Thursday, March 20, 2014

Inventory Rises in Superior [Market Update]

by Osman Parvez

Time for an update on real estate market conditions in Superior, CO via House Einstein Research.   

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What's happening in Superior?   Let's take a look.

Superior Home Inventory 



Like most other markets in Boulder County, inventory is in short supply in Superior.    There were 23 homes on the market last month, up 53% from last year but still 39% below the long term average for February. 


Inventory (and thus selection) typically peaks in May for Superior. Something for home buyers to keep in mind. 

Superior Sales Volume



Only four houses closed last month - about the same as the previous few years.    Small, low volume markets like Superior can have high volatility from month to month.   That's why it's important to look at longer periods of time. 



The chart above shows sales volume for the past twelve months, ending in February. 134 houses sold during this period, down nearly 16% from the same period a year earlier.    Most of this slow down has occurred in 1Q14. 

Median Sale Price


Again, with such a low volume market - monthly median sold price is only an indication of the median point that sold during the month, not appreciation/depreciation.    


For the full year 2013, the median sold price was $440,000 - an increase of 7.8% from 2012.    


Days to Offer 


The average days to offer was only 10 for houses that sold during February.    The long term average for the month is 83 days.     The most desirable homes, when priced correctly, are now going under contract within a couple of days hitting the MLS. 


Absorption

Sales to inventory is the most recent month's sales volume as a percentage of the previous month's inventory - a measure of absorption. 

During the month of February, absorption was 20% - slightly above the long term average for the month of 17%. 

 

This chart shows inventory and sales volume compared to the long term average (for each month).  At a glance, you can see that inventory has remained well below average for the past twelve months.   Sales volume has been mixed with a spike occurring in December before falling sharply in January.   Keep in mind that the winter has low sales volume in an otherwise low volume market. 
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