January 2016 Market Update for Vista Ridge

John McConnell Front Q4

Happy New Year everyone! I hope you all had an excellent holiday season with family, friends, or simply just relaxing!

2015 was quite the year across the board with huge increases in sales numbers over the year in both single-family homes and in condominiums. Total Vista ridge sold 165 homes this year, an increase of 41 more homes over last year’s total of 124. Of this year’s 165 homes sold, 45 of those were condominiums in the Blue Sky units and four attached units in the Cedarwood area. The rest of the 116 units sold this year were Single-Family homes around Vista Ridge.

This was a particularly great year for the Blue Sky Condos, with 45 units being sold this year. Some interesting data from this year… In 2014, the most expensive unit that sold (the second floor, 3 Bed/3 Bath unit) sold for $191,000 at its peak; in 2015 however, the same unit sold for $250,000 for an increase of over 30%. That is 30% in a year’s time. Furthermore, the average price of the whole Blue Sky Area, across all units, has grown for $169,000 in 2014 to $201,000 for an increase of 18.9%. Blue Sky is showing the largest growth in the area particularly because there is no other alternative in the area for this price range. The closest condominiums available at a near comparable price are in Broomfield off 144th, and that is just too far south for some people. This incredible price growth over the year is indicative of what we have been saying for some time; people are coming to the Boulder area rapidly, and are looking for places to buy and rent in the under $300,000 range; a price point that is rapidly diminishing. The time has come to consider investing in a Blue Sky Condo because the potential cash flow from renting one of these units out is exceedingly lucrative.

Single-Family homes are also showing solid growth over the year. In 2014 the average home price in Vista Ridge was $422,000; in 2015 the average home price is $451,000 for an average increase of 6.87%. This is a full percent and a half lower than the Denver average, however it is still a solid growth figure especially when you consider that as Denver and Boulder prices rise, more and more people will be coming further north to more affordable housing and commuting to work. This also doesn’t even take into account when Google moves into Boulder in the coming years. Erie and Vista Ridge are primed for sustainable and long term growth.
One more thing that is definitely worth mentioning. In 2014, 57 homes sold for under $400,000, and 7 of those homes sold for under $300,000. In 2015, 54 homes sold for under $400,000 and NONE of those homes are under $300,000…That price point is gone here, and the 300’s are slowly getting higher and higher.
Currently in Vista Ridge there isn’t a lot of inventory available. There are currently zero condos of any type available in the whole area, and there are only 19 single family homes listed. To put that into perspective, December is one of the slowest months in the year and we sold 11 homes… We hardly have a month’s supply of homes listed in Vista Ridge. Moreover, there is nothing available in the under $450,000 price range at this time.

This is all a lesson to be had. The housing market that we have seen isn’t going to go down without something catastrophic. People are coming to Colorado and they are coming in droves. We were named the fastest growing region recently, and that isn’t going to change; Colorado has so much to offer and people are ready to take advantage of that. With all of these people come a higher demand for quality homes. This isn’t a faulty mortgage situation like before, this is simple supply and demand; with more people coming, there is a much larger demand for homes than there has been in some time. With that, people are willing to spend more and more money on quality homes. This is a market that is here to stay. This is why we are seeing such growth across all areas, and why price points are drying up. The sub-$300,000 price range is gradually moving up, and the closer you are to Denver the faster it will rise. Erie and Vista Ridge are set to explode and get a large influx of people. We are perfectly situated between Denver and Boulder that we make such a great hub for activity and commute. Because of this and supported by the evidence we are seeing, Erie is likely going to have solid growth for years to come.

Now is both a fantastic time to buy into such a thriving community as well as potentially thinking about using newly acquired equity to turn your investment into something more.

 

*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.

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