Sales of single-family and attached homes were strong in April.
Single-family sales year-to-date were up 9.4 percent and attached homes increased 18.9 percent. These increases are remarkable when you consider that the number of homes actively listed for sale is down 34.7 percent from April 2014.
The inventory shortage combined with increased demand is resulting in rapidly rising prices. The average price for a single-family home in Boulder is $936,335, while the median is $759,516. Louisville’s average price is now $533,530 and the median is $499,000.
Appropriately priced home are in such demand that it is not uncommon for a new listing to have 15-plus showings during the first 24 hours, resulting in more than a half dozen offers being submitted. Properties are frequently under contract in less than five days. Sellers are so desperate to improve their offers that they are dropping normal contingencies, such as inspections and appraisals. Buys with cash are trumping offers with financing contingencies.
Not all segments of the market are hot. Sales of single-family luxury ($1.2 million to $1.9 million) and ultra-luxury ($2 million-plus) homes in Boulder have slowed down from earlier in the year. The market is more balanced with higher inventory levels than at lower price points. For luxury homes there is a five-month supply, while in the ultra-luxury category the supply is more than 20 months. The good news is that the prices for these homes have risen significantly.
Outside Boulder, in the mountains or on the plains, luxury and ultra-luxury homes continue to struggle with limited sales and high inventory levels. Those markets continue to be buyers’ markets where significant price reductions are being negotiated prior to going under contract.
The Boulder market is strongest below $1 million, while Broomfield and Erie are hot under $500,000. Lafayette and Louisville have limited inventory under $750,000, and as a result sales are strong. Attached homes in all the markets are strong except in the luxury and ultra-luxury segments.
Higher property valuations and the “seller’s market” make it a great time to sell your home. It is also a great time to buy because prices are rising and mortgage rates are historically low.
David W. Scott heads the Scott Group at Colorado Landmark Realtors. Contact him at 303-443-5163 or email@example.com.