February’s market stats show signs of spring, emergence of selling season

While February's home sales statistics for the Boulder area were nothing to throw a party over, they were an improvement over the month before, and they were in line with sales at the same time last year.

Boulder County saw 158 single-family homes sell last month and 67 condos and townhomes sell, compared with 127 single-family homes and 56 condos and townhomes in January. February's single-family home sales were the same as in February of 2008, but only 46 condos and townhomes sold a year ago.

Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor Association, notes that the increase of inventory – from 1,768 single-family homes on the market in January to 1,976 for sale in February; and from 668 condos and townhomes for sale in January compared with 760 in February – is also promising.

The more homes available, the more buyers have to choose from, he says. And the increase in inventory as well as sales show that people are no longer sitting on the fence: they are deciding to sell or take advantage of the market and buy.

Median sales prices for homes in the Boulder area are headed in the right direction overall compared with January, as well, but it was condos and townhomes that had the healthiest showing in median and average sale prices in February.

Hotard describes the statistics for February as showing "classic improvement as you move through the year and closer to the buying season," adding that the area should have a strong March and April.

Nonetheless, sales are still sluggish compared with historic market trends as a result of tight credit and the lack of job growth factoring into the pace of sales, he says.

And the expiration of the extended first-time buyer and existing home owner tax credit at the end of April will not help the market, Hotard says. Any home buyers looking to take advantage of the credit must have their homes under contract by the end of April and close on them by July 1.

"I think it would present some more difficulty for the market as a whole," Hotard says. "Congress should extend it at least until the end of this year. It's been very helpful to move the market along over the past year. It has provided some strength to the overall economy and really should be extended."

The National Association of Realtors has been lobbying President Obama's administration and Congress to extend the credit, he says.