offers.

 

• The more affordable segments of every community are in the highest demand, and all are currently experiencing a Seller’s market. The upper price ranges are experiencing more balanced market.

Front Range Market Summary

Market Summary:

 

In most segments the 2016 market is looking very similar to 2015 with a few exceptions:

 

• % Of Units Under Contract: (larger markets only – Boulder/Denver)

 

• Single Family Homes: With few exception, the % of homes currently under contract has decreased since last month.  Although the under contract %’s have decreased, almost all price segments of the market are very similar to the % under contract at this time last year.  

  

• Attached dwellings (condo/townhome): The attached dwelling market is experiencing a very similar seasonal decline as compared to the single family home market.  The one exception to this seasonal decline is attached dwellings in Boulder over $1mm, which has much higher buyer demand than the same time last year.  

   

• Current Inventory: The inventory of homes and condominiums for sale is similar in both the larger (Denver/Boulder) as well as the smaller sub-markets as compared to last month, and is almost identical to the same time last year.  The exceptions to this trend include Boulder and Erie, both of which have less inventory than this time last year.

 

• Units Sold: The number of units sold for both single family homes and attached dwellings is similar to last month, as well as the same time last year.  May and June were the peak months for sales volume.  

 

• Days to Offer:  The “Days to Offer” has decreased slightly in most single family home sub-markets, except for Erie where the days to offer increased slightly over the last 2 months.  The “Days to Offer” for attached dwelling has decreased for Boulder and Louisville, but has increased for Lafayette, Longmont and Superior  

 

 

• Appreciation: (12 months, all markets)

 

 

 

• Single Family Homes: 12.9%

 

 

 

• Attached Dwellings: 19.59%

 

 

• Other Notes: In the last 12 months, Superior has experienced the highest level of appreciation for both single family homes as well as attached dwellings, Louisville has experienced the lowest level of appreciation.  

 

The market today~

Market Summary:

The market is looking very similar to the same time last year. The % under contract, inventory

available and volume of homes sold are very comparable to February 2015. In the last 12

months, appreciation in our local sub-markets is ranging from 6% – 16% for single family

homes, and 8% – 19% for attached dwellings.

Under Contract Ratios and Changing Market Price Points: Colorado’s front range has

experienced historic buyer demand and appreciation over the last 3 years from Castle Rock on

the south to Fort Collins on the north. Buyer demand has been especially strong in the more

affordable segment of each sub-market below a certain price point. In every sub-market, Buyer

demand trends downward as prices increase. Here are the price points for our local

communities:

Boulder = $980,000

 Below $980,000 = 70% under contract

 Above $980,000 = 32% under contract

Louisville = $670,000

 Below $670,000 = 63% under contract

 Above $670,000 = 25% under contract

Longmont = $415,000

 Below $415,000 = 80% under contract

 Above $980,000 = 52% under contract

Lafayette = $550,000

 Below $550,000 = 86% under contract

 Above $550,000 = 48% under contract

Broomfield = $495,000

 Below $495,000 = 71% under contract

 Above $495,000 = 49% under contract

Erie = $405,000

 Below $405,000 = 70% under contract

 Above $405,000 = 44% under contract

The start of 2016 Stats & Market Update

 

 

 

 

 

 

 

 

 

 

Market Summary:

The single family home market data varied from the attached dwelling market in January 16’,

and also varied per county.

Boulder County experienced an overall increase in January sales volume for single family

homes, but a decrease in sales volume for attached dwellings. With the exception of City of

Boulder, the surrounding communities have less inventory as compared to the same time last

year. As a result of the lower inventory and significant buyer demand, it is not surprising that

values continue to rise at historic rates. In the last 12 months, Average price appreciation per

area is as follows:

Single Family Homes (average price appreciation):

 Boulder 17.7%

 Louisville 5.7%

 Lafayette 11.1%

 Superior 11.3%

 Erie 8.9%

 Mountains 5.9%

 Longmont 12.5%

Attached Dwellings (average price appreciation):

 Boulder 15.3%

 Louisville 15.9%

 Lafayette 9.7%

 Superior 7.5%

 Longmont 15.7%

In reviewing current buyer demand for January 2016, the demand is similar to this same time

last year for single family homes, but significantly higher for attached dwellings.

The Denver market is experiencing similar buyer demand for both single family homes and

attached dwellings as compared to the same time last year. However, both inventory and

sales volume are up substantially.

Entering Summer Season

 

Here’s a quick recap of where we are this month in our market~

Information provided by IRES and Metrolist Information Services.

