Hello again…
Lake Isabelle – Brainard Lake Recreation Area
Market Update Boulder CO Real Estate
and Surrounding Communities including Estes Park
Sometimes no change can be a good thing… stability, the known. From a real estate perspective, no change can be a good thing depending on which side of the fence is your side. For those sellers who survived the 2005 to 2011 decline in home values, bank foreclosures and short sales, the sun emerged in 2012. The Boulder Valley real estate market steadied itself. Inventory levels for available properties began to diminish as buyers once again became a viable part of the market. As inventory shrank, home values increased. Gloom and doom for home sellers became brightness and promise.
What about those poor buyers who were caught in this quickly escalating real estate market? For them, the good thing about no change was long term mortgage interest rates dropped to historic lows during this period of regeneration and stayed. In 2006, when the real estate market began to spiral down, the traditional thirty year fixed rate mortgage averaged 6.41%. In 2014 that same mortgage averaged 4.17%. At this writing, the rate is 4.25%.
Here’s a little simple math. In 2006, the average sales value of a residential property across the Boulder Valley market was $308,995. Assuming an 80% LTV at 6.41%, the monthly principle and interest payment would have been $1,547.84. In 2014, the average sales value of a residential property across the Boulder Valley market was $338,263. Again, assuming an 80% LTV at 4.17%, the monthly principle and interest payment would have been $1,318.60. The saving grace for buyers was stable mortgage interest rates.
After a chaotic rebound from the dog years of real estate, there appears to be some semblance of normalcy now within the Boulder County real estate market. Through May/2014 there were 1,658 residential property sales (1,170 single family homes and 488 attached units). Through May/2015 the number was 1,783 (1,260 single family homes and 523 attached units). That’s an increase of slightly over 7.5% in the total number of residential property sales.
Available inventory continues to an issue. There were 1,077 active single family home listings in Boulder County at the end of May/2015. That number was 1,003 at the end of April/2015 resulting in an increase of 7.37% month over month. Not a huge gain, but a beginning to becoming a more balanced market.
Real estate markets on the path to recovery are a bottom up phenomenon, where initially lower priced properties fuel the fire. As the intensity of the market spreads, higher priced properties begin to feel the heat from the flame and sales increase. We’ve been seeing over the past six months that homes priced over a million dollars in Boulder County have begun to sell more quickly. To date, Estes Park has registered one SOLD million dollar (plus) property this year.
Apartment Average Rent and Vacancy Rate through the first quarter of 2015: University…$1,582 and 5.1%; City of Boulder…$1,455 and 3.8%; Longmont..$1,244 and 1.8%; Broomfield…$1,313 and 9.2%. (Apartment Association Metro Denver)
Custom mountain home (4,848 fin sq ft) and ice hockey arena/equipment facilities (11,952 sq ft) on 43 serene and level acres…spring-fed pond…adjacent to National forest…near Boulder/Nederland CO….only a few minutes to Eldora Ski Resort. Just click for Photos, Property Description, Panoramic Tours, and Map…offered at $3,450,000.
http://www.realtor.com/realestateandhomes-detail/22955-Peak-to-Peak-Hwy_Nederland_CO_80466_M11193-35731
Our Google Plus Business Page: https://plus.google.com/111319006905760924632
If you are planning to move from your present home and/or purchase another this Summer, please contact us.
Bruce Royer
Equity Colorado Real Estate
Direct: 303-589-7168
TollFree: 800-373-1282
www.new.coloradosbestbroker.com
