The Number of Boulder Homes For Sale Decrease In 2015
We are deep into a solid Home Sellers’ Market in the City of Boulder. This is characterized by decreasing inventory and increasing numbers of home buyers seeking a place to call home. Home mortgage interest rates remain favorable. This data from the Boulder Area Realtor Association (BARA) is the focus of this August 2015 Boulder market update. Let’s start with an overview of what’s occurring, see chart.
If The Market Is So Hot, Why Are Boulder Home Sales Declining
The current sales market is defined by an ever decreasing amount of home inventory for sale. It’s important to note, as some buyers remain on the fence, convinced the market will over correct and fall in value, as happened in 2007. What’s different now, and evident as you review the chart for the August 2015 Boulder market update above, is that sales are way down. Back in 2007, it was just the opposite. Everyone was selling. Inventory of homes for sale was dramatically higher. Sales were incredibly higher. Today, inventories are severely depressed. Boulder home values are climbing precisely because there is so little quality inventory available in the marketplace.
A nasty side effect of this ratcheting market is the median home value is dramatically increasing. Boulder median single home prices spiked 15% in 2015. Average home prices for Boulder Co are up as well by almost 10%.
Looking Beyond the August 2015 Boulder market update
I don’t have a crystal ball, so this is not fact. But with a continuing shift in population from the Midwest to the West, we can expect higher demand for an increasingly diminished housing inventory. And as that trend continues, expect Boulder home prices to climb amidst ever tighter housing inventory. Here are two charts that exemplify the increase in home values in recent years:
The thing is, when you look at the sales trend, values have been only steadily increasing since the end of the Great Recession. Boulder is now eight years removed from the meltdown.
Moreover, if you look at historical data for Boulder, home values have increased since 1978. The market is generally considered a safe investment by a myriad of investors, local and afar.
What I sometimes hear of late is the market is cyclical and the next phase will be a sudden downturn. But IMHO, that is over simplifying real estate. For starters, the number of home sales is simply dramatically down since the eve of the Great Recession. If the market were oversold, this would be the moment where everyone jumped in and sold their house. That’s not happening. The next phase will likely be more inventory, a balancing of the market. But there is no indication of this change on the horizon. For now, the new normal is ever decreasing inventory, ever increasing competition, with higher home prices to live in Boulder Colorado.
Key Boulder Real Estate News Statistics
- Month’s supply housing for sale (August) decreases from 2014 to 2015, now at 3.1 months; -20.5%
- Median Home price sharply up for the month of August; +15.3%
- Month’s supply of inventory (attached; condos and town houses) for August, down -52.9% year over year
- Year to Date Attached Dwelling Prices UP +16.9%, increasing from an average of $322,395 to $376,891
- New listings, houses for sale Boulder down 7% from 129 to 120
- Sold Homes Boulder down 6% from 100 to 94
About the author Realtor Bob Gordon
Focusing on residential real estate in Boulder Colorado since 1995. Writing the blog www.BoulderRealEstateNews.com since 2012. Part of the Berkshire Hathaway HomeServices office, available online here or direct at 303-931-9901.