Thursday, March 27, 2008

Feeling Just a Little Bit More Cautious...

by Osman Parvez
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If you're a regular reader of House Einstein, you already know that the Boulder real estate market is finally starting to feel the slowdown. It may be hard to see that from the monthly update analysis, but it's clear when I clean up the data. In a few days I'll update the indexes for the 1st Quarter.

In the meantime, USA Today is reporting on the health of our local market (full article).
Despite the chill in home sales across the nation, Boulder, Colo.'s mortgage market remains warm and healthy.

The city, nestled in the foothills of the Rocky Mountains, shows why there is no national real estate forecast, just as there is no national weather forecast, says Veronica Precella, president of the Boulder Area Realtor Association.

Boulder is unlike many cities. Its homeowners are seldom victims of foreclosure because homes have not been extremely overvalued. Almost as soon as a home is available, it's sold, agents say.

"Our sales are very good," Precella says. "There has been some slowdown, but we think that's mostly attributed to people being just a little bit more cautious right now."

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6 comments:

  1. Yeah! Yippee! FINALLY!!!!!

    I read your blog, and I have seen no indication from your posts that the Boulder market was slowing (although word on the street is calling for a weak spring, and a wake-up call for sellers).

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  2. Click on the link for the index to see my posts on the market slowing. The queston remains how much will it slow. Its unclear whether we will see flat prices or even price declines at all price points or if the market will only be impacted in certain segments (like the high end).
    Stay tuned...

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  3. This comment has been removed by the author.

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  4. FYI: if you want your comments published, please refrain from profanity. Thanks
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    Anon's edited (***) comment below.
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    The comments on the USA today article are much more enlightening than the article itself. The fact remains that Boulder is a 1%-er town. The median homes costs more than twice the national average. There are many, many folks hoping for a price drop here. I am really tired of realtors explaining that we did not have a big run-up in prices here, yet failing to explain the 350K *** that sells for 180K 10 miles away.

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  5. Here we go, the peak spring buying season is virtually here, and my predictions from January were quite accurate.

    BuytheFarm said...

    Q4-06 to Q4-07 median price drop of 16%! That is substantial. We are just starting to see the beginning of the credit crunch and massive asset deflation here locally. Just wait till spring when it is evident to the general public that the sh*t is hitting the fan.

    Dow down
    S&P down
    Nasdaq down
    Global real estate market way down

    Wait Wait
    Inflation for food and energy up

    1/07/2008 05:59:00 PM

    IMO, The tightening of credit going forward will be the most important factor. Easy lending standards from the past will not return. Boulder is a wealthy town, but how many people are really making the $200k + a year needed to reasonably afford a`500K mortgage. I just signed another year lease on my beautiful 2000sq/ft Louisville rental home for ($1300 month). I, (and my family), am eager to buy a home in Boulder, but it's going to take a lot more price adjustment to get me off the fence.

    Keep up the good work Osman, I eagerly await your next quarterly update.

    Best Regards

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  6. We are beginning to see a little of the same here in Summit County. We still have Buyers but they are nervous and that will impact our market. The first quarter of 2008 compared to 2007 was off 22% in number of transactions, but average price was still up 7%. Last year the average price was up 19% for all of 2007, so there is some impact there too. High end Buyers are still buying though!

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