There is a lot of news in this report, so let’s start with big news for us here at First American Title. We are proud to announce that Mark Miller has joined our team in the Longmont office as Branch Manager. He will continue closing for his clients and we will look to expand his book of business now that he has state of the art technology, processors and corporate resources. Give him a shout or shoot him an email at 303-834-3614 or firstname.lastname@example.org.
Before we get into the details of another ho-hum, record breaking month we need to talk about the data. Recently, IRES and REColorado renewed their data share agreement. We used to have this and then we didn’t, now we have it again and it’s very helpful, but it does pose an issue with the data set we use for this report. Y’all know I’m a data geek and the more data the better, but some changes had to be made to accommodate this new data.
It would be useless to include the REColorado numbers in this years’ results and not go back and update last years’ numbers. It is also just silly to not use all available data. The results in this report, and all reports going forward will include all available data from REColorado and IRES. Additionally, each month I will recreate last years’ results. Active listings from both MLS’s are not available from last year but they are included in the new numbers. There aren’t any listings these days, so it doesn’t actually matter.
What is the impact of the additional data on the updated numbers from last year? In Longmont it’s an additional 80 closed units, so about 8 a month were listed in REColorado only. It also took the median and average prices down in ALL areas by $2,000 to $5,000, so not a significant percentage. Tell that to your sellers… “use a Metro agent and net $2k to $5k less on the sale of your home then watch that non-significant percentage mean something. The data that improved the most is in the Carbon Valley where the count of closed homes increased by 30%, but the prices still only dropped by the same $2k-$5k.
In the history of time, the monthly average sales price in Longmont has exceeded $500,000 six times. Five of those happened in 2020. The only other month the average surpassed over $500k was in August of 2018 when it was $500,134. That record stood for 1 year, seven months and has been broken three times in the last 8 months.
It is very clear that inventory has cratered in the whole region. Sales somehow are remaining strong, except for in the Longmont attached market. I’d guess the lack of sales in the attached market is primarily due to the lack of inventory/choices. The same thing should begin to occur in the single-family markets we track. Having just one to two months of inventory (which we currently have) is generally considered a seller’s market, but at this point, with this little inventory, we’ve entered the housing shortage stage. Nobody knows where things go from this point because this stage is new to all of us. Generally speaking, it’s coming at a fairly decent time of year when sales start to slow down.
There are a lot of holidays coming up. I used to preach that you need to go to all the holiday parties possible to remind all your friends and family that you are accepting referrals. This isn’t going to be the case this year, but I do encourage each of you to reach deep and figure out how to contact those friends and family so you can be the real estate professional in their life when the time comes for them to buy or sell. It’s going to be different; you may actually consider calling your friends… on the phone (gasp!).