Longmont Home Prices Surge to $201 per Square Foot
We meet here, month after month, year after year. We watch and talk about the increasing prices in Longmont. We are now solidly into the $450,000+ average price range, so I thought it would be a good idea to graph the year-to-date sales by price point. I’ve done this in the past, but this one is just a bit different. For the first time ever I included both single family and attached homes, plus this version has several more price categories. I think it tells a bit of a story.
As prices march north and buyers gasp at the averages and call Longmont an expensive place to live, I think we should consider the information presented in this month’s graph. To have only 14 homes sell below $250,000 isn’t a surprise…because we know lower priced homes disappeared over the past few years. The one thing that did surprise me was that only 21 homes sold for over $700,000, with the top sale at $1,180,000. It seems every time I look at listings and sales there should be more transactions in this upper end. After I did a little math on these numbers two specific items of note became clear. The first is that 66.2% of all sales (342 of 517) are below the average of $450,000. This is a good example of how large sale prices can influence the average upward. The other item is good news because 32.7% (169 of 517), or darn near one third of all sales, are in the affordable range of under $350,000.
Welcome to June! June is the new, new-listing month. Five years ago May was the top month of the year for new listings, but over the last two years the month of June has taken top honors. More good news, I hope, is that May of 2018 was higher than the past two Junes for new listings, so if June continues its dominance we should see a bunch coming on the market soon. This could be great for buyers struggling to find the home of their dreams.
Take a look at the crazy numbers for Longmont attached dwellings. If you watch these stats regularly the results here don’t make much sense. We talked before that rising prices and low inventory are affecting the sales totals, but those prices and days on market seem off. It turns out there were 3 new construction attached homes on the market for 126-219 days and priced from $483k – $676k. If you take those outliers out of the equation, days on market goes back to mirror the rest of the pack at 33 and average price drops to $311,000.
Speaking of looking odd, what’s the deal with the average days on market in area 5? We know higher priced homes usually take longer to sell and there are typically a bunch of them in that area, but 73 days seems excessive when compared to Boulder with its $1.238M average price and 44 days on market. There were 9 homes sold in area 5 last month that were on the market for over 200 days and of those 9, 5 were under $1 million priced from $396k and $763k. If you take all 9 out of the equation, days on market in area 5 drops to a reasonable 46 days. Interestingly, that $396k sale was a mobile home on two acres and active for 304 days. Hmmm.
A string of final thoughts. Firestone, Frederick and Dacono had a total of 2 homes sell below $300,000. Longmont had 6. **In May, the average price per square foot of a home sold in Longmont came in at $201/sf (first time ever over $200/sf), but it’s clear that buying a smaller and less expensive home is not much of a bargain on a price/sf basis. The buyers of those 6 homes sold for an average price/sf of $307! **The least expensive home to sell in Area 5 was a 1,200 sf, no basement home for $375,000.
I hope your summer is off to a great start.