It’s getting hot in here is the song I would use to describe today’s Boulder real estate market analysis. Home values are jumping. Affordable housing is being redefined. Luxury home sales are strong and overall, confidence in the community seems to be on the upswing. Plus, it is really crazy hot outdoors this summer. Let’s take a look a the local market.
Boulder Luxury Home Market
The best place to start this June Boulder real estate market analysis is with the highest priced and nicely performing segment of today’s market: Luxury homes. We had nineteen million dollar plus sales in Boulder for June. That’s huge. It is almost a 25% market share. Prices ranged from $25K over a million for a home with no garage to just under three million on a property in the shadow of Chautauqua (featured in my weekend update earlier!).
How does June 2014 compare to June 2013? Sales volume for million dollar plus listings is up this year by twenty five percent. There were only fifteen million dollar or better sales in June 2013. Of course, not to be outdone, the least expensive and most expensive million dollar homes were pricier than their counterparts this year.
Considering that overall inventory is down and the total volume of sales is down, I think it is a positive indication for the economy that there are more Boulder luxury home sales year over year for June.
Interest rates started UP from a year ago and today are tad better than this time last year, according to Ananda Lantaff with Mutual Security of Boulder. Home mortgage rates still remain quite low by historic standards, but are positioned to increase in the near future. Why. I asked a number of mortgage professionals for advice. John Arnold, a home mortgage specialist with People’s Bank in Longmont Colorado shared the following Boulder real estate market analysis regarding interest rates.
“The reason rate are still low is that there is no buy-in from Wall Street that things are really better. Yes unemployment looks good on the surface-a 6.1% rate is suddenly considered full employment, when just 2 years ago it was 5 but let’s not quibble. (6-6.5 is now the new normal.). The employment numbers were very good. This despite a tepid growth rate for the rest of the economy in the 1st quarter. You don’t have to look far to know why.
BTW, that percentage does not include the four out of ten that have completely given up looking for a job. Labor participation is only 62%, historically a low. It also counts part time as full time work, and about 24% of respondents were working part time but wanted full time. Nationally, real earnings are down, and are not enough to fuel any discretionary spending.
Thus the lame growth numbers, which I doubt will improve much. This is the anchor preventing the market and the government from declaring victory and asking everyone to please move on.” Now, on with the real estate portion of my Boulder real estate market analysis for June 2014.
Boulder Home Sales For June 2014
The month of June 2014 was solid, with eighty six residential home sales according to IRES multiple listing service. Prices ranged from the very Boulder Permanently Affordable priced $125,000 to the truly luxury $2,830,000. One of the more interesting Boulder Real Estate Market Analysis items is how quickly do homes sell? For June, seven homes sold in 24 hours. That’s a little under ten percent of the sold stock.
An additional thirty four homes were contract inside of a week or less according to the latest Boulder real estate market analysis for June numbers. That’s 48% of residential Boulder sales taking a week or less to be under contract. You can see, it really is getting hot in here when you look at the residential home market!
My own experience for June backs this up. I listed two sharp attached dwellings in Boulder. Each received multiple offers within what felt like the first minutes of entering the market. One property already closed. 1275 Bear Mountain Dr # D sold for $15,000 over list price, with multiple offers in the first 48 hours we allowed showings. Boulder home values are climbing and interest in living in Boulder remains at an all time Rocky Mountain high!
Define Boulder Affordable Housing
One trend that is present in my Boulder Real Estate Market Analysis June 2014 and May 2014 is that affordable Boulder housing is usually costing more than $400,000. A few homes do sneak on – and quickly off – the market under $400,000. To purchase one of these rare properties, buyers need to be exceedingly well prepared and understand how to to compete and win in a multiple offer scenario. Based upon summer statistics, houses that are market rate and truly affordable in Boulder are one percent of inventory.
Trending Boulder Real Estate Market Analysis Conclusion
Low inventory, multiple offers and a high entry level price point for Boulder’s single family residences seems to be the bottom line for Boulder in 2014. Contact Bob Gordon now to get your home search started or your house on the market to sell.