Bubble Behavior

Things aren't so bad in Boulder, but drive about 900 miles south to Phoenix, AZ and you'll find a real estate market imploding. It's also creating some very strong emotions in buyers and sellers. We work with emotional clients too, but nothing like what's being reported in Phoenix.

From the Arizona Republic, comes this article.

Real estate agent Neil Brooks was getting the feeling that his client was about to completely lose it. He'd seen it before.

He had just broken some bad news about her house deal, and she wasn't taking it well. She was pacing, yelling and swearing at him, tossing a cellphone from hand to hand.

"I was thinking, 'OK, here we go,' " said Brooks, who's with Century 21 Arizona Foothills. "Something's going to happen. Something's going to blow."

He was right. The client whirled suddenly and whipped the phone at him. But he was ready. He ducked, and the phone shattered against the wall behind him. The client stormed out of the house.

Brooks wasn't mad, and he wasn't offended. The business of buying and selling houses provokes extreme emotional outbursts. The stress, the financial worries, the personal feelings people have about their homes - sometimes it's too much to take. People yell, they lose sleep, they cry, they're stricken with buyer's and seller's remorse.

That's especially true these days in metropolitan Phoenix's post-boom housing market, where nearly everything has reversed since last year's frenzy. The number of homes for sale on the Arizona Regional Multiple Listing Service increased nearly four times from June 2005 to last month, when it hit a level nearly double what experts consider healthy. Last year, homes sold in about three weeks. Now, it's about triple that

If you want to see how a true bubble market compares to our local real estate, take a look at the statistics mentioned in the article and compare it to our local market.

Tags:Boulder Colorado Real Estate Boulder Real Estate Bubble
Hat Tip: Keith
Image: April Mitts

Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

What Silver Lining?

For the last few months, I've noticed an uptick in the number and size of commercial property deals in our region. Interlocken is again hot. Longmont is attracting a number of new companies. Denver is frequently announcing new projects underway and large commercial property deals. A quick glance in downtown Boulder now yields a surprising number of cranes (and more are on the way).

As I've mentioned before, rising interest rates and tougher lending standards (including a move against piggyback mortgages) are all signs of credit tightening, which should push potential buyers into renting. Sure enough, residential rents are on the rise. Gordon Von Stroh, a DU business professor who has been tracking Denver's real estate market for 25 years just released his latest (100th) report. It shows apartment vacancies in Denver at the lowest level since 2001 and median rent of $804.28 (up 2.3% from a year earlier).

If you look at my real estate market updates (right menu on my blog) for local communities, you'll find many are showing higher inventories and lower absorption rates. Colorado also has a record number of foreclosures. Areas with short commutes to Boulder or Denver may be attractive investments (I particularly like Broomfield, Louisville, and Lafayette). The smart money earns a profit by buying property below intrinsic value. Distressed assets are often a great source for doing this, if you're willing to do the due dilligence and have patience for the often lengthy process.

Tags:Boulder Colorado Real Estate Boulder Real Estate Investment Property Deals Strategy


Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Can You Put Off the Pain?

I've never been a fan of Adjustable Rate, Interest Only, or Negative Amortization loans.

In recent years, these loans have appealed to buyers driven by monthly payment. Oh, I know they can work well for those who plan to hold the property for a short period, among other reasons, but many didn't understand how their loan would behave over time or the risks involved. Now, the first big wave of mortgage resets (the date when the interest rate "adjusts" to market) is starting to impact the market, no doubt contributing to Colorado's foreclosure epidemic.

Well, it looks like some people with ARMs are choosing to play double jeopardy in order to postpone the pain of rising interest rates.

Here's an excerpt from a recent New York Times article noting the trend.

Now, the first big wave of the mortgage boom is cresting as more than $400 billion worth of adjustable-rate mortgages, or about 5 percent of all outstanding mortgage debt, will readjust this year for the first time, according to Loan Performance, a research firm. Next year, another $1 trillion in loans will readjust.

When that happens, for instance, a typical borrower with a $200,000 A.R.M. could see his monthly payments increase nearly 25 percent when the A.R.M. adjusts from 4.5 percent to 6.5 percent. In total dollars, that is an increase from $1,013 a month to $1,254.

Yet instead of paying more now, many borrowers are refinancing into their second or third adjustable-rate mortgage, loan data indicate and industry experts confirm.

It remains to be seen how long interest rate pain can be put off. In a nutshell, borrowers refinancing an ARM with another ARM are again betting that by the reset date either their personal financial condition will have improved or interest rates will be lower. And while I shudder at a gambler mentality, there's nothing wrong with a decision based on level headed analysis of risk and return.

So, will rates go up or go down?

Since the early days of when I first started tracking the market, what surprised me is how often the market analysts are wrong. Short term concensus opinion is a little more accurate (although when it's wrong, the markets reel) but long term, market watchers often miss the call. The bottom line is that there's no crystal ball.

The key areas of concern are growth and inflation. If growth is slowing and inflation is kept in check, we might see an end to rate hikes soon. If inflation is becoming a problem, rates could keep increasing and stay high until it's under control again. The trick of course is that most economic indicators are trailing, meaning that what we're seeing now isn't the result of the lastest rate hike. It's more the result of rate changes 6 to 12 months ago, or even longer.

