Tuesday, May 17, 2016

Boulder High-End Sales Analysis [Caution Flag]

by Osman Parvez
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No, the market is not scorching hot for all property types and locations in Boulder. Your agent says otherwise? Find a better Realtor.  

For the past several years, we've advised our clients to be cautious and conservative before jumping into a bidding war for high-end properties. The data supports our advice. Here's the latest stats: During 1Q16, only 26% of real estate transactions above $1MM closed for more than asking. The majority sold for asking or less. 

Take a look at the chart below. 


It's shocking how many agents waive their hands around and pretend it's a hot market for any and all properties in Boulder. The data tells a different tale. While the market remains active, the majority of high-end properties are not getting a premium over asking. The chart above is what a balanced market looks like. 

As of this writing, there are 130 homes on the market with asking prices of $1MM+. 43% of these homes are under contract. During the 1Q16, which is normally a slow time of year, the total sales volume for $1MM+ homes in Boulder was 38 transactions. More than two thirds of these deals closed within 60 days of listing, a typical time frame.   

Intelligent real estate decisions are based on a deep understanding of market conditions. There is no substitute. 

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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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