Tuesday, January 10, 2006

Boulder Condo & Townhome Days on Market

by Osman Parvez

What about Days on Market (DOM) for Condos and Townhomes? In this segment, we see an interesting potential trend shift.

Median DOM decreased while overall sales and the average DOM increased. There are several possible explanations. One is that slow moving properties create an outlyer effect. They aren't sold a few days after the typical property, they are sold at after a substantially longer period of time. Even in a slowly warming market outlying properties will continue to skew the average.

Meanwhile, the drivers for attached dwelling sales are likely going to continue to increase. The first wave of Baby Boomers are nearing retirement. Condos and Townhomes have lower maintenance headaches and the entry point is much lower than a single family home. Plus, Colorado is a great state to retire in due to it's low cost of living, stunning weather, and outdoor recreation opportunities. Builders in Boulder are also continuing to develop new and more attractive interpretations on the concept.

This segment of Boulder's market is also heavily driven by students, their parents, and those that rent to students. With the growth in second home ownership and lower cost/more open lending practices, parents are wising up. As I wrote in my piece on how buying can still save you money, owning in Boulder can be smarter than renting over four years with only modest future appreciation. Maybe parents are wising up.

Click on the chart below for a full-sized view.




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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

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