Average Price in Longmont dips Below $400k for 1st Time in 2017
Happy Monday and Happy Fall y’all! The stats are ready and I have a couple of other things for you that may be of interest. Grab another cup of coffee and get ready for a beautiful week ahead.
There is so much red (negative numbers) on this month’s report, it looks like it’s bleeding. Red colored numbers are good when they are next to the Days on Market results, but not so much on the rest of the report. The numbers are so drastic I am going to have to look into a couple more items for next month because something just doesn’t seem right. The things I’ll bring to you will be a look into the amount of new home sales and I’ll even take a peek at the sales only being reported in REColorado.
In the meantime, the biggest topic of discussion is how things are slowing down and what an odd year it’s been for home sales. The market is moving in fits and spurts, and completely unpredictable. Remarkably, this is the first month since January that the average sales price of a single family home in Longmont has dipped below $400k. And even more amazing is that it is exactly one year ago when the September 2016 average price first broke $400k to set an all-time high water mark. Overall, average and median prices are still strong and higher than last year in all areas of this report… they just aren’t rising as fast as we’ve seen in the past four years.
We are still three months until the end of the year, but I want to point out one thing about this months’ graph. The graph is only showing the number of closed sales each month over the past 10 years. The first thing that’s easy to notice is the height of each of the peaks. The height this year, compared to last, is not much different. The last two years, compared to the previous four, are obviously lower and we attribute this to both rising prices and lower inventory. But if you look at the width of this years’ data, it’s very narrow. If you could see the data behind the graph, you’d see that it’s actually the lowest Year-to-Date total since 2011.
Where is this market headed? Obviously I don’t have all the answers and there is no magic pill to understand it. However, there is one yearly event I never miss to help in my understanding of what our future holds. If you’ve not been to the Boulder Valley Real Estate Conference put on by BizWest, you are surely missing out on the very best event of the year. This can’t-miss event always has a very light showing of Longmont area Realtors and I just don’t know why. Yes, it’s in Boulder, but it covers every part of our market and every town in Boulder County. It isn’t a bunch of CE classes, it’s in-depth analysis of what drives our residential and commercial markets. Every professional should be there. Believe me on this one and get your tickets here: http://bit.ly/2wBx1aX.
The last item I have for you has to do with the possibility of Amazon coming to Colorado. I’ve thought about what would happen if they moved to the proposed Louisville location. That move would turn this region on its head. Here is a good news story that will make you think about the depth and breadth of the possibility: http://bit.ly/2yucjOT. The Denver Post had a great article on this topic that you can read here: http://dpo.st/2hReCEr. We are now possible victims of our own success.
Enjoy the snow,