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R i c h ' s B o u l d e r C o u n t y R e a l E s t a t e R e p o r t
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Precipitous Price Increases Unlikely to Last
With the median Boulder County home sales price up 7.8%, and the average sales price up 4.9% this year, many of you have asked if I think prices will continue to rise as precipitously. I don't. The market took off this year due to pent up buyer demand and very low interest rates. The current pace of price increases isn't sustainable for three reasons:
- Inventory should expand. Property owners who have been hesitant to sell because they were concerned that they couldn't sell their home for an acceptable price are feeling more confident.
- Mortgage rates are rising. Rates are up .625% this month over last month. The 30 year fixed rate was 3.5% and it is now 4.125%.
- Investor interest will fade. Undervalued prices attracted investors who then helped push up home prices. But as prices rise, investor interest fades.
The next question is whether expanding inventory, rising mortgage rates and declining investor activity will cause home prices to drop? Slow down, yes, but not drop. Just as these factors should cause home prices to slow, job growth and increased household formation should support a continued recovery in housing demand. My sense is that the market will level out for the year by the end of summer. Historically, our market sees prices rise in the first and second quarters, leveling off by August when most buyer demand has been met for the year.
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Area Real Estate Sales
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Median Sales
YTD
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Median
Sales Price
YTD
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% of List Price
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Average Days
to Sale
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Residential
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Boulder
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600,000
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96.64
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100
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Louisville
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414,700
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98.23
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93
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Lafayette
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370,000
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98.27
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97
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Longmont
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245,000
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97.98
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97
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Gunbarrel
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419,000
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97.19
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89
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Niwot
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612,000
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95.99
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129
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Superior
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425,000
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98.76
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82
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Broomfield
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332,500
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98.00
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95
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Erie
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336,000
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97.59
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104
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Mountains
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350,000
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95.60
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180
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Condos/Townhomes
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Boulder
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266,000
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97.73
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106
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Louisville
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217,500
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99.37
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86
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Lafayette
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205,000
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98.37
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104
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Longmont
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173,000
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97.88
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105
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Gunbarrel
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161,250
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96.79
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105
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Superior
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184,450
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97.91
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82
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Source: Information Real Estate Services
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Great Boulder Business  The RE/MAX of Boulder community website Bouldersource.com just featured a business owned by two of my clients, Brian Buckley and Kate Hunter. Innisfree Poetry Bookstore and Cafe is one of those businesses that makes this community special. Read more about Innisfree here. |
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Current Interest Rates
30 Year Fixed Conforming 4.125%
5/1 ARM Conforming
2.625%
15 Year Fixed Conforming
3.125%
30 Year Fixed Jumbo
4.25%
5/1 ARM Jumbo
2.875%
7/1 ARM Jumbo
3.0%
Rates provided by Calvin Cox at Bank of Commerce Mortgage at 303-931-8360
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Contact me for:
Buying & Selling.
Refinancing.
Leveraging equity to buy investment property.
1031 Exchange.
Real estate as a retirement strategy.
Using your IRA for real estate investing.
Real estate for college savings.
Buying real estate for college-age children to live in while at school.
Helping parents relocate or transition to a new housing situation.
Purchasing vacation property in ski country, tropics or other resorts.
Finding a quality realtor for transactions outside our market. |
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