Where We’ve Been, Where We’re Going?
2009 at a glance:
· How is the City of Boulder fairing on its Median Price? Not bad for being down just <2.6%> vs. Year Ago. Last time we were in this range was 1983 when interest rates were in the 16-18% range! City of Boulder holds up even in the most difficult times…
· No Doc loans and stated income loans are a thing of the past. Yes, you really need to prove you have an income to pay for your mortgage!
· Jumbo Loans became very restrictive, yet you can still lock in a 30 year rate in the mid 6% range. Adjustable rate mortgages are in the mid 4% range!
· The Stimulus Package helped Boulder County increase in the 4th Quarter single family home sales. In 2009 sales increased to 752 from 604 in 2008! A 24% increase in homes sold! Attached Dwellings increased in 2009 to 261 from 203 in 2008! A 28% increase! Total Sales 3,069 from Dec 1, 2008 to Nov 30, 2009 compared to 3,606 homes in 2008 same period, a 15% decrease. Condo’s are down 11 percent from 1,345 to 1,193 during the same period. We’re on the uptrend even with that said based on the great 24% and 28% increase of last quarter!
Reviewing the numbers in the City of Boulder for single family homes for the last 4 years from 2006 thru December 31st of 2009 we see that prices remained fairly flat with the Median Price in the City of Boulder in 2006 at $545,000. In 2007, $550,500, 2008 $539,000 and in 2009 $525,000, down only <2.6%> versus Year Ago. The big surprise is that across all prices ranges we’ve seen a similar reduction in the total number of sales. Some thought the high-end listings (over $1M) would have seen a more significant reduction in total sales in 2009. Down just 22% versus year ago.
· 2009 Total Sales in the under $600,000 range in single family homes in the city of Boulder we are down <25%> versus Year ago, down <37%> versus 2007, and down <53%> versus 2006 where 729 homes were sold versus 342 in 2009.
· 2009 Total Sales over $600,000 range in single family homes in the city of Boulder we are down <30%> versus Year ago, down <46%> versus 2007, and down <50%> versus 2006 where 448 homes were sold versus 222 in 2009.
· 2009 Total Sales in the $600,000 - $1M range in single family homes in the city of Boulder we are down <25%> versus Year ago, down <44%> versus 2007, and down <52%> versus 2006 where 339 homes were sold versus 163 in 2009.
· 2009 Total Sales over $1M range in single family homes in the city of Boulder we are down <22%> versus Year ago, down <39%> versus 2007, and down <32%> versus 2006 where 102 homes were sold versus 69 in 2009.
I believe that there is some pent up demand for housing out there. The first of the year showed very good activity for buyers looking for their next home. A great measure I use of things getting better is the Percent of single family homes under contract versus year ago. As of January 19th, 2010 the percent of single family homes under contract are up from 9% of the inventory Under Contract last year to 14.6% this year, a 62% increase! Condos aren’t yet feeling the momentum of being Under Contract. They are down at 11% this year versus 17.9% last year.
Selecting the right price point and staging your home for sale are the most important factors any seller can focus in on. This is a new market and becoming realistic in your pricing early on can make the difference in your home selling or not.
Well that’s it for the State of the Union in the City of Boulder this month! Stay tuned.
This is Jeff Feenstra of Feenstra Real Estate and Property Management Specializing in Boulder Real Estate Sales and Property Management signing off for now.
I can be reached at 303-931-7320 or emailed at Jeff@FeenstraRealEstate.com. Website address is: www.FeenstraRealEstate.com