|
YOUR RESIDENTIAL PROPERTY MANAGEMENT EXPERTS |
|
As we approach the end of Spring and prepare for Summer, our real estate market continues to feel much like it did in the Fall. Our market continues to gain steady strength and traction, with positive indicators that should continue to provide us with near term appreciation. As members of the National Association of Residential Property Managers (NARPM), our Denver Chapter hosted an Economic Update that featured an Economist from the Colorado Division of Housing. He confirmed and forecasted, through several variable metrics, that we should expect to continue our recovery in the Real Estate and Property Management sectors. Developers are still challenged with financing from banks to start breaking ground on new construction projects, and potential homeowners are similarly challenged in achieving the premium interest rates available with existing stringent bank loan requirements. The market imbalance of supply and demand is projected to remain with us for a few more years, resulting in continued strong demand for rental property and strong rental rates; until developers can build out to relieve the existing imbalance.
The inventory of homes available on the market remains at historic lows, which allows The Law of Supply and Demand to enable strong Rental Rates and Sales Pricing. Buyers are lining up to review newly available homes, and we're seeing multiple offers and bidding wars on properties for sale. Incredibly enough, owners who would like to sell and move up or down in home size are concerned of being homeless by selling their home quickly and not being able to procure a new home in time; thereby adding to the lack of inventory on the market. Tenants are calling into our office 60+ days in advance to tell us they would like to renew their leases, as the available inventory for rental properties mirrors the low inventory levels of properties for sale. Owners/Investors that wish to sell are enjoying a Sellers Market, while those who continue to rent out their properties are enjoying a Landlords Market. |
April 2013 Boulder Area Market Sales Statistics |
By clicking on this link, you'll access the Boulder Area Realty Associations April 2013 statistics on Year over Year comparisons on Housing (Single Family Homes) and Condo/Townhome Sales broken down by town in Boulder County.
The Median Sales Price provides a more accurate sales figure over the Average Sales Price, resulting in near across the board increases in price over 2012's figures, while the Average Days to Contract figure enjoys a near universal drop as well.
As noted, the inventory of homes available for sale remains very tight. As of mid-April, there were 663 single family homes available for sale across all of Boulder County, an amount down just under 58% when compared to the five year average. Amazingly, we have only 43 additional single family homes for sale as compared to the number we had at the start of January. There were 599 homes under contract during this same time period, an amount 20% greater than the five year average. The total number of single family homes on the market, both available and under contract is 1,262, an amount 39% below the five year average.
Boulder area single family home sales in April 2013 improved by 13.9% over April 2012; 392 units versus 344. And, condo and townhome sales grew a healthy 26.7%; 128 units compared to 101. Month over month sales have also shown solid improvement. Single family home sales grew by 24.4% in April 2013 compared to March 2013; 392 units, up from 315. Condo and townhome sales saw a 16.3% gain from 110 units in March to 128 in April. Inventory trends continued in April 2013 showing a 30.2% drop when compared to April 2012; 1346 units down from 1930. A somewhat smaller drop was experienced in condo and townhome sales, down 23.5%, 444 units compared to 581. For the fourth consecutive month, month over month inventories improved modestly. Single family inventories grew by 5.4% in April 2013 compared to March 2013; 1346 units up from 1276. Condo and townhome numbers are 444 versus 401, a 10.7% increase.
Unfortunately, one of the things that seems to get lost in all the talk and indicators of the current market strength is a sense of the past. Yes, the market has substantially improved over where it was, and all indicators and trends suggest continued cautious momentum and appreciation in the right direction. No, that doesn't mean that a particular home or area has recovered all of the value it may have lost during the downturn, contingent upon when it was purchased and for how much, and taking into account its loan structure.
It's not uncommon for me to communicate with Owners and Investors who will lose money on the sale of their home in this market. With strong rental rates and demand it may be beneficial for those individuals to retain those homes as a rental and revisit their appreciation with me a year from now. The sale itself will happen quickly and will have few issues due to current market strength, but the ultimate bottom line including transaction costs may not result in a positive financial transaction. I anticipate that this class of seller will continue to recede as we move through the year.
If you have any questions or concern's on the value of your property, or are thinking about selling, please be sure to let us know; as I'm happy to serve as your reference and resource for your Real Estate needs. My email is Kevin Chard (kevin@phoenixrealtyinc.com) and I may be contacted in the office at 303-666-4300; I look forward to working with you!
*All data taken from April 2013 Boulder Area Realtor Association |
|
|
|
|
Copyright � 2013. All Rights Reserved.
|
| | |
