Tuesday, March 04, 2014

Boulder is Desperate for Inventory [Analyze This]

by Osman Parvez

We're still about a week from the official data release for February.  Let's take a look at the preliminary numbers for Boulder Real Estate.   The following analysis is for single family detached homes (i.e. no condos or town homes).    
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Sales Volume



42 houses sold in Boulder last month, about the same as the previous year.   Over the last six months, 334 sales have occurred - an increase of 5%.    

Inventory



Inventory remains excruciatingly low.   Only 166 single family houses are currently on market of which 95 are actually available (not under contract).    Inventory is more than 30% lower than last year at this time.   As the season picks up, more sellers will come to market but don't expect a big flood.   Ultra low inventory appears to be the new reality, note the 3+ year trend shown in the chart above. 


Absorption



No surprise, strong sales and low inventory translate to high absorption.   The preliminary number is 30% for February, well above the long term average high for the year (which typically occurs in June).  

Strategy

Ultra low inventory and rising sales volume translates to a strong seller's market.  For buyers - I'm pulling out all the stops, writing backup offers, and beating the streets for inventory.  Listing alerts are set on instantaneous and I'm dropping everything for showings.   For sellers, I recommend pricing at the top end of my valuation analysis and testing the market.   I also recommend pre-negotiating anticipated low appraisals.   In a bidding war, this favors buyers putting down more than 20%. 

If you're thinking about buying or selling Boulder real estate, call me.  I can help you get the most from current market conditions and make a smarter decision.  ph: 303.746.6896. 

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