Tuesday, May 13, 2008

The Silver Fern Report - Now Available

by Osman Parvez
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The latest Research Report, showing market conditions through April for most cities in Boulder County, has just been published and distributed. As usual, I'll post a few charts from the report in the next few days.

A couple of general takeaways:

Inventory continues to decline in all market areas except boulder attached dwellings (Boulder AD).

Sales volume is up in Boulder, Erie, Longmont, Louisville, and the Mountains.

Sold to inventory ratios improved in all markets except Boulder AD and the Plains. The best sold to inventory ratio continues to be Louisville, a long standing trend and a key reason we recommend buyers consider Louisville.



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2 comments:

  1. Osman
    I saw the NAR report today that showed a 5.5% and some 7% drop in prices for Boulder and Denver from last year levels.
    Is there a correlation between the increase in volume you found with this price drop? Are sellers in these locales pricing it lower to sell fast?

    Is the Sold to Inventory ratio the reciprocal of Days inventory outstanding?

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  2. Rags,

    The NAR report looks at Metropolitan Statistical Areas (MSAs). This information is interesting from a regional economic perspective, but remember that when you pool together sales data from large and varied markets, you get information that has little relevancy for individual buyers or sellers.

    With that said, if you reduce price in any normal demand curve the result should be greater sales volume, right? So it stands to reason that in general, sellers may be pricing to sell faster. In some cases, we know this absolutely but individual circumstances vary tremendously.

    If you're shopping for a deal, they're definitely out there. We've recently helped clients buy foreclosure property at stunning discounts from the comparables. But you'll need to roll up your sleeves and do some homework to find the best deals. An experienced agent can help you with that.

    The answer to your final question is yes, but my statistic is not measured in days it's measured in months. So if 30 homes sell this month and last month there were 60 homes on the market, the sold to inventory ratio is 0.5. To get to days of inventory, you need to take the reciprocal and multiply by days in a month. (1/0.5)x30 = 60 days of inventory.

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