I could try and share some more thoughts on the business cycle and interest rates, but there are people out there with far more expertise on the subject. This post by Michael Alexander, for example, is good background reading.

p.s. A recent commenter asked how the Boulder area will be impacted by ARM resets. It's worth elevating that question to post status.

I believe areas with higher education and median incomes like Boulder will be less impacted by rising rates and foreclosures. As my previous posts on the foreclosure epidemic pointed out, Boulder has already been holding up well compared to other parts of Colorado and I think it will continue to do so. At the same time the homes most likely to have been purchased by those of lesser financial strength (everywhere) are now most likely to be impacted by adjusting ARMs. Although the low end of Boulder's market is still very liquid, we're seeing foreclosures here too. As I've written previously, for savvy buyers willing to take the challenge of purchasing a foreclosed property, there's a potential silver lining.

note: Adjustable rate mortgages (ARMs) usually have a low rate for the first few years of the loan then reset (or "adjust") to market rates. Interest Only mortages allow the buyer to pay only interest for a set period of time with no paydown of the principle value of the loan. Negative amortization is where a buyer's payments don't even cover the interest on the principle, and the deficit is added to the loan.

Tags:Boulder Colorado Real Estate Boulder Real Estate mortgages Rates Economy
Image: Lars Ivar

Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Total Existing Home Sales (NAR)

A few days ago I posted our local real estate market updates (see sidebar). Today the National Association of Realtors (NAR) published their report on existing home sales.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 1.3 percent to a seasonally adjusted annual rate of 6.62 million units in June from an upwardly revised level of 6.71 million May. Last month’s sales were 8.9 percent below the 7.27 million-unit pace in June 2005.

As expected, sales are cooling across the country and many markets are seeing a return to a more normal state. Some areas, including the Boulder market, are fairing better than others. The latest Boulder Market update shows sales in June up 16% from a year ago. However, we've also had some slow months this year (March and April) and Sales volume is running about 2% lower than this time last year while median prices are up about 3%.

If you have a chance, take a look at the NAR press release. Unfortunately, I don't see an easy way to drill down to the state level however Colorado is included in the West region.

Tags:Boulder Colorado Real Estate Boulder Real Estate Research Analysis Market Report


Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Year to Date Boulder Market Summary - June, 2006

Here's a year to date version of my overall market summary through June, 2006 for Boulder, Broomfield, Erie, Lafayette, Longmont, Louisville, Superior, Mountains, and Plains. The chart below has statistics on average days to offer (DTO), Inventory, Home Sold, Homes Sold/Inventory (prev. mo), and Median Price. It also includes a comparison to June, 2005.

Because this is through June, the chart below is also a half year analysis (1Q and 2Q). However the 2005 statistics are for the full year, not just the first six months of '05.

With all the bubble bursting hoopla (see blogs I've linked on the sidebar menu), you might think real estate all around the country was in a free fall. Well, not exactly - as I written before (ad nauseum?). As you can see from the chart below, some areas are feeling the impact of higher foreclosures, slower sales, and high inventory levels. Other areas are barely affected.

I think the most telling statistic is sales/inventory, an indicator of absorption. Boulder, the Mountains, and the Plains are showing a higher rate of absorption than last year. Superior meanwhile is showing a significant slowdown.

As always, you comments are appreciated and if you have any questions feel free to call us at 303.746.6896.



Tags:Boulder Colorado Real Estate Boulder Real Estate Market Summary Statistics Analysis

Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Boulder County Real Estate Analysis - June, 2006

Here's an overall market summary through June, 2006 for Boulder, Broomfield, Erie, Lafayette, Longmont, Louisville, Superior, Mountains, and Plains. The summary chart below includes statistics on average days to offer (DTO), Inventory, Home Sold, Homes Sold/Inventory (prev. mo), and Median Price. It includes a comparison to June, 2005. The areas are also ranked on the right side of the table below.

As always, you comments are appreciated and if you have any questions feel free to call us at 303.746.6896.



Tags:Boulder Colorado Real Estate Boulder Real Estate Market Summary Statistics Analysis


Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Lafayette Home Sales Analysis - June 2006

How's the Lafayette real estate market doing? Here's the latest market update through June, 2006.

June represents a variety of interesting trends for Lafayette. Sales volume rocketed upwards, inventory dipped slightly, and average days to offer continued to decline (see charts below). As usual, the blue, red, and green lines represent 2006,2005, and 2004 respectively.


Sales Volume in Lafayette roared back to life in June, with 47 closings. Sales increased 42% from May and up 4% year/year.


Inventory dropped slightly from last month but remains high, with 228 homes on the market. That's 2% less inventory than May but up 13% from last year.


The average sold home in Lafayette was on the market for 71 days before receiving an accepted offer. That represents a 10% decrease from last month and down 17% year/year. Since February, Lafayette has shown steadily decreasing days to offer.


The ratio of sold homes to inventory (from the previous month) improved in June to 20.2%. That's a 4.8% increase from May and 1.5% less year/year. (Note, for this statistic I'm talking straight differences between months and years, not a percentage of a percent. Capiche?)


Demonstrating the enormous volatility of median prices on a month to month basis, the median price of homes sold in Lafayette in June was $393,000. That's 30% higher than the previous month but down 7% year/year.

A number of market experts feel that 6 to 9 months of inventory is healthy. Yes, inventory is relatively high in Lafayette, at least compared with the past two years. However, If sales continue at June's pace, about 5 months of inventory is now on the market and that seems a very healthy number.

