Well that was an exciting year for real estate in Longmont, Boulder County and most of the State of Colorado. Price recovery is in full swing and there are even hints of real appreciation since the downturn began in December of 2008 (5 years ago!). But alas, as salespeople, our wallets, bank accounts and bosses are all interested in just one thing. I call it the “What have you done for me lately syndrome”. That means that you can assume you got a pat on the back for the work you did last year or a pat on the behind for the work you didn’t get done. The syndrome takes hold precisely on January 1st when your sales report reads exactly $0 for the year and you have a long way to go to reach your goals. It really isn’t fair, but it’s reality. I hope in the commentary below I can help you embrace your new status and motivate you a bit to achieve your yearly goals. The trick here is that I’m going to do it with stats, numbers and potential.
Let’s start with the stats. Unless you have never read this before, you should know that you closed more deals in 2013 than in any year since 2005. A darn good achievement for sure. This is an even more remarkable achievement considering the unbelievably low inventory levels. In January of 2006 there were 662 houses listed for sale in Longmont; today there are 202. Back in ’06 there was a lot of new construction happening in Longmont…mostly up near Ute Creek Golf Course and in the Renaissance area. Today there is hardly a fraction of that in town. With less new construction, there is less competition for sellers than there was back then. Sales volume is up; days on market is way down; inventory very low, and there are rising prices in all price ranges. Look at the stats report, there is nothing on there that should concern a Realtor about the future. These are the market conditions we have all been waiting for for over 5 years.
Inside the stats are some interesting numbers. In the attached report, the Average and Median Sales Prices are for the month of December only. I calculated the average price for all of Longmont for the whole year and came up with $281,297…which is just a fuzz under the top of the market ($290k) in both ’06 and ’07. If you take all those sales over the year and do the math, there was just more than $354,700,000 worth of single family homes sold in town. Add in the $56+ million in condo and attached properties, you have about $410 MILLION worth of real estate closed in Longmont last year…not including new home sales and FSBO’s, none of which show up in the MLS. If sellers paid the going rate for a professional Realtor to represent them of 6%, there was atotal commission payout in town of $24,600,000!
December 2013 Longmont Area Stats
- Highest Yearly Sales Total since 2005!
- 29.0% increase in Attached Dwelling Sales
- 27.9% Decrease in Active Listings (202)
- 18.4% Increase in Average Sales Price ($313,455)
- 25.3% Decrease in DOM (59)
With low inventory, rising prices, steady interest rates, an ample supple of buyers, low competition from builders and at least $24 million in commissions up for grabs this year – right in your back yard – this is the year to capture more local listings and literally work around your house. Memorize a few of these numbers and take them to the streets to get as many listings as you can. Call everyone you know and see if they have heard any of their friend’s plans for the year and if they include the purchase or sale of a house. Start your marketing program again, and go out and meet with some people. The conversation will always turn to real estate and you will be prepared. There are Realtors in town who are already doing these things and they are the ones who are getting their fair share of a $24 million jackpot.
Peace and Love for the New Year. I am always available to help you with your business.