1st Quarter Stats Explain A Lot

I've been eagerly awaiting the 1st quarter stats to see if they contain some clues about the intensity of the current real estate market. After 5 years of steady appreciation, the market was expected to start leveling off in 2018. So far, it's done anything but.

The stats revealed that the number of new listings in Boulder County through the 1st quarter of 2018 compared to a year ago is down 14.1% for single family homes and is down 6.4% for attached dwellings. But, the number of sales increased 2.7% for single family homes and increased 0.3% for attached dwellings. It's no wonder we're seeing multiple offers and rising prices. 

Fewer properties on the market combined with an increased number of sales means appreciation. The median price for a single family home in Boulder County is up 9.6% to $592,000 compared to a year ago, with the  median price for an attached dwelling up 9.2% to $393,000.

If the inventory of properties for sale remains low, prices will continue to climb. If an increased number of properties are listed this spring and summer,  the market could level out a bit. We'll see what the next few months bring and I'll be sure to keep you informed. In the meantime, don't hesitate to call at (303) 931-6979 if I can help with a real estate transaction or simply answer a question.  - Rich

2017 Review & Some Predictions

Our real estate market was hot again in 2017. A few highlights:

• Surrounding cities in Boulder County outpaced the city of Boulder as far as appreciation. Looking at the county as a whole, the median price of single family homes and attached dwellings increased by an average 7.3%. Meanwhile in Boulder, the median price of single family homes increased 2.4%, with attached dwellings decreasing 3.6%.  

• Boulder's lower appreciation compared to the rest of the county should be seen as a reflection of affordability, not desirability. Boulder's decrease in the median price of attached dwellings should be seen as a correction, because it increased by an astonishing 32.7% in 2016. 

• The inventory of homes for sale increased throughout our market in 2017, but the number of sales increased as well, indicating that demand continues to outpace supply.  

• The 30-year fixed interest rate varied between 4.25 - 4.5 percent the first half of the year, and settled down to 3.875% - 4.125% percent the second half of the year. Despite the slight drop, experts predict that the 30-year fixed rate will rise to 4.5% in 2018.  

Considering the future:

• All signs are that 2018 will look a lot like 2017: low inventory coupled with low interest rates (by historical standards) resulting in a competitive buying environment. 

• This rule of thumb will remain: the lower the price, the hotter the market.  

• The City of Longmont is still the most affordable market in Boulder County and had the highest appreciation of single family homes in 2017 at 9.8%. As a result, single family homes there will likely outpace the rest of the county in appreciation in 2018. 

• I'm predicting a very active first quarter, based on the number of buyers I'm meeting who are starting to look now as part of a planned move in 2018.  

The first quarter is traditionally an excellent time for sellers to be on the market and 2018 should be no exception. For buyers, being on the market early in the year to get ahead of appreciation is a good idea. If you or anyone you know is considering selling or buying, I'm happy to help. 

I hope you had a great 2017. Wishing you and your family a happy holiday season and prosperous New Year! As always, thank you for your support through your business, your referrals and your friendship.  - Rich 

Whole Foods & Trader Joe's Boost Real Estate

According to a Zillow study, the average price of homes nationwide within 1 mile of a Whole Foods or Trader Joe's increased 144% between 1997 and 2014 compared to a national average of a 70% increase in home value between 1997 and 2014. The average price in Boulder increased 191% between 1997 and 2014 while the average price of homes within 1 mile of Whole Foods and Trader Joe's (28th and Pearl) increased 234%.

The article by Zillow concludes by pondering whether both chains are either incredibly smart about finding neighborhoods on the verge of gentrifying or whether  the opening of either location positively impacts home values. I would say that both Whole Foods and Trader Joe's are smart about finding neighborhoods on the verge of gentrifying. After all, who would have guessed years ago that the area around the old Crossroads Mall would be considered the hip and central location it is today? Read the full article.

I hope you and your family are enjoying the final days before school starts. Please don't hesitate to contact me if I can help you, a family member or a friend with any real estate needs, even if they just want to ask a question. - Rich