Millenials Love Colorado

Interest rates have edged up this year. The 30-year fixed rate is currently 4.75%, compared to 4.0% a year ago. Regardless, the real estate market in Boulder County remains strong. The number of sales so far this year are nearly identical to last year. In the city of Boulder specifically, the number of sales are slightly higher.  

Millennials love Colorado. It's currently the #3 state for Millennial relocation, with four cities in the top 25 destinations nationally.  Favorites include  Denver (#8), Fort Collins (#17), Colorado Springs (#20) and Thornton (#25). 

Boulder County cities are less popular among Millennials, and this is likely an affordability issue. We've been hearing about the "graying of Boulder" for years, but again, activity is high. Rising interest rates certainly impact first-time buyers more. It will be interesting to see if higher interest rates eventually slow things down. I'll keep tabs on the stats and let you know what I see.

If you want to discuss current market trends and ways to make the market work for you, p lease contact me. I am always here to help you, your friends, family and co-workers with any real estate need, even if they just want to ask a question. I hope you are having a wonderful summer. - Rich

Trends I'm Seeing

Some interesting changes in our market of late:

• The average price and median price continue to increase, but inventory (the number of active listings) has increased for the first time in years.

• The ratio of sales price to list price has decreased slightly, meaning sellers are getting slightly less at closing as a percentage of their list price.

• The percentage of listings under contract has decreased.

Our market has not necessarily hit the top, but increased inventory may be slowing the frenetic pace a bit. Rising prices have hit a convincing level, encouraging more owners to offer property for sale. Also, new construction in eastern and northern Boulder County is offering buyers more options.

The market is still hot in most price ranges, and as usual, the lower the price range, the hotter the market. It's too early to tell if increased inventory will continue or if the market will cool, but I will monitor the stats and keep you informed. As always, don't hesitate to call if I can help you, your family or friends with real estate, even if you just have a question. Call me anytime. - Rich

New Property Tax Assessments Coming

In Colorado, property taxes are re-assessed every odd numbered year and in the coming weeks you will receive an updated 2017 tax assessment which establishes the value of your property as of June 30, 2016.

Because property values in our market have increased dramatically over the last few years, it's likely you'll see a substantial increase in your tax assessment. (The Assessor's process is explained here.) During the study period for tracking values (June 30, 2014 to June 30, 2016), the average sales price of single family homes in Boulder County increased 26.8%, and the average sales price of attached dwellings increased 36.7%. 

The new tax valuation you'll receive is the starting point for calculating property tax over the next two years.  If you think your assessment is inaccurate, you have until June 1st to appeal. Take these steps first:

1. Make sure the assessor's objective information is accurate.  Check the square footage, the number of bedrooms and the number of bathrooms.  

2. Examine the details of the comparable properties the assessor used to establish your property value. It's not uncommon for the assessor to base value on unsuitable comparable properties. If you think this may be the case, call me asap and I will assemble a better set of comps for you to use in your appeal. 

The downside to the rapid appreciation we have all enjoyed on our properties in Boulder County is that property taxes are increasing. Most of your property tax dollars go towards funding public schools which is a good thing, but if you feel the Boulder County tax assessor is trying to get too much of a good thing, I am happy to help with your appeal. Call or email me anytime to discuss. - Rich