Thursday, June 01, 2017

Inventory Under Contract Falls, Boulder Real Estate Market Cooling [Analyze This]

by Osman Parvez
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The writing is on the wall.  

After years of high activity, the Boulder market is now showing clear signs of cooling. Median sale prices have once again dropped below asking.  Inventory has risen 9.4%, year over year.  Now, as we enter the summer market, the percentage of inventory under contract has fallen.   

These aren't alternative facts. Take a look at the following chart. 


The purple bars represent the percentage of inventory of single family houses under contract for the end of May and beginning of June from 2015 to 2017, in Boulder. As we entered summer two years ago, it was over 55%. Last year, it was 53%. This year, it's fallen to just under 39%.

I you argued that 39% is still absurdly high, I would agree. Yet, taken with the other data points, it paints a clear picture of a cooling market.  

Remember, the Boulder market varies by price range, property type, property characteristics, and location. The price for similar houses can be profoundly different just a few blocks apart. If you're serious about buying or selling, do yourself a favor. Consult with a professional real estate adviser. Intelligent real estate decisions are based on deep market knowledge. There is no shortcut.    
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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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