Flatirons

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Flatirons
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: 

  1. 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.
  2. 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%.
  3. 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.

Area Real Estate Sales
For more sales statistics, go to richgribbon.com
 

 

Median Sales

YTD 

Median
Sales Price

YTD

% of List Price

Average Days
to Sale

 

Residential

 

 

 

 

 

Boulder

600,000

96.64       

100

 

 

Louisville 

414,700

98.23

 93

 

 

Lafayette

370,000

98.27

 97 

 

 

Longmont

245,000

97.98

 97  

 

 

Gunbarrel

419,000

97.19

 89  

 

 

Niwot

612,000

95.99  

129

 

 

Superior

425,000

98.76

 82

 

 

Broomfield

332,500

98.00

 95  

 

Erie

336,000

97.59

104

 

Mountains

350,000

95.60

180

 

Condos/Townhomes

 

 

 

 

 

Boulder

266,000

97.73

106   

 

 

Louisville

217,500 

99.37

 86 

 

 

Lafayette

205,000

98.37

104

 

 

Longmont

173,000

97.88

105

 

 

Gunbarrel

161,250

96.79

105

 

 

Superior

184,450

97.91

 82

 








 Source:  Information Real Estate Services 

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
 
JUNE 2013


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

 

 

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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