As always, if you have any questions don't hesitate to contact me at 303.746.6896. Your comments are also welcome.

Tags:Lafayette Colorado Real Estate Lafayette Real Estate Market Analysis Inventory Recent Sales

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Recent Links - July 20th

Circle Capital Partners are on the move again. They've acquired 9 buildings and over 900,000 sqft of prime office space in downtown Denver from the Blackstone Group and JER Partners in a deal valued above $100MM.

The Globeville metal processing plant operated by Asarco is expected to be sold to a developer in the coming weeks. Located at I-25 and I-70, the plant has long been controversial for environmental reasons and a cleanup could cost $8-10MM. Details to be announced as early as next week.

Will the Governor have the ability to exclude forest land from development? The state is inching closer to giving the Gov. the power to limit development on portions of the 4 million acres of Forest Service land in Colorado.

Are websites public property? On July 13th, the Federal Trade Commission declared a popular Texas de facto public property. The core of the disagreement was over the type of listings allowed on the site. Under the proposed order announced today, The Austin Board of Realtors would no longer have the right to decide the content of its own website. For at least the next 10 years, the FTC will make those decisions. The comment thread on this article is particularly interesting.

Remember those heavy rains last week? About 200 homeowners in Douglas County are no longer able to get to their property and it could be weeks before access is restored.

Looking for info on 29th Street? One of your first stops should be the Daily Camera. They've put together a great site outlining the 29th Street Development project and tracking its completion.

M.D.C. Holdings operating as Richmond American Homes will pay $675K in fines for an illegal practice called Captive Title Reinsurance. This followed the $24MM settlement reached with First American Title in February. Once again, don't just shop around for a real estate agent. Be sure to choose your lender and title company carefully.

Tags:Boulder Colorado Real Estate Boulder Real Estate News links development

Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Housing Maps Revisited

I took a few minutes to revisit Housing Maps today and was impressed by how this site has continued to develop. The recently added filter feature is a big step forward.

If you are looking to buy or rent a home, give Housing Maps a whirl. The site is a mashup, combining data from Craigslist and Google Maps to create a very useful (and free!) service for house hunters.

The real difference is the visual display of information. You see all the homes on the map that match your criteria. If you click on the list of homes that are generated on the right, the map automatically recenters. If you click on a pushpin, you get that particular listing's information. As with other Google Maps, it also gives you the option to switch to Satellite or Hybrid mode. Google Maps continues to set the standard, in my opinion, one of the reason we use it on in the listings from our site.

As I mentioned last time I looked at Housing Maps, the service is more useful if you're looking for rentals than if you're looking to buy. Many agent websites, including my own, have mapping options and contain the full spectrum of available listings (versus only the inventory on Craigslist).

If I were looking to rent an apartment in an unfamiliar city, Housing Maps would be my first stop. Their selection of cities at the moment is limited, but I wouldn't be surprised to see it grow in the near future.

If you're looking for Boulder by the way, it's not there. The data is aggregated under Denver. Simply choose Denver from the list of available cities and then drag the map toward the Northwest to see Boulder.

It seems to me that Craigslist and Google should get behind Housing Maps and inject some serious liquidity into this project. It's a winner.

Tags:Boulder Colorado Real Estate Boulder Real Estate Technology Mapping Rentals
Image:Sparky

Note: Our goal is to become one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. We recommend careful and complete due diligence before buying or selling real estate or other investments. Please consult with your tax, legal, and investment advisors before making investment decisions. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Yahoo! + Zillow!

Yahoo! will now be using Zillow's technology to provide home value estimates, a switch from Homegain.

A smart move, in my opinion. Zillow's interface and thoroughness is a big improvement on what's out there for the typical homeowner. For a casual look at what your home (or your neighbors) might be worth, Zillow may be the best online source of information. If you haven't already, check it out. It has a super easy interface, including Ajax driven mapping with satellite and hybrid view options. Quite entertaining to use! Of course, If you're seriously thinking about listing your house, I still strongly recommend an opinion of value from a qualified agent. I've seen more than a few occasions when Zillow is very inaccurate and in this market climate, "testing the market" or otherwise mispricing your property can be a serious mistake in the marketing of your home.

Will web 2.0 companies like Zillow and Refin replace realtors? Here's what the always insightful Altos Real Estate Research Blog had to say,

"Realtors are not going away, their value is shifting from owning the listing to building their clients' confidence about their buying & selling decisions. The best real estate agents have always been local market experts. But now we live in a world where 80% of real estate buying and selling starts on the Web. So your client's head is filled with visions of the real estate bubble and a price number from Zillow and school data from Redfin and today's open homes from Trulia. So Realtors have to stay a step ahead, provide clear, actionable information, and strong, insightful guidance. They have to interact with their clients like never before. Ultimately the real estate agent who makes their clients confident and successful in their transactions will win this game. For agents, it's no longer about answering "what's for sale?" or even "what price?", it is about the Why, When, and How of the transaction. It's about demonstrating expertise."

Hat Tip: Altos Research

Tags:Boulder Colorado Real Estate Boulder Real Estate Zillow Yahoo! Home Values

Summary only...

Best Place to Live? Fort Collins, Colorado

Hmm... A few months ago, Louisville, CO was rated as the Best Place in America to Raise a Family. Now, Fort Collins, Colorado is ranked the Best Place to Live according to CNN and Money magazine. Well, I guess it's not a secret that the Front Range as a whole is one of the most attractive, enjoyable place to live in the country. The accolades just keep rolling in.

