With the Summer coming to a close and the school year starting again, many people consider this time of the year a “slow” period in the real estate market. Throughout Boulder County and the surrounding communities, this really is not the case.
Over the past few years and continuing this year we are seeing a large pool of buyers fighting, with a vengeance, for the remaining available inventory through the fall. The current single family
inventory is sitting at 2.5 months of supply, whereas last year at this time there was a 3.5 months supply.
According to the National Association of REALTORS (NAR) a “balanced” market is when neither buyer nor seller holds an advantage. This balance is generally found when a market has between 4-6 months of inventory. So we are definitely in a Seller’s market.
Single Family Home Prices in the City of Boulder increased Year-to-date almost 14% increasing from $111,387 over one year ago. The median sales price increased $78,000, or over 11% during past 12 months. The median price for a single family home in Boulder is now $750,000, a huge jump over last year which was around $670,000.
NAR reports that the Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.The chart below indicates the affordability of townhouses compared to single family homes in Boulder County.
As the prices for Boulder County continue to rise single family homes become less affordable for the average household. Therefore, more Buyers are looking at Attached Townhome and Condo style homes.
With the influx of Buyers looking towards attached homes the supply is becoming more scarce. That is because, on average townhomes are generally been more affordable than a comparable single family home.
Right now there is only a 1 month supply of attached homes or townhouses throughout Boulder county! Accordingly, we are seeing Sellers demanding higher prices for their attached properties, and they are getting it!
The percent of list price received is 102%, and the median list price of town homes has increased by 15.9% from last year! Single family homes in Boulder County only increased by about 7.5% year-to-date.
With all this booming growth, we continue to hear the question, “is Boulder in a bubble?” We don’t think so. This can be confirmed by checking the trends for Boulder County’s historical home value appreciation. Of course there was a dip in value for the years 2009-2011 as seen below.
However, the graph also shows years where our area climbed significantly in value like 1991-1994 and 1999-2001. We are in another one of those climbs.[/ms-protect-content]