Wow! I’m so excited for the new year and what it will bring to each of us. I’m also excited that there is so much to write about this month. I hope everyone had a happy and safe holiday season. It was fun and interesting at the Snyder house… as always. I hope you have your goals and plans set to make 2020 your best year yet. If not, let’s talk, no judgement. Promise. Now, let’s get started!
Something new and exciting is a planned Realtor stats presentation and market discussion that’ll be held monthly at 300 Suns Brewery. The 1st one is January 9th, 2020 at 3pm where we’ll review the previous month, previous quarter and previous years’ sales results. We’ll also peek at the upcoming month, quarter and prognosticate over the year ahead. There will be plenty of time for questions, discussion, any announcements you want to make and refreshments (beer, soda or water). CLICK HERE for the flyer and all future dates.
Thank you all so much for the positive response to the video I made for our office. With no further ado, here is the next one. Make sure you know where to take your client to celebrate a successful closing!
As a rule, December is a slow month. Buyers don’t want to move in the snow and ice. Sellers don’t really want to show their home during the holidays. Agents like to take time for their families and regroup for the upcoming year. So, if everyone in the transaction isn’t all that interested in participating, why did we just see the 2nd highest December sales total since 2005? Every area in the report saw dramatically higher sales totals over the previous December. If you think about it, most of those closings went under contract in November and there was a huge snowstorm on the 26th, effectively wiping out the last week of the month.
The great things in the December sales report start with the fact that 3 of 4 areas had higher yearly sales totals than in 2018. It continued with inventory that generally
went up, but not so high that there was a glut of homes. And the icing on the cake was that average and median prices ended the year like they started it, slightly up here and slightly down there. Check the year over year report below for the best possible news.
Last January I received so much great feedback on the new chart that I created that I updated it for this year. I used this information several times while coaching agents and educating consumers to understand the wealth building opportunity in owning a home. The math is solid on this and naysayers like to point back to the previous peak of 2007 when everything went south. If I could go back to 2007, I’d buy absolutely everything I could. How is our levelling of prices any different now?
Speaking of leveling of prices. Let’s look at the 20018 vs 2019 Full Year Stats. Click on the links below to get your copy now. The single most important item on this report is the average price change from 2018 to 2019 for Longmont Single Family Housing. In case you haven’t heard we are in a housing crisis here in Longmont. Longmont is still the least expensive place to live in all of Boulder County, but with an average price of $470,107 in 2019 we are twice as expensive as the average home in the United States. We all understand that we live in Boulder County where we’ll see fewer and fewer new homes built in the area, which limits supply and drives up prices. There is no changing this fact. However, when prices increase like they have over the past 8 years, it’s nice to see an average price increase of just 1.8% like we had this past year.
I’d have to admit I’m positively excited about our leveling of prices. Think about what we’d be facing if we’d have gained another 10% like last year. We’d have an average sales price of about $507,000! That steep rise would effectively push the goal of owning a home that much further out of reach for a young couple. This is the first time in years where the median wage increase outpaced the increase in the price of housing. Combined with currently low interest rates, real house prices are lower than they were in 2000. For more on real house prices and purchasing power read what our Chief Economist Mark Fleming has to say here: What Will Drive House-Buying Power in 2020? And for the record, I agree with him.
Next month we will make some bold predictions about 2020 and preview the trends that are commonly found in the first quarter of the year.