July was the strongest month of this year for residential sales in Boulder and surrounding areas. Sales for single-family homes rose 11.8 percent and attached homes were up 2.9 percent over June. Property listings decreased 3.6 percent from June, property under contract rose by 11.7 percent. This data reinforces the fact that the housing market in the Boulder area continues to improve.
For property below $750,000, the low number of listings is putting upward pressure on prices. Well-priced property continues to sell quickly at prices above those of last year. Some homeowners see this as a reason to wait until next year to list their properties. That may be a good strategy, but rising interest rates may result in fewer buyers in 2014.
The market below $1.2 million continues to be strong in Boulder, Louisville and Lafayette. For Longmont, the suburban plains, Superior and Broomfield, the market is vibrant below $750,000. Sales in the mountains are generally soft and get weaker as prices increase.
As in June, the single-family luxury market ($1.2 million to $1,999,999) and the ultra-luxury market ($2 million-plus) showed good sales. Boulder had eight luxury sales and four ultra-luxury sales. However, the luxury attached condo/home category with five sales in June declined to two sales in July. The ultra-luxury attached condo/home segment had no sales for the second consecutive month.
The Boulder Valley market is generally strong in the major segments that offer mainstream pricing. There is no single evaluation that applies to the market except that it is stronger than a year ago. From a seller’s point of view, the mid to lower portion of the market is good to great. From a buyer’s viewpoint, there is too little inventory in that segment and prices are rising. In the luxury end of the market, sellers need to be ready to negotiate on price and buyers have a good selection from which to choose.
In summary, it continues to be a good time to sell for a majority of the market. It is a good time to buy while interest rates are still historically low and will most likely continue to trend upward. The future is difficult to predict, but most experienced Realtors acknowledge that next year may not be as good for sellers and that buyers will find borrowing more expensive – which translates to less home for your money than at present.
Last month I stated that it is a good time to buy and sell, and that is still true. Don’t wait; the window of opportunity will not last much longer.
David W. Scott, principal broker at the Scott Group of Colorado Landmark, Realtors, can be reached at 303-588-8358 or firstname.lastname@example.org.