Friday, January 23, 2009

Boulder Condo and Town House Market Update

by Osman Parvez
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From the current research report, here's a look at real estate conditions for condos and town homes in Boulder. The following is an analysis through the end of December, focusing on sales volume and inventory levels.

If you're looking for information on price trends (median price, $/SQFT) or days on market, give us a call at 303.746.6896. We provide our clients with unique insight into market conditions specific to their situation. We can help you make a smarter real estate decision.



Inventory - as the chart above shows, inventory levels during most of 2008 tracked below prior years. December finished out with inventory of 343 units, down 7% from the prior year.



Sales volume - there was a bit of an up-tick from November's poor performance. 34 properties sold, an increase of 89% from November but down 31% year over year. 681 properties sold through the 12 months of 2008, a decrease of 11% from the prior year.



Sales to inventory - this is a measure of absorption. It registered 8.8% in December, down slightly from prior years. Through most of the year, this ratio was generally inline with prior years, an indicator that the market is not in deep distress. The last few months however have not been as rosy.



This last chart is a look at how the market compares to the average of the prior four years. Inventory was 4% below and sales volume was a whopping 27% below. Clearly the last several months have been a very difficult time for sellers of real estate. Meanwhile for buyers, the market is looking ripe with inventory set for its seasonal rise into the spring selling season. Sellers thinking about listing their property this Spring should be prepared for tougher market conditions, taking care to properly market their properties and set the list price only after a careful analysis of the competition.

To get the most out of current market conditions, choose an agent who knows the state of the market and will work hard to help you get the most out of your situation. Although the overall market is soft, there are pockets that are quite healthy. Whether you are buying or selling, analyzing the market relative to your situation will help you make a smarter real estate decision. If you'd like to learn how we can help you, call us at 303.746.6896.


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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. 

2 comments:

  1. Osman - are we finally, then, on the verge of the correction here in Boulder? Your comments suggest a Buyer's market in 2009, but I do not sense in the listings yet what I am sensing on the street (poor jobs outlook and economic instability). Will Boulder real estate owners lower their prices, or will the lack of inventory (greenbelt, draconian building regs) continue to inflate prices and insulate owners from the bloodbath just outside?

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  2. Great question. I'm elevating this to post level.

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