This is the second part in a series on titled Boulder April Sales Update.
Boulder: Low Housing Inventory and Strong Housing Sales
This is the scenario that currently exists across the Boulder Valley, Metro Denver, and Northern Colorado – fewer listings and more sales. Combined with low mortgage interest rates the result is a perfect storm, if you’re a seller.
Scarcity Creates Demand
Normally, scarcity creates demand, which in turn adds value to whatever is in short supply. Looking at the areas noted above and average sales value; here is what has happened to the average sales value for single family homes when comparing end-of-year 2012 to through March/2013: Boulder (+2.62%): Louisville (+1.56%); Lafayette (+12.61%); Longmont (+9.66%); Superior (+.96%); Erie (+9.50%); Suburban Plains (+5.45%); and Suburban Mountains (+3.40%). Collectively, these market areas are +5.14%.
Strong Spring Housing Market
Look for the Boulder Valley spring real estate market to continue to flourish. Available inventory will creep-up, but will continue to be swept-up by prospective buyers waiting in the wings. Mortgage interest rates have trickled-up over the past few weeks. My concern with interest rates would be the Fed’s policy of purchasing 83 Billion dollars in mortgage bonds per month. When this policy ends or merely changes, expect to see interest rates climb. Until then, there are no signs on the horizon they will shift noticeably either up or down for the balance of 2013.
I am Bob Gordon, Realtor, with Re/Max Alliance. I blog daily on real estate and Boulder, Colorado. Join the conversation here or give me a call at 303-443-3334. My number follows me and I would be happy to discuss your real estate needs.