According to the CNN's Money Magazine,

Great schools, low crime, good jobs in a high-tech economy and a fantastic outdoor life make Fort Collins No. 1. Situated 5,000 feet above sea level in the Rocky Mountains, the city offers restaurants, night life and culture, plus natural attractions like nearby Horsetooth Reservoir for boating and swimming. There are 60 miles of hiking and biking trails, and most major roads have bicycle lanes. The place took off in the '90s as companies moved from high-priced California.

Pros: Outdoors lovers' paradise; good schools; very little stress
Cons: Tech-dependent economy

Here is Money's full analysis of Fort Collins, including statistics on income, education, housing, quality of life, weather, health, and leisure opportunities.

As it happens, this past weekend I was helping clients who are relocating from Virginia learn about luxury homes and golf course neighborhoods in Fort Collins. At the moment, their preference is for the Fort Collins Country Club and having seen the facilities and the neighborhood, I understand why.

On that note, I should take a moment to thank Linda Hopkins and her colleagues at The Group Real Estate for being so helpful in arranging showings on short notice, entertaining my clients, and confirming key neighborhood information in Fort Collins. Their professionalism was outstanding and I look forward to working with them.

Dallice and I discussed the article this morning and agreed. If we weren't so in love with Boulder, Fort Collins would be a strong second choice. It's a great place to live.

Tags:Fort Collins Colorado Real Estate Fort Collins Real Estate Ft. Collins Neighborhoods Best Place to Live

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Erie Home Sales Analysis - June 2006

What's happening for single family homes in Erie, Colorado? Here's my latest real estate market update through June, 2006.

Below you'll find charts showing a market bouncing back from the Spring lull in Erie, CO. Inventory leveled off and sales volume increased in June. Note the last paragraph where I compare the first six months of 2006 with the first six months of 2005. Blue, red, and green represent 2006, 2005, and 2004 respectively.


42 homes in Erie sold in June, a large jump from the previous month. Sales volume was up 40% from May and 50% year/year.


Accordingly, the inventory of available homes in Erie dipped slightly (about 1%) from last month but remains about 24% higher than June of last year.


The average Erie home closing in June was on the market for 102 days before receiving an accepted offer. That's a 21% increase from May and up 10% year/year.


The median sale price in June was $292K, up 6% from June of last year but down about 3% from May.


The ratio of sales to inventory continues to show improvement in Erie. Approximately 16% of available inventory sold in June, an increase of 3.6% from May and up 1.7% year/year.

If you look at the first six months of 2005, you'll find that 135 homes sold at an average median price (goofy number, I know) of about $285,000. In the first six months of 2006, 146 homes sold in Erie at an average median price of $313,000, or about 10% more than the same period in 2005.

I know there is lots of news about a housing bubble and with the high foreclosure rate in Colorado, many people are worried. Although it appears to have leveled off, inventory in Erie is still up 24% and that excludes any pocket off-MLS inventory that builders may be holding. But at the same time, we're seeing increased sales volume overall about 10% higher median prices. That's nothing like bubble markets are experiencing, where inventory is 50% higher or more than last year and sales volume has declined massively.

p.s. The goofy sounding "average median price" statistic I mentioned above is created by taking the average of BARA's monthly median price data.

Tags:
Erie Colorado Real Estate Erie Real Estate Market Analysis Inventory Recent Sales Days on Market For Sale

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Deals of the Week

As a followup to my post on house hunting strategies, here's what applying a contrarian strategy (start with high DOM) can yield in Boulder. The following homes sold this week at big discounts after prolonged periods on the market.

2155 S. Walnut St 2. This 3BR, 3BA, 1400 SQFT tri-level townhome is situated in a great location in downtown Boulder. Originally listed for 449,000 in march, it sold this week for 385K (14% discount) after 104 days on market.

1564 North Street. This 3BR, 3BA, 2200 SQFT home had a major renovation in '95 and was updated in 2004. It featured a newer kitchen with Hickory cabinets, soapstone countertops, oak flooring, 2 bedrooms upstairs with private baths, and a main floor guest room with adjoining 3/4 bath. Originally listed for 685K, it sold this week after 168 days on market for 600K, an 11% discount from original asking price.

908 10th Street. This 4BR, 2BA, 2400 SQFT "arts & crafts" style 2 story home located in the University Hill area (close to Chautauqua) with flatiron views. The home had original fir floors, a recently remodeled kitchen, high ceilings, walk in closets, brick fireplace, built-in cabinets throughout, and lots of light with south facing windows on a mature lot w/ fruit trees. The house was originally listed in April for $735K. It sold this week after 136 days on market for $689K.

Take home lesson: Do your homework and know the market. Don't be afraid of properties long on the market as seasoned sellers may be more open to negotiation. And before writing an offer, be sure to ask your buyer's agent for an analysis including a set of comparables. Here's an example.


Tags:
Boulder Colorado Real Estate Boulder Real Estate Sold Homes Strategy Discounts

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Recent Links

It's been awhile since I posted links.

Here are a few recent real estate and development related stories that are worth checking out (some articles may require registration).

Bad luck be damned, 29th Street's Grand Opening is Friday, October 13th. The Wild Oats store won't be ready but 88% of the mall is leased, according to developers.

