The sales are final and the numbers are in. We have just had the 2nd highest closing month in Longmont since August of 2005. The highest since then was last July when we had 142 single family sales in town. We handily beat The Predictor’s number of 137 for June and if the order count in our office from June (for July closings) is any indicator, we should be pretty darn close to another record closing month in July.
In today’s market one of the trends that is becoming a significant part of the market again is new construction. New construction poses a tricky problem for this stats guy. The problem is that most builders don’t have their listings in the MLS. It’s simply because most aren’t Realtor members. That’s only part of the problem. The wrinkle they create is that only some are actually listed in there and then only some of them are reported as closed sales. So getting a good grasp of their impact on the market is a little tricky. This being said, it’s odd that in this month’s report of active listings over 40 of them are new construction.
To get a handle on this issue I went to the trusty Public Records section in IRES to do a little research. We know that this source of information isn’t the most accurate in the world, but it’s all we have to go on. This month’s graph below shows the new construction in Boulder County where the property has a Longmont address. There is no way to match up the IRES area of Longmont to the public records so some of the homes are outside of town and therefore outside of our typical reporting are of Area 4 in IRES, but I still think this gives us a good trend indicator.
In doing my research I was only going to go back to 2004 and match it up to sales in Longmont. But, since the areas don’t match, I went further back and ran out of steam at 2001. I could have taken it a step further and called the City of Longmont for new construction building permits for each year or CO’s issued for that year, but I decided not to bother those fine folks with my curiosity. In hindsight, I should have at least grabbed an average price for each year…that would have been interesting too because I’m sure it has gone up dramatically.
June 2014 Longmont Area Stats
- Monthly Sales Volume UP 18.5%
- New record LOW Days on Market – 47!
- Average Sale Price OVER $300k for 5 straight months!
- Longmont Attached Average Days on Market – 37!
- Carbon Valley Sold YTD UP 9.9%.
What does this return of new construction mean to your business? Well, in 2013 it presented 468 opportunities to sell a house…156 times to represent a buyer in new construction, 156 opportunities to list a house and another 156 to sell it. From all indications, builders these days are much more willing to include a Realtor on a transaction. Granted there is the same old line that the buyer needs to represent themselves as working with an agent. Here is where the work begins for you, the Realtor.
When calling, mailing to or visiting with people in your sphere, make sure they know the benefits to being represented when looking at new construction. The issues that I have heard about with some builders demand a buyer be represented by a Realtor. Many tradesmen have left the area for more lucrative work in the oil fields of S. Dakota and Texas, leaving a limited supply of qualified and experienced workers, therefore less qualified people are building some of the homes today and creating issues due to their inexperience. If there isn’t a professional Realtor in the game to fight for the buyer and possibly even an independent inspector to do periodic inspections during construction, your friends, family and neighbors could be buying an inferior product and have no idea how to handle it.
Happy 4th of July weekend to everyone. If you receive the Notice of Default list from me it will be delayed until Mondaydue to the holiday tomorrow.