Happy September to all. It’s football season again and that means we get to see our beloved Broncos back in action. Just like kids going back to school, it seems to come earlier every year.
Last month we reviewed the noticeable slowdown of sales. Remember, this is a slowdown in sales volume only, at this point. With low inventory plaguing us for the past three years or so, overall sales have resembled a sluggish economy instead of an expanding one. Granted, employment rates are at their highest point in several years and incomes have not risen in tandem. Maybe that will come next because a normal reaction to high employment (or low unemployment) is that employers need to pay more to retain good employees. This happens mainly because it’s cheaper to retain a good employee than lose their productivity and go through all the hassle to find and train their replacement. Fingers crossed on this happening.
The graph I recreated this month is a follow up to last year’s graph from September, except this time, I included the data from both years. The results are very interesting and I think they graphically show what we all have been thinking about home prices in the area. If you look at the graph and focus on the 2016 numbers, it almost appears they have all shifted up one price range for 2017. In essence, this means that in 2017, sales have increased in every price range by about $50,000. This data is for the full year 2017 from January through August.
Since I had the data right in front of me, I updated the Year-to-Date (YTD) average sales price for single family homes in Longmont for 2017. As of the end of August, the YTD average sales price in Longmont is $425,758. As you may recall, back in January of this year, I made a prediction about the market and what it’ll do (look at the last paragraph from my post: http://bit.ly/2wcGjcd ). I said I’d eat my sock if we had only a 5% increase in prices over the course of this year. At this point we are sitting at an 11.23% increase. I guess all of you who told me to invest in some sock butter better think of your penalty for doubting.
As far as our local markets go, the biggest story is the continued rise in Longmont attached dwellings. A year ago we saw higher inventory and days on market due to all the new construction of townhomes being priced so high and sitting on the MLS for a long time during construction. Well, listings are way down and so are days on market. Prices are still climbing and so is the overall sales activity. As stated before, these homes now represent the affordable end of the market. This fact is proven by the higher sales totals every month and YTD. The shocking part of this is that the average price is still hanging around $340k!
I hope you enjoyed the summer. Mine was an interesting one that simply didn’t have enough golf involved. I’m OK with that because the move to First American Title has been nothing short of amazing. Jennifer, Lenise and I would like to thank those who have chosen to use First American for their title and closings. The support has been heartwarming and we are all settled in to our new office. Stop by some time for a quick tour and maybe we can grab a cup of coffee a couple doors away at Ziggy’s. You can find us at:
First American Title
512 4th Ave, Suite 102
Longmont, CO 80501