Louisville is moving closer to creating an urban renewal area along CO42, with the planning commission voting 5-1 to move the proposal forward. The future Fasttracks stop located in the same area is helping provide momentum.

Noodles and Company have moved their HQ to Broomfield. This article is worth a look because it discusses some of the reasons Broomfield and other local communities have been able to attract a growing list of corporations, sometimes at Boulder's expense.

Through a sale/leaseback, local biotech Array BioPharma is getting an additional $32MM in capital. I'm happy to report they are staying in Boulder.

Less common in Boulder, Scrape Offs are popular in Cherry Creek, Hilltop, Cory-Merrill and University Park neighborhoods of Denver.

Home sales in Denver are presenting an interesting market pattern. High end homes are fetching record amounts and average prices have increased more than expected even as inventory rises and foreclosures mount.

Development in Boulder is continuing at a strong pace and some builders have plans for neighborhood icons, including the First Christian church on 28th street which is slated to become a condo building. The article does a good job of explaining the issues at play.

A new proposal could cut out Erie from benefitting from a rail station being planned for Longmont. This is one of two new stations for Longmont, one of which is part of Fastracks pointing toward Boulder. The other is a commuter rail line running along I-25.

Of course, the ongoing foreclosure situation in Colorado deserves attention. For the 6th month in a row, Colorado has the highest foreclosure rate in the nation. With 1 in every 280 occupied homes in some state of foreclosure, we clearly have an epidemic. As the article notes, some areas are affected more than others and Boulder remains relatively unscathed.


Tags:Boulder Colorado Real Estate Boulder Real Estate News Links Development

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Broomfield Home Sales Analysis - June 2006

What's happening in the market for Broomfield, CO real estate? Here's my latest market analysis through June, 2006. For the charts below, the blue line is the current year. Red and green are 2005 and 2004, respectively.


45 Broomfield homes sold in June, an increase of 18% year/year and up 45% from May equal to the peak in July of 2005 and a record for the previous two years.


Home inventory in Broomfield continues to nudge upward with 254 homes on the market in June. That's an increase of 4% from May and 37% year/year.


For sold homes in June, the average was 45 days to an accepted offer, an increase of 11% from May but still 11% below last year.


The median selling price for Broomfield homes in June was $290,000, an increase of 4% from May and 2% year/year.


The rate of sales to inventory (prev. month) was 18.4% in June, up 5.6% from May and down 2.3% year/year. Note: the differences described are simple comparisons and not "percent of percent".

Overall it appears as if the growth of inventory has started to level off and sales volume has bounced back in Broomfield. However, Broomfield also has over 200 homes in some state of foreclosure. This could continue to create a buyer's market for some time, with more options for buyers and sellers willing to negotiate, particularly at lower price points.


Tags:Broomfield Colorado Real Estate Broomfield Real Estate Market Analysis Inventory Recent Sales Analysis Sales

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Boulder Townhome and Condo Sales Analysis - June 2006

What's happening in the market for townhomes and condos in Boulder? A few days ago I published a market analysis by price point. Here's the broader market update with comparisons to 2004 and 2005.


89 condos and townhomes sold in June, a drop of 15% from June of last year and down 16% from May.


601 Homes were available for sale in June. That's a 4% increase from last year and 1% more than May. If historical trends continue forward, June should be the inventory peak for 2006.


Average Days to Offer was 69, the lowest since September of last year. That's a decrease of 17% year/year and 4% less than May. The lower days to offer is a continuing trend for Boulder townhomes and condos.


Median sale price of townhomes and condos are up for the 4th month in a row to $265,000, representing an increase of 13% year/year and up 2% from last month.


Sales to Inventory was down to 15% in June, a drop of 3.3% from May's 18.3% S/I ratio and 3.8% lower than last year. (Note: straight differences, not percent of percents).

Overall, the condo and townhome market remains healthy, although inventory levels have risen and sales are slower than last year. Interestingly, if you look at the breakdown by pricepoint, condos and townhomes represent a sort of mirror image to Boulder's single family home market (detached dwellings). The low end of the condo/townome market is slow with substantial inventory. The high end is the opposite.

Tags:Boulder Colorado Real Estate Boulder Real Estate Market Analysis Inventory Recent Sales Townhomes Condos

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Deal Hunting Tips: Longmont

I enjoy working with investors, so I thought I'd put together a few deal hunting tips for those looking for real estate bargains this summer. The ideas below are applicable anywhere, but my analysis is specific to Longmont, Colorado.

1) First know the market. Below are charts detailing Longmont's Inventory, Sales, and Sales to Inventory (previous month) look like now. Inventory continues to rise and sales are substantially slower than the previous two years. Sales to Inventory remains below 15%.





2) No, really. Know the market. Here's the drill down for the current market in Longmont. The red bars represent the amount of available inventory to sales in the previous 90 days by price point. The green line is inventory.




As you can see from the charts above, there's a mountain of inventory at the low end. Above $500,000, the level of inventory drops but the ratio of inventory to sales skyrockets. The worse spot? $675 to 700K. For the only home sold in the last 90 days, there's 16 homes in inventory.

3) Know the basics. If you haven't already, read The Eight Biggest Buyer Mistakes (and how to avoid them). Also check out the great article published today on intrinsic value in real estate written by Rich Dad Poor Dad's Robert Kiyosaki. If you're willing to deal with foreclosures, be sure to understand the process and some of the risks involved. Here's a great foreclosure site put together by local real estate law guru Oliver Frascona. If you're reading books or doing your research online, make sure what you're studying is applicable to the State of Colorado.

