How’s the Market?
When someone finds out you’re a Realtor, of course the first question they ask is….How’s the market? And of course, they think the market is terrible because that’s all you hear on TV. So, here are some facts about the market here in Boulder. This data is for all homes (detached and attached) in Boulder City as of 9/27/2011. For perspective, the peak year in recent time was in 2004…the glory days, back when your house was appreciating madly each year and everybody was making lots of money in Real Estate.
Sales are about 60% of what they were in 2006
This year we’re seeing about 60% of the number of houses sold compared to 2006. That’s about 566 houses so far this year to about 946 in 2006.
We’re on a pace this year to have more sales overall than last year and last year was better than 2009. So that’s good.
So, it’s a much slower market than we saw from 2000 to 2008. Inventory is low and the overall number of sales is relatively low. But, it’s not getting worse here, it’s stablizing and improving.
Days on Market is 30% higher than 2006
In addition the number of days it takes to sell a house is quite a bit higher than it was a few years ago. This year for all of Boulder, it averages 122 days to sell. Last year it was 102 and in 2006 it was 86.
Inventory is Down
The number of houses on the market is 35% of what it was last year at this time in the metro Denver area. In Boulder it’s about 10% less than last year. That’s amazing. You’d think that prices would be up since the supply is down but no…
Prices are Flat compared to 2006 and down from last year
Compared to the rest of the country, this is good news. The median sales price of all houses in Boulder in 2006 was $534,000. This year is $539,500. It’s bounced around between $535,000 and $545,000 during that time. Prices are down about 2% from last year at this time.
So, the bottom line is that it’s a challenging time for Sellers and a pretty great time for Buyers. The only problem for Buyers is the lack of houses to choose from. A lot of Sellers are holding tight, since prices are so flat and waiting to sell so there’s not a great supply for Buyers to choose from.
Sellers have to be very realistic if they want to sell. It’s a hard nut to swallow, thinking that the house you bought 5 years ago hasn’t appreciated and may have lost value. Some areas in Boulder have seen some appreciation and some areas have gone down in value. Some of the rural areas and places like North Rim, Lake Valley and Niwot have taken some big hits.
To sell, the house has to be priced competitively and sellers still have to expect that it may take 3 or 4 months to sell. However, if the house is priced right, it will sell. We have willing buyers out there but they are looking for good values.
Remember, that 122 days on the market average is just that, an average. Plenty of people are selling in 45 to 60 days and there are lots more who aren’t selling until 200 or 300 days later when they finally are willing to lower their price to the current market value.