 

Boulder Single Family Homes, Market Recap:

 

• Percentage of Homes Under Contract = Similar to last month
• Year-to-Date Home Sales = Equal as compared to the same date as last year.
• Monthly Single Family Home Inventory = down (-9.44%) as compared to the same month last year.  
• The Days-to-Offer = down (-25.8%) from the same time last year.
• Median Sales Price = Up (+19.4%) from the same time last year
• Average Sales Price = Up (+24.1%) from the same time last year.

 

Price Range                           Activity Level

$0 to $1.5mm              =         Seller’s Market

$1.5mm to $2mm        =         Balanced Market

$2mm and up             =         Buyer’s Market

 

Boulder Attached Dwellings, Market Recap:

 

• Percentage of Homes Under Contract = Higher in the lower price ranges, Lower in the higher price ranges
• Year-to-Date Home Sales = Up (+2.7%) as compared to the same date as last year.
• Monthly Single Family Home Inventory = down (-34.1%) as compared to the same month last year.  
• The Days-to-Offer = down (-45%) from the same time last year.
• Median Sales Price = Up (+18.3%) from the same time last year
• Average Sales Price = Up (+23.5%) from the same time last year.

 

Price Range                           Activity Level

$0 up to $1mm                        =         Seller’s Market

$1mm and up              =         Balanced Market

           

Denver Single Family Homes, Market Recap:

 

• Percentage of Homes Under Contract = Similar to last month
• Year-to-Date Home Sales = Up (+12.2%) as compared to the same date as last year.
• Monthly Single Family Home Inventory = Up (+28.6%) as compared to the same month last year.  
• The Days-to-Offer = down (-29.5%) from the same time last year.
• Median Sales Price = Up (+16.5%) from the same time last year
• Average Sales Price = Up (+13.1%) from the same time last year.

 

Price Range                           Activity Level

$0 to $750,000            =         Seller’s Market

$750,000 to $1.5mm   =         Balanced Market

$1.5mm and up           =        Buyer’s Market

 

Denver Attached Dwellings, Market Recap:

 

• Percentage of Homes Under Contract = Similar to last month
• Year-to-Date Home Sales = Equal as compared to the same time last year.
• Monthly Home Sales = Up (+10.4%) as compared to the same month last year.  
• Monthly Single Family Home Inventory = Up (+54.5%) as compared to the same month last year.  
• The Days-to-Offer = down (-28.6%) from the same time last year.
• Median Sales Price = Up (+16.9%) from the same time last year
• Average Sales Price = Up (+14.9%) from the same time last year.

 

Price Range                           Activity Level

$0 to $750000             =         Seller’s Market

$750,000 to $1mm      =         Balanced Market

$1mm and up              =         Buyer’s Market

Overall Market Recap:

 

The Boulder/Denver real estate data for spring/early summer continues to show the equally high buyer demand in almost all market segments.  Normally, we experience a temporary slowdown in Buyer demand after Memorial Day; however, this did not occur in 2015 as Buyer demand remains strong.

 

One significant difference we are experiencing between the Boulder and Denver real estate markets is the amount of inventory available for sale.  Boulder’s inventory levels remain weak and are significantly lower than this time last year.  As a result of the limited inventory, Boulder’s prices have again reached a new all-time high, with the average price at $987,565.  Conversely, Denver is bringing a significant amount of new single family home and attached dwelling inventory to the marketplace.  Regardless of the added inventory, Denver’s prices are also continuing to rise at a double digit pace, just not as quickly as Boulder.

 

With this current market activity, it is no surprise that the amount of time it takes for a broker to procure an acceptable offer has dropped between 25% and 55% as compared to this time last year.  Sales volume remains equal on a month to month basis for single family homes, but we are experiencing an increase in sales volume for attached dwellings.

Rates edge up, unemployment dips to 5.4%

Today’s Mortgage Rates!

Rates have edged up from their lows of the year.  We are still below 4.00% but based on economic data it is hard to say how long this will last.  Unemployment figures for the month of April came out today and the unemployment rate dipped to 5.4%!! Good news for the economy but this will undoubtedly continue to put pressure on mortgage interest rates to go up!   I continue to play it conservatively and encourage clients to lock in, if rates dip they can always take advantage of Guaranteed Rate’s float down option. As the market continues to be competitive, we are finding appraisers at their maximum as far as volume.  The days of waiting for an inspection resolution to order an appraisal are long over.  Good agents and lenders let their clients know this upfront.  Average appraisal turn times are 2 – 3 weeks with a rush request!! Thank you for your business! Your referrals are the best compliment I can receive! License #MB100015499    NMLS #312874

Our Current Market

A semi-dry April has been followed by a very rainy May for the Front Range.  This is a great thing, despite the threat of floods, as we’ll have a nice colorful Spring and beginning of Summer!  It is sad to say goodbye for now to ski season but a fun filled summer of activities awaits.