2) Do your search systematically. Setup an investment screen starting from the homes that have been on the market longest. Sellers with vacant property may be more willing to negotiate because they usually don't have the emotional attachment as someone who lives in the house. If it's vacant, they're also hemorrhaging cash every month and will be more motivated. Screen for "seller motivated," "vacant," "not for rent," or any other tipoff to a seller's willingness to negotiate in the text fields of the listings.

3) Focus on good neighborhoods. Consider the commute to areas of high employment and the quality of local schools. You can find commute times using Google Maps or Mapquest. Be sure to take a few hours to walk the neighborhood (I'm still amazed at how few people do this). If you're using Silverfernrealty.com (my site) to search for properties, each listing includes a link to school information and a Google Map.

4) Be patient. Take your time, don't fall in love with any particular property, and be prepared to walk away. You may find you're putting in offers and negotiating a several times before you find that sweet deal.

5) Get a good agent. To do most of the tips above well, find an agent who understands your investment objectives and is willing to roll up his or her sleeves to help you. Most of the tips above are much easier to do with the help of a good agent. Be sure to get referrals to inspectors, handymen, and financing. I'd recommend interviewing at least three agents and being clear about what you're looking for. If you've enjoyed this article and would like to consider the Silver Fern Team, you can reach me at 303.746.6896.

So what kind of deals are in Longmont?

Below are a few potential bargains I dug up. These are properties I think are worthy of further due diligence and currently on the market in Longmont. All have been on the market a long time, which tends to make sellers more willing to negotiate. This time of year also encourages negotiation because if sellers don't get their properties under contract soon, they'll miss the peak summer selling season (Longmont and Boulder are very seasonal).

If you'd like to know more about the properties below or schedule a showing, don't hesitate to contact me. Also be sure to click the links on each property for more details, including school information and a Google Map. The Google Map lets you toggle for an aerial view.

Low End:
1128 Meadow Street - $179,900. This vacant 3BR property has been on the market for 420 days. It's already had a 5.5% price reduction (originally listed at 189,900). According the public record, it was purchased for 116K in 1998 but there appears to be a mortgage on the property for about 150K, suggesting offers above 150K might be taken seriously.


Middle of the Market:
609 Deerwood Drive - $365,000 - This 4BD, 4BA, ~4500SQFT has been on the market for more than 460 days. According to the public record, it was built in 2003 and sold for $320,000 in December of that year. The current owners bought it in July of last year for $390,000 (the original offer price). It's currently tenant occupied.


High End:
1131 Twin Peaks Circle - $800,000 - On the market for nearly 400 days, this large 5 Bedroom, 5 Bath home is vacant and the listing indicates the sellers "will entertain offers. " The public record indicates it was last purchased in 1993 for $635,000, perhaps giving the sellers some equity cushion to negotiate. Bonus! Twin Peaks Golf Course is nearby.


Luxury:
3880 Glenneyre Drive - $1,195,000. This 4Bd, 5BA luxury property is a new construction home built in 2005 and features Cherry floors, a Granite and Cherry Kitchen, and a steller location among other premium features. Surprisingly, it hasn't seen a price reduction in the 425 days.


As always, thoughts and comments are much appreciated.

Tags:Boulder Colorado Real Estate Boulder Real Estate Longmont Bargain Investment Ideas

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Piggybacks and Foreclosures in Longmont

Boulder County is fairing very well amid a gusher of foreclosures in Colorado, but as credit is further tightened by rising interest rates and more stringent lending practices, there will be continuing impact to the local real estate market.

As I've reported previously, Longmont has the largest number of foreclosures in Boulder County. As of today, 372 properties in Longmont are in some state of foreclosure. The majority of these are at the low end of the market, most for homes valued below $250,000 and many below $200,000.

This section of the market was also the most likely to be acquired by those with the least financial resources. Right or wrong, it was increasingly common for people who didn't have a 20% downpayment required for a conventional mortgage to finance their purchase through the use of a piggyback loan. These loans involved a second mortgage which closed at the same time as the first, thereby providing a borrower a way to avoid paying private mortgage insurance (PMI)

Yesterday Calculated Risk, a well written economics/housing blog, reported that rating agencies are "upping the ante" for piggyback loans because they are nearly 50% more likely to go into default than conventional mortages. Coming federal regulations may also further reduce the availability of piggyback Loans.

It's not surprising that piggyback loans are more likely to go into default. PMI was there for a resason after all. But the availability of these loans certainly made it easier for people who otherwise couldn't to purchase a home. As piggyback loans going away, the pool of potential buyers is further restricted.

Keep in mind that while Longmont is experiencing the most foreclosures in Boulder County, it's nothing compared to other parts of the state. Adams County has about 3500 properties in foreclosure. That's nearly 2.5% of the homes in the county (according to the latest Census data).

With healthy employment rates, a low cost of living, and an ability to attract large employers like Amgen, Longmont could recover from the foreclosure hangover much more quickly than other parts of the state. In the meantime, the softness at the bottom of the market might represent a silverlining for investors.


Tags:
Boulder Colorado Real Estate Boulder Real Estate Foreclosures Longmont Investing

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Boulder Home Sales Analysis - June 2006

Just when you thought I was done posting charts, I've got more. A lot more.

