2015 Market Review

The real estate market in Boulder County was smoking hot in 2015. The inventory of available properties has been decreasing steadily over the last few years and the number of single family homes for sale in Boulder County decreased an additional 3.8% from a year ago, with attached dwelling inventory down an incredible 42.5%. Demand outpaced supply again this year and the 30-year fixed interest rate remained near record lows hovering around 4% all year, a recipe for appreciation. The median price went up 9% for single family homes in Boulder County this year and went up 15% for attached dwellings. Some highlights from around the county were single family homes in the City of Boulder with a median price up 15%, single family homes in Longmont up 14%, attached dwellings in Louisville and Longmont up over 20% and attached dwellings in Superior up 34%.

Although interest rates have recently started to rise,the rate increases will likely be gradual. All signs are that 2016 will look a lot like 2015: low inventory coupled with low interest rates resulting in a competitive buying environment and more appreciation. I'm predicting a very active first quarter, based on pent-up demand and very low inventory. The first quarter is traditionally an excellent time for sellers to be on the market and 2016 should be no exception. For buyers, being in the market early in the year in order 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 2015. Wishing you and your family a Happy Holiday Season and prosperous New Year! As always, thank you for your support, both through your business and your referrals.

September Heats Up

Multiple offers are still the norm as of late September for well-priced homes, especially those at or below median prices. Based on current activity, I don't see the market slowing down as we move into Fall.

A recent survey by the National Association of Realtors showed that buyers are most concerned about the lack of available houses, not the threat of rising interest rates. Another recent survey showed that rents in Boulder and the surrounding areas are increasing at the highest rates statewide. Zillow reports the breakeven horizon (the number of years a renter must live in a home before ownership becomes a better financial proposition ) is 2.7 years in Boulder and 1.4 - 2.4 years in the surrounding areas. See the full details here.

Based on these stats and with interest rates unchanged for now, it's no wonder the market remains hot with more buyers than sellers. It's a great time to be a seller. As rents continue to rise, buyers (homeowners and investors) should likewise act sooner than later.

Aggressive Tax Assessments

I've been getting a lot of calls and emails about recent property valuations. As you may have noticed, the valuations are aggressive. This is not surprising since during the study period for tracking values (January 1, 2013 - June 30, 2014), the median price of single family homes in the city of Boulder was up 22.8%, Louisville was up 28.4%, Lafayette was up 14.6%, Longmont was up 16.7% and Superior was up 13.9%. The new valuation is a starting point for calculating property taxes for the next two years. If you think your assessment is inaccurate, you have until June 1 to appeal. Take these steps first:

1) Make sure the assessor's objective information is accurate.

Check the square footage, number of bedrooms and bathrooms.  

2) Investigate comparable properties.

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.