Concerning  Boulder/Denver real estate,  the data for spring continues to show increased buyer demand in most market segments.  The limited housing supply has driven prices above the last market peak of 2007/2008.  With the exception of Boulder proper, we are seeing improved housing inventory numbers as compared to both last month as well as last year.  Denver again showed the strongest month to month inventory gains.  The inventory of attached dwelling units remained level in most market segments as compared to April.  The exceptions were Denver, which showed an increase in inventory, and Boulder which showed a decrease.

Sales volume remained fairly level on a month to month basis.  Although we are only using 4 months of data points for the YTD sales info, both median and averages prices have increased substantially in Boulder and Denver.  Boulder single family home price increases range between 20% and 26% as compared to this time last year, and Denver ranges between 15% and 19%.  For attached dwellings, Boulder increases range between 8% and 16%, and Denver ranges between 19% and 20%.

Overall:

Single family homes

*Boulder  up to $1.5mm is a sellers market

*Denver up to $750k is a seller market

Attached dwellings

*Boulder up to $1mm is a sellers market

*Denver up to $750k is a sellers market

 

Overall Market Recap

Mt. Sanitas Valley Trail

The Boulder/Denver real estate data for early 2015 continues to show a very strong housing market with continued, and in some cases increased buyer demand, especially for single family homes in Boulder price under $500k.  We are beginning to see an increased level of single family home inventory in most market segments, the exceptions being Boulder and Lafayette.  Denver showed the strongest inventory gains with a 13.8% increase of homes for sale over last month.  The inventory of attached dwellings also increased in most market segments as compared to February (Denver again showing the strongest gains with an 18.6% increase over February of attached dwelling units).

Sales volume increased in almost all market segments on a month to month basis, which is historically consistent with the real estate selling season.  Although we are only using 3 months of data points for YTD sales information, both median and averages prices have increased substantially in Boulder and Denver.  I suspect part of the increased values can be attributed to the lack of lower priced inventory currently on the market, as owners are finding that increased rental rates make the more affordable homes good investment properties, and are choosing to rent instead of sell in some cases.

A new trend in home buying

Millennials to Drive Down Home Sizes

This is a great article that I found online.  It seems that the trend of young homebuyers is definitely moving towards smaller more affordable homes.  I see the tiny house really taking off  in the Colorado area and I think those who need a bit more space still enjoy that concept.  

The younger generation will make their mark on the look of homes in the coming years as homes likely will get smaller, separate laundry rooms will become essential, and home technology will be a must, according to a panel of builders and designers speaking at the International Builder Show last week.

A growing number of first-time buyers will likely lead to smaller homes — a downsizing home trend that may start showing itself even in 2015, predicts Rose Quint, the assistant vice president of research at the National Association of Home Builders.

As younger, first-time buyers re-emerge on to the market, “they will demand smaller, more affordable homes,” Quint says. “Builders will build whatever demand calls out for.”

NAHB recently surveyed millennials on what home features they “most wanted” in a home. Here are some of the features that topped their list:

• A separate laundry room: 55 percent of millennials said they wouldn’t buy a new home that didn’t have one
• Storage: linen closets, a walk-in pantry, and garage storage
• Energy efficiency: millennials said they are willing to pay 2-3 percent more for energy efficiency as long as they see a return on their power bills

What would they be willing to sacrifice? Millennials surveyed said they’d sacrifice extra finished space or even drive a little farther to work, shops, and schools in their home purchase. However, they aren’t willing to compromise with less expensive materials in their home, the survey found.

Seventy-five percent of millennials surveyed said they want to live in a single-family home, and 66 percent said they prefer to live in the suburbs. Only 10 percent said they wanted to stay in the central city.

Since millennials tend to be more cash-strapped than older home owners, they often seek less expensive, low-maintenance choices in a home, such as landscaping that needs less watering and mowing and larger patios instead, said Jill Waage, editorial director for home content at Better Homes and Gardens, which also regularly surveys buyers on home preferences. Millennails are often very tech savvy, and increasingly are asking for ways to control their home’s heating, air conditioning, security, and lighting from their phones or tablets.

“They want to use their brain for other things, not for remembering whether they adjusted the heat or closed the garage door,” Waage said.

Source: National Association of Home Builders