Year End Report Shows 10.2% Jump in Average Sales Price
Happy New Year to you all. I hope 2018 is your best year yet. Thank you for reading my monthly stats reports. I hope to continue to be informative throughout 2018. This is the final regular stats report covering 2017, but you will see some additional reporting in the coming weeks. First, I will be updating all 2017 reports by adding REColorado data to that of IRES, which is all we’ve seen for most of the year. Also, the annual Housing Affordability Report will be coming out near the end of this month. Both of those will take a little extra time due to the lack of data share.
If you recall, a year ago I promised to eat my sock if our average price increase was under 8% (here is a link to the proof: http://bit.ly/2wcGjcd). I got called out by a number of people who thought I was crazy. The rising prices, low inventory, rising interest rates and lack of job growth were all reasons why I was supposed to get used to the taste of dirty socks. Cutting to the chase, I cleared it by 2.2%! Yes folks, another 10.2% climb in average sales price puts us at a 37.8% price increase since 2014 and that’s just for single family detached homes. The average sales price of a home in Longmont in 2017 was $421,836, up from $382,766. That is nearly a $40k increase. Yes, I know, it’s got good and bad written all over it, but consider this, the average price in Boulder only went up about $1,000 to $1.094M. I’d argue that Boulder is suffering more from rising prices, low inventory, etc., than we are.
If you are amazed at the average price growth of single family homes, then you will be floored by that of attached homes in Longmont. That average price only grew by 8.6% over the past year, but to put it in perspective, those prices have risen by a whopping 48.2% over the past four years. As in the paragraph above, I want to point to what happened in Boulder, the average price of an attached home over there FELL this year by about $28,000 to approximately $465k.
I’m interested to see the results of the upcoming Housing Affordability Study. My experience tells me that Longmont will again, be proven to be the most affordable town with the most available affordable homes in Boulder County. The interesting part will be the results of the other towns in the county, which I predict will see a bit of a leveling off of prices like in Boulder. Why? Value. When you can buy a 1,000 sf shoebox in Old Town Longmont for $400k and you think it’s crazy; those things are going for $600k and $800k in Lafayette and Boulder. There is a point when people look at the price difference and think Longmont still has value, comparatively speaking. But I fear we are finally reaching our own price ceiling. The next great value movement will be in the Carbon Valley. All that new construction will really start attracting homebuyers who see the difference in price and think that an additional 10 minutes of commute time is nothing when they can save 2, 3 or $400,000.
2017 was an exciting year for many reasons. I have several personal milestones and achievements to reflect upon. Not only did I make a move to First American Title with Jennifer Engelking and Lenise Jacobs, I turned 50, played Pebble Beach for the first time and didn’t have to eat a sock. I hope you all reached your goals in both life and business. My wish is for your continued success. Whether you use First American Title or another company for your title and closings, we are all in this business together. If there is anything I can do to help you with your business, please feel free to give me a shout, maybe one day I can earn your business too. Thank you, from all of us at First American Title for the support and friendship you’ve shown to us. Our success is a reflection of your success.
Peace to All,