Thursday, January 16, 2014

High End Condos Sales Boom in Boulder [Analyze This]

by Osman Parvez

What if I told you that higher end condo sales in Boulder increased massively in 2013?

Take a look at the following chart.   




Get The Research
Right now, I'm crunching numbers for House Einstein's 2013 year end report and interesting trends are starting to appear.   Folks - you will not find this analysis anywhere else. If you want a copy, click here to sign up. 

To produce the chart above, I did a price range analysis for house and condo sales in Boulder utilizing data from both MLS systems.   I compiled the data and analyzed 3,134 sales during 2012 and 2013.    

The results are starting to look very interesting.


Supply and Demand Always Find Equilibrium
Take a tranche of the mid range for higher end condo sales - $500,000 to $600,000.   This price range experienced a 91% increase in sales volume last year.  Compare that to only a 7% increase for traditional single family, detached houses in Boulder.  

A 91% increase in sales volume is evidence for a strong growth market in higher end, non kiddie condos.   We're talking about decent size, well designed units 
in good locations.  These are the type of places where you'd expect nice finishes and space to entertain - you know, the kind that adults with well paying jobs or downsizing empty nesters might want to live in. 

Keep in mind that for every condo in the tranche, 3.4 houses sold.  Trading volume is much deeper for houses.   However as the Boomers age, demand for low maintenance, lock and leave so you can see the world condos will continue to grow.   Smart developers are going to be building and selling (or renting) more of these.  Wait and see.  

Let's Talk About Real Estate
Don't forget, the January Boulder Real Estate Meetup is coming up!    On Thursday January 23rd, join me for a discussion of real estate conditions in Boulder.  We'll also be discussing the impact from the floods with specialists from the insurance industry and experts in mold detection.    Please RSVP

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Like this analysis?    Subscribe to my research.       Want to meet me in person?    Attend a Boulder Real Estate Meetup.    Ready to buy or sell?  Call me at 303.746.6896.  

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