I just finished my latest market analysis for June and will be posting charts tracking the real estate market for Broomfield, Erie, Lafayette, Louisville, Superior, Longmont, and Erie in the coming days. If you've come to this post looking for the latest sales analysis for one of those areas, try choosing from the menu on the right from the main page. As I publish the new market reports I'll update the links. .

So what's happening in Boulder real estate? Here's the latest market update through June, 2006. If you can't see the charts below, try visiting my blog directly. You can also contact me and I'll email you a copy (PDF).


Sales volume rocketed to 128 transactions in June, representing increase of 27% from May and about 16% more than last year.


June is typically the highest inventory of the year and 541 homes are available this year. That's an increase of 18% from last year and 6.1% more than May of '05.


June showed a surprising jump in Days to Offer with an average of 54 days till an offer was accepted. That's a 69% increase from last year and 26% more from the previous month. Then again, maybe it's not that surprising considering the spike in sales volume. Perhaps a number of seasoned properties closed last month.


The median sale price was flat in June at $560,000, an increase of 4.3% from last year and no change from the previous month.


As I mentioned a few days ago, I've tweaked the way I'm calculating sales/inventory. Instead of using the current month's inventory, I'm using the previous month. I think it's a more accurate calculation given that when the inventory data is published it seems to be up to date but sales accounts for the whole previous month. This is probably the single best statistic to gauge the overall health of the local real estate market.

For June, the sales to Inventory ratio was 25%, an increase of 3% from the previous month and 1.4% better than last year. Note, I'm not doing % of %. The increase/decrease is straight addition/subtraction from the comparable period.

My conclusion? Inventory levels are slightly higher than the previous two years, but sales remain quite robust. Sales to Inventory levels are stronger than the previous two years and days on market, despite the recent increase, remains quite reasonable.

Of course, from my price point analysis you know that the high end of the market is slow moving compared to the $300 to 500K range homes. Entry level homes in nice neighborhoods like Martin Acres continue to sell very quickly.


Tags: Boulder Colorado Real Estate Boulder Real Estate Market Analysis Inventory Recent Sales

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Townhomes and Condos by Price Point - Boulder

Don't get blearly eyed from all the charts. At least not yet. Here's another ten to compliment my previous post.

Below you'll find a market analysis of townhomes and condos in Boulder by price point. Again, if you're thinking about a real estate decision in Boulder, this analysis should be very useful.

Available inventory is blue, properties under contract are white, and properties sold in the previous 90 days are red.

The mid range of the market looks a little tight, but there's plenty of inventory for at the low end. This is definitely good news if you're thinking about buying a condo or townhome instead of renting for a CU student. For an interesting trend, related to the high end condos being built in Boulder, take a look at the last chart (note price point range is increased). 15 high-end downtown condos valued between $1MM and 1.5MM are under currently contract.












Tags:Boulder Colorado Real Estate Boulder Real Estate Townhomes Condos Market

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

In Depth Analysis by Price Point - Boulder

It's been awhile since I published one of these, so I took a little time this afternoon to crunch the numbers. If you're thinking about making a real estate decision this summer, the following analysis should be very useful.

Below are charts laying out Boulder's market by price range for single family deattached properties. I've charted available inventory (black), homes under contract (red), and homes sold in the past 90 days (yellow).

As with the last time I published this analysis, the $300,000 to $500,000 price range remains the strongest part of Boulder's market. Feel free to contact me with any questions at 303.746.6896.









Tags:
Boulder Colorado Real Estate Boulder Real Estate Analysis Inventory Market

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Real Estate isn't the Stock Market

Here's a few thoughts on a shifting market

Nationwide data for the second quarter won't be available until August 15th, but local market reports are starting to trickle in. Plus, with growing coverage in the mass media, it's clear that the long anticipated real estate slowdown is finally taking place.

As expected, the changes are taking place in very different ways. Some once hot bubble markets on experiencing rising inventory and slower sales. Other markets are virtually unchanged from last year.

Locally, Metro Denver has higher foreclosures and is experiencing a stronger slowdown than Boulder and surrounding areas. Yet median sale prices are significantly higher in most local markets (click on market updates from the main menu). Adding to the confusion, days on market is trending lower.

What's happening? In short, real estate is not an efficient market and the statistics used to describe it leave much to be desired.

In equities, market makers and other traders continually purchase and sell securities creating liquidity. When news impacting asset values is announced, the stock price reacts instantly. The systems to disseminate information are also established and available. Yes, I know it's arguable whether equities markets are truly efficient (I don't think they are), but once thing is clear, real estate markets are far less efficient than stock markets.

In real estate, there is no market maker. News may be out, but depending on the sensationalism of it, the information can take a surprising amount of time to filter down to buyers and sellers. Plus, the public sources of key information are limited. With the exception of a few blogs and agent market reports, there are few places buyers and sellers can turn for accurate, timely, and in depth market information.

Take the Fastracks project along the Denver/Boulder corridor. In theory, it has the possibility to massively impact transportation patterns along the front range. With large mixed use development projects like Transit Village in the pipeline, the potential impacts to communities (both positive and negative) could be substantial.

Are residential real estate prices affected? Minimally and mostly at the site of proposed stops. Most of our recent buyers, particularly those from out of state, haven't even heard of it.

