We’ve never seen a report quite like this one before. When you think about what we are looking at, it makes sense, logically. There are a couple things I’ve not seen in 15 years of reporting on real estate sales in the Greater Longmont Area. What these results mean for the near future of real estate sales is still a matter of debate because we are in such a unique position.
Click one of the links below and pull up this month’s report. Let’s start with the graph in the middle. It’s an eight-year view of monthly single-family listings in Longmont. The high point and the low point are marked for each year. You’ll notice these points occur within the same month or two every year. You will clearly see we are at the lowest point in the past 8 years. It’s probably the lowest point since before the building boom that started in about 1997 when Ute Creek Golf Course was built and the subsequent development of Spring Valley, Fox Creek and Wolf Creek on the northeast side of town.
Not only are we at an 8-year low for January listings, our high point of 282 listings in in June of 2020 was the lowest high point in the same time frame. For perspective, in July of 2007 we had 894 listings! Remember, I report active listings as anything that isn’t sold, so there are under-contract and pending units in here…because they aren’t sold yet. We have limited room on the stats report too. If we focus on just homes that are active, I pulled stats on Feb 3rd and there were 30 single-family listed – two were income restricted, four were over $1 million, two were under construction, one is a church, and another was vacant land. Remarkable to say the least.
More from the “Never Seen It Before” category. In all four result grids, the percent change in the top four lines are all negative (red) and the bottom two are positive. That’s amazing and never seen before, but that’s the part that makes sense: the lowest inventory in history is going to make for fewer sales, and with demand as high as it is, we’d naturally see fewer days on market and higher prices. This is a classic display of demand outpacing supply, but the consistency over all four markets is amazing.
A couple highlights going around the horn
- Longmont single-family sales sets its 2nd highest monthly average ever.
- Just 1 new construction unit counted in the Longmont attached total. Fewest in a long time. This one is a detached home at Sunset and the tracks, which was set up as a condo because of all the shared common areas.
- Boulder County Plains hits its highest monthly average ever and the 4th time over $1M.
- The Carbon Valley is the leader in the clubhouse; gains 1st market of the month award for lowest drop in both sales and inventory; also has the biggest drop in days on market.
At this point, knowing that inventory is low is not enough. Soliciting sellers isn’t enough. Formulating solutions to the question “Where would I move” is a problem-solving approach. It may require listening to the thoughts, concerns and dreams of potential sellers. Do they need a local retirement community? Do they want to retire in Florida; live off-grid in Arkansas; build their dream home in the mountains? If so, you’ll want to help them with possible solutions and a Realtor contact in their preferred destination. This problem won’t solve itself and I can’t foresee anyone chasing ambulances, but a listing right now is gold. Go get ‘em tiger and give me a call if you want to brain-storm other seller acquisition strategies.