In the Front Range, and more specifically the Boulder area, homeowners have a lot to be thankful for, as they are seeing double-digit appreciation at a time when inflation is below 2 percent. The spread between inflation and housing appreciation has probably never been higher.
The average price of a home sold in Boulder County was $638,146 in October, 17.7 percent higher than the average a year earlier, according to the Colorado Association of Realtors.
In mid-October, 897 single-family home were listed in Boulder County, and 376, or 42 percent were under contract, well above the average of 22 percent. Last year, there were 1,023 active listings, and 368, or 35.6 percent, were under contract.
As of November 18, 2015, in South Boulder, the inventory is non-existent for condos/townhomes. That’s right, there is nothing for sale. Condos/townhomes get under contract practically as soon as they hit the market. The last available listing for was 83 Benthaven at $519,830 but it went under contract 6 days later.
As far as the available inventory for houses, there are 4 houses for sale out of 13. But 2 listings are brand new and under 600K so it’s just a matter of days till they get under contract and the other 2 are the highest priced in Sobo at $2M and $3M. Another way to look at this picture is that there soon will be nothing for sale in South Boulder except 2 very high-end properties (which are overpriced or they would have sold too)…
I have never seen such a tight market in South Boulder – Absorption rate measures in a matter of weeks as opposed not months for condos/townhomes and is 1.24 month for detached dwellings. This translates to an average of 0.83 month or about 3 ½ weeks for all of Sobo combined (in a balanced market, absorption rate is 6 months).
As far as single family dwellings, there were 8 new listings in August, 4 in September and 7 in October… solds count was 7 in August, 7 in September, and 15 in October.
For single family dwellings, average price is $823,000 and median is $700,000 with an average price of $348/sq.ft. For attached dwellings, median price is now at $450,000 with an average price nearing $360/sq.ft!
Many people are shocked to see Table Mesa surpassing the $1M mark. 1476 Judson Dr (MLS #772817) a 2,464 sq.ft. 5 bedrs, 3 baths expanded and remodeled bi-level with a 2-car attached garage was listed for $989,900 on 8/19/15, went under contract a week later, and sold for $1,051,000 on 10/6/15. Sure it was remodeled, but over a $1M in Table Mesa?!! Another house which was never in the MLS was 3495 Heidelberg Dr, a fix-and-flip which an investor bought for $525,000 on 10/8/14 and remodeled. It was never listed, and it was sold for $1,050,000 on 11/3/15.
Ok so the South Boulder market is on fire… This, however, doesn’t mean that sellers can continue to uptick their list price on the same steep trajectory. Buyers are ready, willing and able but are, in essence, dictating the market. Of the properties under contract to date, prices had to be adjusted somewhat to get under contract. Let’s look at some of them:
4390 Butler Circle, a 1,762 sq.ft. 4 bedrs, 2 baths bi-level with a 2-car attached garage (MLS #8940717) started at $625,000 on 10/2/15 and was reduced to $610,000 on 10/9/15. It went under contract on 10/22/15 and closed at $590,000 on 11/16/15 (as per my prediction in my listing review in October).
1065 Toedtli Drive, a 2,156 sq.ft. 3 bedrs, 3 baths ranch with a 2-car attached garage (MLS #777372) started at $650,000 on 10/15/15 and was reduced to $595,000 on 11/11/15. It went under contract on 11/13/15.
510 Yale Rd, an 1,801 sq.ft. 4 bedrs, 2 baths four-level with a 1-car attached garage (MLS #770925) started at 899K on 7/30/15, was reduced to 869K on 8/25/15 and again to 849K on 9/23/15. It went under contract on 11/15/15.
868 Ithaca Drive, a 2,052 sq.ft. 4 bedrs, 3 baths ranch with a 1-car attached garage (MLS #774571) started at $849,900 on 9/9/15 and was reduced to $829,900 on 10/10/15. It went under contract on 11/9/15.
345 Bates Ave, a 2,408 sq.ft. 5 bedrs, 3 baths ranch with a 1-car attached garage (MLS #776815) started at $719,900 on 10/8/15, with a 3rd price reduction to $679,000 on 10/29/15. It went under contract on 11/10/15.
1795 View Point Rd, a 3,602 sq.ft. 4 bedrs, 3 baths tri-level with a 2-car attached garage (MLS #762008) started at $1,900,000 on 5/1/15 (but had been on the market for the same price in 2014) and was reduced to $1,795,00 on 10/27/15. It went under contract on 11/14/15.
1560 Blue Sage Ct, a 3,543 sq.ft. 6 bedrs, 4 baths 2-story with a 2-car attached garage (MLS #773012) started at $1,599,777 on 8/21/15 and was reduced to $1,549,000 on 9/15/15. It went under contract on 10/15/15.
I have written reviews on many of the above, so feel free to read these or call me if you’d like a more thorough description of any listings in South Boulder as I make a point of seeing every single listings.
*Not all properties were listed and/or sold by 8z Real Estate. This data is based on content supplied by REcolorado, IRES, PPAR, and/or MLSListings. Content is deemed reliable but not guaranteed. Content may not reflect all real estate activity in the market.