As the end of 2016 approaches, statistical data shows lack of inventory continues to be the main driver in Boulder County residential real estate.
"In many Boulder County market-areas there is less than a two-month supply of homes for sale," says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association. "The number of days a property is on the market is inching up, which can be attributed to the time of year, but is also driven by limited inventory," he adds.
As a result, sales have declined. Even so, Hotard says this market is strong, demand is high, and pricing is increasing in double-digits in almost every Boulder County market area. All in all, the market is performing as expected and not all that differently from last year.
- In single-family homes, month-over-month sales in the Boulder-area markets declined 1.8 percent in November 2016 compared to October 2016 – 335 vs. 341 units.
- Year-to-date sales also dropped, falling 9.5 percent through November 2016 compared to the prior year with 4,110 homes sold vs. 4,541.
- Inventory of Boulder County single-family homes declined 16.3 percent, with 687 homes available for sale in November 2016 compared to 821 in October.
- For condominiums and townhomes in the Boulder-area markets, sales dropped 25.2 percent in November 2016 compared to last month – 104 units sold vs. 139.
- Year-to-date attached dwelling sales in the Boulder-area fell 14.1 percent compared to the prior year – 1,597 vs. 1,860.
- Month-over-month condo/townhome inventory declined 19.5 percent in with 124 units available in November 2016 compared to 154 in October.
"This year's declines are comparable to last year's," notes Hotard. "At the end of November 2015, year-to-date single-family sales were down 10.2 percent compared to this year's 9.5 percent decline."
He adds that interest rates are expected to increase throughout 2017 since the Federal Reserve raised rates one quarter of a point this month and signaled at least three more increases in 2017. The anticipated December 2016 hike was already factored into mortgage rates.
"As rates go up we should see slowing in the escalation of home prices, although Boulder County seems to be performing in its own way, not necessarily following traditional norms."