Take the news on median prices. Yes, prices are higher but that doesn't mean that your home in your neighborhood is necessarily worth more. In some cases, depending on the situation, it be worth less than last year. The immediate value of your home is driven by what else is on the market and the number of ready and able buyers.

That fact is that statistics like median sale price only count the sold homes. It doesn't take into account all the homes that didn't sell. In a situation where many potential buyers (especially marginal ones) are on the sidelines, buyers have a better selection to choose from and are buying the best homes. These properties tend to be well priced and in great neighborhoods. They sell quickly, driving down days on market (DOM) and, because we're talking about the cream of the crop, possibly increasing median sale price.

Contrast this with the stock market. Here the value of your not unique asset is set by the market. If you, holding 1,000 shares of Ball (BLL) want to sell at $45/share because you bought it at $40 a year ago, you won't place it on the market for six months hoping for a sale. Yes, you can place a sell order on the shares for $40, but you know today's price is $36. You don't need to sift through my research blog to see today's market price for BLL. You don't need to bring in an expert to help you determine market value. It's $36. Plus, there's no difference between common shares of BLL.

In the real estate market the value of your unique asset is also set by the market but information is very limited. You can ask anything you'd like, but unlike the stock market, where you know the current trading value of the stock, you may not know how your offering will fare for several months (or longer). The time it takes for sellers who misjudged the market to realize their mistake, the fact that even when it does sell, the asset value was based on incomplete information (buyers and sellers rarely have the full story), plus higher transaction costs are the inefficiencies of the real estate market.

And it's the ineffiencies plus the usually ignored differences within a market by price range and location which create a situation like we seem to be experiencing today. It's the explanation for higher inventories, more foreclosures, lower days on market, and higher median prices all at the same time.

Take home lesson? If you're contemplating a real estate transaction, it's a good idea to find out what's happening in your local market and be sure to get the scoop relative to your specific situation. Make sure you've got the right comparables and place a higher weight on the latest information. If you are convinced your home or neighborhood has unique benefits which may not be obvious to a potential purchaser, be aware that educating buyers as to its value may be your biggest challenge.

To get you moving in the right direction, you'll find a breakdown of sold homes per available inventory for May and Year to Date (YTD) for Boulder and surrounding communities below. Sold/Inventory is one of the more useful statistics to gauge the health of the market. It's sometimes expressed as available supply (i.e. if homes in the City of Boulder keep selling at a sold/inventory rate of 22.1%, we have less than a 5 month supply of homes available). The second table is inventory alone.

Note, the first half of each table is a comparison of May, 2006 with May, 2005. The second half of each table is year to date (though May) compared with the full year 2005. Note the differences between markets.





Please feel free to leave a comment or question, or if you'd prefer, you can reach me at 303.746.6896.

Tags:Boulder Colorado Real Estate Boulder Real Estate Liquidity Market Efficiency Analysis

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...

Boulder Neighborhoods: Martin Acres

As a resident and the new secretary of the Martin Acres Neighborhood Association (MANA), I thought it's probably time to take a deeper look at our little slice of Boulder.

Martin Acres: A subdivision built in the 1950s in south Boulder. The neighborhood is defined by US Highway 36 to the east, Table Mesa Blvd to the South. and Broadway to the west. There are about 1,300 homes in Martin Acres and several apartment buildings. (source: MANA)

Here's a map of the neighborhood:



As I've reported previously, Martin Acres is also arguably the most liquid neighborhood in Boulder. Homes begin around $300,000, inventory is perpetually low, and well priced properties in its heart sell very quickly. Here you'll find a fair number of "pop-tops," where the property is completely remodeled and a second story is added. Martin Acres is also close to campus, has a beautiful park with a bike path, and we're within walking distance to Base Mar or the Table Mesa Shopping areas. If you've got a young family, you'll also be glad to know that Creekside Elementary is located in Martin Acres and there are a surprising number of day care facilities in the neighborhood.

What's happening in Martin Acres with respect to the Real Estate market?


Year to date, 24 properties have sold in Martin Acres. That's about the same for the first half of the past two years with 22 and 23 sold in 2005 and 2004, respectively. January and February were a little slower this year but that probably had more to do with a lack of available inventory than homes sitting on the market.


Median sale price and $/Total SQFT in Martin Acres continues to appreciate nicely. The median sale price was $318,000 and $338,500 in 2004 and 2005, respectively. Year to Date, the median sale price has been $350,500. This represents a 6% appreciation rate between for 2005 and 4% YTD. $/Total SQFT has jumped even faster, appreciating 15% in 2005 and 36% YTD.

Below you'll find recent sales in Martin Acres as well as what's currently on the market. Note, homes that sold for less than $300,000 tend to be on busier streets and those above $500,000 are usually extensively remodeled "pop tops."



By the way, Dallice is planning to walk around the neighborhood in the next few days to hand out a print version of this real estate update. If you see her please say hello!

Tags:
Boulder, Colorado, Real Estate, Boulder Real Estate, Martin Acres, Neighborhood, Analysis.

Note: Our objective is to make this blog one of the best resources on the web for real estate and development in Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. The Silver Fern Team does not provide legal, tax, or investment advice and is in no way responsible for investment results derived from this article. One should always conduct due diligence before buying or selling real estate or other investments and consult with a tax, legal, and investment advisor. Like what you've read? Subscribe to this blog and get new posts in your email.

Summary only...