Local Real Estate Market Primed for Summer Surge
It is with a heart filled (finally) with blue skies and a head filled with dreams of golf that I wish you all a happy Spring! There is joy in nearly all nooks and crannies of the real estate business right now. Look at the record sales for April; the low inventory that is pushing prices up; the high sales activity in the outlying areas; what more can you ask for? The Realtors, lenders, appraisers, inspectors and title companies are all busy. Sellers are getting more than they were last year. Buyers are paying more, but they are still paying less than they were several years ago, so they are still getting a bargain – in an UP market…that’s the best of all worlds.
There are a couple of things that seem just out of place in this month’s report. The first is the low number of sales in the Longmont Attached Dwelling market. Part two of this issue is the dramatic median price increase. I took a peek into this situation and found a little data to explain these phenomena. First of all, the low sales total is a direct result of low inventory on the low end…it just isn’t there to sell. If you think there is low inventory on lower priced homes, the inventory of lower priced attached homes is minuscule. And, why do some people choose to buy an attached homes, besides some of the convenience factors? Price. And if there are none to sell, none will be sold. I believe that is our current scenario.
A little deeper look into the sales prices of attached homes in Longmont does not prove that this low inventory is the sole factor in driving up the prices. It’s more of what has been presented to me several times as: it’s more a representation of where the activity is. If there are no lower priced homes to sell, and only higher priced homes sell, does that mean that prices have risen because of the average and median going up? No. It just means there is more activity in the higher price points, thereby driving up the numbers. Proof of this is in 2012 there were 11 attached dwelling sold for under $100k in the 1st quarter of the year. In 2013 there were 3.
Get the full report below
The last “concerning” issue is that of the median and average sales prices in Area 5, the Boulder County Plains. They just seem a little low and out of step with the rest of the report. This area is all the land between Longmont and Boulder – minus Gunbarrel. In this area there are a variety of properties, from small shacks to multi-million dollar estates, which includes Lyons, Erie, Longmont, Niwot and some of Lafayette. It’s the proverbial smorgasbord of real estate and less homogeneous than say, a city. The following numbers may lay your concerns to rest: $422,272 for 2012, and $444,000 for 2013. Those are the Year To Date median sales prices for the area. Fret not my friends, it’s just another one of those monthly swings, which are most extreme in this particular area. And here are the averages for the record: $525,734 for 2012 and $561,768 for 2013…nearly identical increases in both metrics.
May 2013 Predictor says: 128 single family units sold in Longmont. April was 109 and we easily handled that one with 111 sales.