A look at the current real estate market
Provided by Rene Vellinga RE/MAX ALLIANCE
Late summer is when people, especially children, begin to realize those carefree days of sun and surf (maybe not in Colorado) are on the wane. A touch of fall can be felt in the early morning air. Tree leaves take on a bit of red and orange color. Another summer has passed and we weren’t aware it was happening.
For the Boulder Valley real estate market this summer has been characteristic of many Colorado summers. Buyers attempting to purchase and move-in before school starts. Sellers hoping to sell and be on their way to wherever they are going before the snow begins to fall. Moving trucks nestled against the curb along neighborhood streets. Kids needing to make new friends.
A little history.
In all things, real estate is a comparative process. How many homes sold this year versus last year? How much did they sell for compared to last year? How quickly are homes selling now versus the past? What are mortgage rates today as opposed to six months or a year ago?
The year 2005 was the Golden Age for the Boulder Valley real estate market. Single family homes and attached unit sales peaked. Home values were increasing at a double digit rate. Multiple offers were the norm. Days on the market were nearly non-existent. Plant a for sale sign in the yard and stand back from the onslaught of prospective buyers. Scarcity prevailed.
Mortgage interest rates were around 5.75% and trending up. The other side of the mountain. The downhill side was making its presence known and the Boulder Valley real estate market began a slow then somewhat rapid descent. Home values were impacted negatively. It took longer for homes to sell. Mortgage interest rates tickled the 7% range. Neighborhood bank foreclosures and short sales became the topic of discussion around the office water cooler.
The years 2009 to 2011 were a period of stabilization in the Boulder Valley real estate market. The bottom of the pit, if you will. Things began to improve. Builders resurfaced and started to construct new homes on previous platted lots. Buyer’s confidence returned. Home values inched up. Sanity prevailed.
In 2012 the Boulder Valley real estate market shifted gears. Climbed out of the pit. Saw the light. That comfortable thirty-year fixed rate mortgage dropped to below 3.5%. It was a miracle. The floodgates opened. It was a time of great prosperity … for some.
A little now.
With fall on the horizon, it’s time to take a brief look at the Boulder Valley real estate market today. Single family home sales are down slightly when compared to last year, around 10%. Attached unit sales are much the same as last year. The overall market appears to be relatively stable with single family homes selling in a reasonable amount of time – 139 days year-to-date. 2013 ended the year with an average of 71 days on the market, so home sales are moving at a slower pace this year compared to last year. Interest rates vacillate between 4% and 4.5% for the traditional thirty year mortgage. Home values have moved up slightly over the course of the year, but appear to be settling at this time. Normalcy prevails.
Work with a Realtor who KNOWS the local real estate market. I am here to help!