Results usually don’t match expectations. What result would you expect from having significantly lower inventory this year than last? Fewer sales? I would guess the same since that’s what happened last year and the year before. Year over year inventory has declined in each of the first three months of 2018. Now go figure out how monthly closings are up each month for the same three months with an overall increase of 21.5% more homes closed in the first quarter of 2018 versus 2017.
My first instinct was to pin this phenomenon on new construction. My research says: maybe. In March there were 14 closings listed in IRES of new construction with an average sales price of $467,128, a low price of $390,000, and an average days on market of 210. Still curious, I looked up the number of new home sales since January 1, 2018 and there were 34…nearly the same as the difference between last year’s first quarter sales volume and this year’s. That might be part of the story, but in no way can be all of it since there were 19 new home sales in the 1st quarter of 2017.
The 215 closings in the first quarter of 2018 is the 3rd highest, first quarter total in the past 11 years. If you couple those results with rising prices and interest rates, they are even more eye-catching, so what’s propelling this market? If the velocity were increasing the average days on market wouldn’t have increased for the month and the quarter… so that’s not it. I would’ve expected to see days on market drop to indicate houses are just selling faster.
Residential Sales Stats
Let me know if you have an explanation for the higher closing numbers for the year so far. I know a lot of REALTORS® who would say it doesn’t feel like the third busiest first quarter in the past eleven years, but then again, I know a few who would. Now let’s take a look at some other things before I run out of steam.
In the Longmont attached section we see that sales volume is down and prices are up. The high average price for the month is mostly due to the four attached homes that sold for over $400k. They were all new attached homes and the highest priced one sold for $687,444 down in Prospect. That has to be an all-time high for an attached home in Longmont. Somebody look that up and get back to me please.
The Boulder County Plains area is heating up again. They had 11 sales this past month of over $1 million. They also had one sell for over $3 million. That’s pretty hot for any March, let alone one with our low inventory. I also believe that our mild winter has brought buyers out a little earlier than normal. It’s the sellers we need to get with the program to make this a busy year.
Short and sweet this month. I have a rant all teed up for next time. Until then, have a prosperous month.