Housing was a Bright Spot in the Economy in 2012
After suffering through 6 years of downturns in the housing industry, things really started to turn around in 2012. Nationally, prices were up over 4%. You may have heard of big turnarounds in places like Las Vegas and Phoenix and different parts of California and Florida. Those of course were areas that took a huge nosedive in 2007 and had nowhere to go but up.
The Denver area has had some troubles but our market has been much more even keel compared to much of the country. We never dropped that low and our prices have been coming back gradually too. In the Denver metro area, prices are up 7% in the last 12 months, which is a big increase. Performance in Boulder County has varied and has been up in all areas of the County. Here’s a a brief summary of the Boulder/Broomfield County markets City by City in 2012 as compared to 2011.
Sales – Up 28% (Number of Sales of Detached Homes)
Prices – Up 5% (Median Sale Price)
Inventory – Down 32% (Number of Detached Homes for Sale)
Sales – Up 21%
Prices – Up 4%
Inventory – Down 21%
Sales – Up 25%
Prices – Up 11%
Inventory – Down 38%
Sales – Up 20%
Prices – Up 6%
Inventory – Down 21%
Sales – Up 38%
Prices – Up 8%
Inventory – Down 13%
Sales – Up 8%
Prices – Up 1%
Inventory – Down 43%
You can see that the number of sales are up across the board in the County, in most cases 20% to over 30% more sales than 2011. That’s pretty amazing when you see that the number of homes for sale has dropped so dramatically, 20, 30 and even 40% less than last year in Broomfield! There’s not a lot to choose from at the moment.
Given the low inventory, it makes sense that prices would finally start to move upward. Broomfield is the one exception, where the number of sales is only slightly higher than last year and the median sale price is up just 1% this year.
For Buyers, it’s been a challenging year. With the low inventory, we’ve seen a lot of multiple offer situations. It’s been hard to find houses at all and then when a nice one comes along, everyone wants it.
For most Sellers, it’s been a great year. If your house is in nice condition and it’s priced appropriately, it’s been easy to sell. In fact, we’ve seen lots of multiple offer situations. However, Buyers are still cautious and particular and don’t want to overpay. Consequently, houses that are priced too high, don’t sell.
It should be an interesting year. With inventory at all time lows and prices moving upward, it’s a great time to sell a home. Buyers are hoping that more sellers will put their homes on the market so they’ll have something to choose from. We’ll see how the year unfolds.