Boulder Condo and Town Home Market Update

Here's a quick update on the the market for condos and town homes in Boulder.

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Boulder Attached Dwelling Sales Volume:


28 homes sold this past February, compared with 46 last year (39% lower). Over the last twelve months, the monthly average has been 62.3. That compares with 65 in the year earlier period. Although we're still early in the season, the slow start to the year along with an unrelenting barrage of negative news about the economy in general, will likely put a damper on sales volume this year. Last year looked fairly normal (blue line above) but I expect 2008 will trend below that level.

Boulder Inventory:


There were 445 homes on the market in February, compared with 417 properties available last year (up 6.7%). The good news is that Boulder has not seen inventory levels balloon like the former bubbles markets. Even compared with neighboring city Longmont, our local inventory levels have remained relatively normal.

Boulder Sales to Inventory Ratio:


Sales to inventory is a measure of liquidity and is probably one of the best barometers for the general health of the market. As you can see, last month was the lowest reading on the chart (the past few years).

There's a few possible reasons that the market for attached dwellings in Boulder is not doing as well as the market for traditional single family homes. Part of it could be the increased inventory from large developments like the Peloton. Another is that many condo and town home buyers are parents looking for a place to house their student/children and they might be feeling concerned about economic conditions.

In a quickly rising market, parents could save on the rental cost of housing their student/children through an offsetting rise in appreciation on a purchased property. Today's market is not appreciating at a fast pace. There is also plenty of rentals available, keeping the cost relatively low. In that kind of situation, where appreciation is mild (or even flat), rents are cheap, and the economy is uncertain, many parents might be sitting on the sidelines.

As always, if we can be of assistance in your real estate needs, please give us a call. You can reach us at 303.746.6765.

Note: Our goal is to become the best real estate resource for Boulder Colorado and surrounding communities. The ideas and strategies in this blog are the opinion of the writer and subject to market uncertainties. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making investment decisions. This article is not legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

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