Yes, I know. It’s a pretty simple graph this month, but it does finally show a decent increase in seasonal inventory. Hopefully this will provide some much needed relief to our longstanding shortage. It’s just in time to feed the summer rush of home buyers. Did you notice that this “summer rush” started a bit early this year? The high sales volumes we experienced were also present in the Metro area with higher than normal closing starting back in March. Normally, the summer rush begins in earnest in June.
Some research I was doing for a different project showed that Longmont saw 219 new listing in April. That 219 total included both single family and attached homes. And, 219 sounds like a pretty good number…until you hear 154 of them are under contract, 10 are closed, and 7 withdrawn…leaving just 48 new listings from last month still active (as of noon on May 5th).
Speaking of lack of inventory. If you look at the inventory graph you will see that we have about 1/3rd of the number of listings we had in 2007. We pretty much know this is the cause of our inventory crunch and price increases. I was at a real estate conference in Denver last week and saw a chart of their inventory. The 7 county Metro area currently has about 1/10th of their normal inventory levels. I guess we are lucky.
- YTD Closings ahead of both ’13 & ’14
- 219 New Listing in Longmont in April
- Area 5 Median and Average Price gains huge!
- Carbon Valley Average Sold Price $314,509!
The year-to-date (YTD) closing totals in all areas are UP over last year. We haven’t seen that in a while and is a bit of a surprise given the lack of inventory. Even better news on this front is that we are up in all areas over 2013 as well. If you remember 2013 was a higher sales volume year than 2014. If this trend continues, we could see some record numbers this year. We have a long way to go so don’t bank on that one yet.
Holy smokes! Take a look at the median and average price gains in the charts. The median price in Area 5 jumped $70k and the average jumped $50k. The numbers that come from that area can produce quite a big swing on a monthly basis due to the multimillion dollar home sales that can occur (or not occur), but it doesn’t usually jump that much. The Carbon Valley has an AVERAGE at $314k? Wow! The lowest median or average price increase in this report is +9.7% and the highest is 19.0% for the median increase in Longmont attached properties. Last month the median and average in Longmont attached homes both jumped over 30%. Those are big numbers, but they are being fueled by the townhomes on Venice finally going through resale and a number of high end condos in Prospect selling for the first time in a long time.
Considering all that you see in this report and what I’ve written about, I’m going to make a small prediction that’s fueled by nothing more than a gut feeling. There is nothing in these statistics or current trends that can lead someone to come to this conclusion. It’s just the way I’m reading the tea leaves. I predict that we will start to see our percentage price gains level off over the next few months. It might be a healthy thing if they do. I don’t think it will do any harm either. Let’s wait and see. Until then, good luck and remember that there is no magic pill to great success, only hard work.