Delayed spring activity could mean improved summer, fall market

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.

Sellers be aware: buyers start New Year with new home search

All the talk about the “summer buying season” has most home sellers postponing putting their homes on the market until spring or summer.

However, IRES and RE/MAX of Boulder, Inc.’s data of available-homes showings indicates that while sellers may be willing to wait, buyers aren’t. In 2007, showings started fairly strong at the beginning of the year and peaked in the spring before leveling out during the summer and dropping off in the last quarter, with just a few spikes here and there.

What this says is that buyers are returning to the market faster – hoping to start the New Year with a new home – than sellers. It also indicates that those putting their homes on the market earlier in the year have a better chance, albeit slight, of getting their homes sold in a timely manner because they have less competition.

RE/MAX has tracked this phenomenon since the market turned in 2001 and it appears a trend is taking shape: the time to get a home in front of buyers is in the first couple of months, when buyers are of the fresh-start mindset. As the year goes on and the real estate market gets negative headlines, buyers become more hesitant to enter the market although more homes are available.

However, selling a home in the dead of winter has its drawbacks, although most home seekers are savvy enough to know that a picture of a home in all its springtime glory doesn’t tell the whole story. Remember that a photo of a home with a snow-covered yard and trees is attractive, as well, and a home can show just as well in the winter as in the summer with the right attention. Here are a few do’s and don’ts from RE/MAX of Boulder as well as Suite101.com about preparing a home for winter showings:

• Shovel the walk and minimize the use of ice melt: potential buyers and agents will track it through house, ruining the clean look and damaging the flooring.
• Keep the house clean.
• Clean and de-clutter outside: don’t leave your children’s sleds or the shovel you just used to clear the walk outside.
• Open as many curtains and blinds as possible and have lots of lights on throughout the house.
• Keep the house warm and comfortable, even turning up the thermostat if you usually err on the side of conservation.
• Have a professional come to service and inspect your furnace. Documentation showing that your furnace is regularly maintained helps potential buyers feel at ease when they inspect the property. Having a folder with service records and other household maintenance information will show people that you have cared and loved your home.
• Insulate and seal up your home before the snow flies, if possible.
• Ensure that the weather stripping around the windows and doors is free of cracks and properly seals when they are closed.
• Clean the downspouts and gutters to prevent the buildup of snow and ice and potential leaks.
• Ensure that the roof is in good condition. Fix problem areas immediately.
• Keep entrances and exits clear of melt water and, therefore, of potential slipping hazards.
• Keep coats and winter gear out of sight.
• Insulate pipes against freezing temperatures: it takes a long time to remove signs of moisture damage.
• If the home is equipped with a wood-burning fireplace, clean the chimney and make sure that the wood stove is functioning properly and that debris from the wood is cleaned up.