Year over year, we have seen sales prices in Boulder County’s real estate market increase in value across the board. For example, Boulder’s median sales prices is up $80,000 over 2014 sales prices for single family homes. Lafayette, Erie, and Louisville are up $30,000 to $40,000. At the same time we are seeing average days on market decrease across the board.
One question we are hearing more frequently this summer is, “are we going to see another crash?” or “when will the pricing bubble pop?” . Our answer, and the Chief Economist for the National Association of Realtor’s answer, is NO! Many conditions are different now than they were 10 years ago, when we experience the previous housing crash. Mortgages are much more difficult to obtain and lenders are under more strict regulation. The number of homes being sold is around 5 million, whereas 10 years ago it was closer to 8.5 million.
The Chief Economist for NAR believes the market will continue to stay strong and we will continue to see home prices increase until the interest rate reaches 6%. Once this mark is reached, the home values will begin to balance and home prices will level off, NOT fall. Interest rates are predicted to remain at 4% for the next year or so. Right now we will continue to see incredible appreciation for the foreseeable future.
New Listings were up 6.3 percent for single family homes but decreased 14.8 percent for townhouse-condo properties. Pending sales clocked in at 289 for single family homes and 98 for townhouse-condo properties. The Median Sales Price was down 10.0 percent to $475,000 for single family homes but increased 3.8 percent to $275,009 for townhouse-condo properties. Days on Market decreased 12.7 percent for single family homes and 29.5 percent for condo properties. Having six months of 2015 data in the books is great, but it is still just intermission at this halfway point of the year. Forecasting market trends can be as dicey as the weather, but with interest rates managing to remain low into the summer months, the outlook is promising, even if rates go up later in the year. Metrics like inventory and percent of list price received at sale are two of the better understudies to watch this year.
Download the complete Boulder Real Estate Market Update as a PDF[/ms-protect-content]