Economic Snapshot
A look at the current real estate market; provided by RE/MAX ALLIANCE
September/2010
As the announcer in baseball likes to say when one of the Rockies hits a home run: “You can kiss it goodbye!” Well, that’s about all that can be said about this summer of 2010. Poof! It was over before we even knew it. Now comes the fall; filled with football games, warm days and cool nights. Change is in the air.
The Boulder Valley real estate market limped along through the summer months. No longer bolstered by the Federal government’s tax payer incentive program, home buyers and sellers were left to survive on their own. Mortgage interest rates dropped to historic lows, which spawned a plethora of homeowners interested in refinancing. Problem was, home values had slipped and appraisals were coming-in low; leaving many homeowners on the sidelines (or in the dugout) unable to take advantage of lower rates.
There is some good news on the Boulder Valley real estate landscape. Year to date sales of single family homes and attached units are up slightly over 13% through August/2010 as compared to August/2009. Although some degree of that increase is a result of the Federal tax payer incentive program, it does show evidence of buyer confidence in the market. Another positive sign is the chart below, which is a brief overview of average single family home values for the Boulder Valley area for the past couple of years. (Information is from IRES, the Northern Colorado MLS.)
2009 2010 (Thru August)
Area Average Sales Price Average Sales Price % Change
Boulder $647,751 $654,723 +1.01%%
Superior $413,935 $414,007 No Change
Louisville $394,573 $451,710 +14.48%
Lafayette $352,884 $352,833 No Change
Longmont $241,041 $255,259 +5.90%
Suburban Plains $509,094 $545,155 +7.08% Suburban Mtns $417,035 $406,372 -2.56%
Broomfield $354,514 $368,465 +3.93%
========= ========= =======
Average … $405,502 $432,297 +6.60%
On the surface, Boulder Valley home values have stabilized and are (on average) improving in most geographic areas. At this time last year, through August/2009, home values were down approximately 5.53% as compared to 2008.
Real estate markets are composed of peaks and valleys; ups and downs. Between the peaks and valleys are plateaus. This is where a calmness normally prevails. People aren’t fighting the currents of change. They have become more accepting; more realistic. This may be where the Boulder Valley real estate market is today.
From a real estate perspective, we may never again see the past in the future i.e. annual double digit appreciation of home values followed by annual double digit depreciation of home values. There will always be opportunities in the real estate market to make money. They exist today, but they are predicated on a person’s willingness to wait. How long that wait might be is unknown, but, for some, their patience will eventually be rewarded. They’ll hit a home run!
Thanks to Dan Johnson Re/Max Alliance Louisville
