Tuesday, January 19, 2016

Wonderland Lake and Newlands Homes Exceed $1MM Threshold [Analyze This]

by Osman Parvez
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Last week, one of our blog readers asked how appreciation rates in Martin Acres compared to other Boulder neighborhoods.   

Great question. Take a look at the following chart. 


As it turns out, Martin Acres experienced far higher appreciation last year than many Boulder neighborhoods including Table Mesa, Wonderland Lake, and Newlands. The median sold price for a house in Martin Acres increased 17.4%. Wonderland Lake increased 15%, and Table Mesa 11.5%. Newlands, by comparison, gained a paltry 5.1%. 

Of course, the characteristics of these neighborhoods and the houses within them are quite different. North Boulder neighborhoods have also traditionally traded at premium to South Boulder.  Access to open space, retail, commuting corridors, and school ratings also vary.


The median sale price in Wonderland Lake and Newlands both exceeded the $1MM threshold last year. The typical house in Martin Acres sold for about half that value. 



These neighborhoods differ in another important characteristic: market size. Sales in Table Mesa last year were almost equal to the sales volume of Martin Acres, Wonderland Lake, and Newlands combined

Conclusions
If you're thinking about buying or selling a home, it's important to work with an experienced Realtor who understands market dynamics down to the neighborhood and street level. The most important question sellers ask is what price to list their home.  Buyer want to know how much to offer.  

Waving your hands around and guessing is not the right approach.  

Pricing mistakes are rampant. During the past year in Newlands, for example,  sale prices ranged from 18.9% over asking (3182 5th Street) to 11.5% below asking (3169 8th Street). In Wonderland Lake, it ranged from 18.5% over asking (1110 Poplar) to 11.5% below asking (970 Union). In Table Mesa, it ranged from 17.9% over asking to 24.6% below asking (1775 Deer Valley). These sort of ranges are not indicative of negotiation expertise.  They're indications of pricing and marketing strategy errors.

Smarter real estate decisions are based on deep knowledge of market conditions. Shop Realtors before you shop houses.      
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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. 

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