The Boulder area real estate market is moving at an “anemic pace,” but it is improving modestly from month to month, according to Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor Association.
Nationally, home sales increased 2.4 percent from April to May. “That’s similar to what we’re seeing,” he says.
The Boulder market is also experiencing modest growth in inventory of homes month over month, but Hotard says he expects the peak in inventory and sales that normally comes in April or May to not arrive until July. The late arrival of that cycle could equate to a better fall market.
The volume of single-family home sales from May 1, 2008, and April 30, 2009, is down between 11 percent and nearly 40 percent in every Boulder community compared with the previous year, and the volume of multifamily sales is down between 9 percent and 42 percent. But Realtors are reporting more buyer activity and an increase of homes under contract, Hotard says. Next month’s statistics should show whether that activity and contracts result in more closings.
Several markets experienced an increase in average and median home prices – including a 9.4 percent increase in median price and a 3.4 percent increase in average price in Broomfield – in May, but some had significant declines. Hotard attributes the latter to what’s selling – more lower-priced properties – versus the value of real estate across the market. And with a lack of lending availability, especially of competitive jumbo loan products, that trend is likely to continue.
In the communities where prices are improving, such as Broomfield, Boulder and Superior, it’s a result of a combination of price point, location and product, Hotard says. For instance, Broomfield has a supply of newer houses priced appropriately for this market, “so it’s no wonder you’re seeing some good strength there,” he says.
“It’s rational and realistic to say that this continues to be a difficult market,” Hotard says, adding that “hopefully it’s setting up to be a productive fall season.”
With moderately priced housing and an $8,000 first-time homebuyer tax credit, he is optimistic that that is exactly what will happen.
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