October real estate statistics for the Boulder area showed solid gains in sales for the month, though inventory continues to be low, which shows that demand is there, according to Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.
“We saw some pretty solid gains in sales, despite drops in inventory,” says Hotard.
Sales of single family homes in the Boulder area markets improved 11.4 percent in October compared to September 2017 with 390 homes sold compared to 350. And year-to-date performance is virtually unchanged, improving .16 percent year-to-date through October 2017 – 3,849 homes sold vs. 3,789 through October 2016.
The 126 condominiums and townhomes sold in October increased 13.5 percent compared with 111 units in September. For the year, they improved 4.2 percent, selling 1,250 units compared to 1,200 last year.
Meanwhile, inventory in single-family and attached homes dropped 12.4 and 14.9 percent respectively in October. There were 1,006 single-family homes available for sale and 194 condo/townhomes in all of Boulder County.
“Now November is showing noticeable drops in inventory,” he says, describing a market that has had constrained inventory and high demand for the past two or three years.
“While sales are tracking pretty close to last year in single-family and a slight increase in townhomes and condos, we are not seeing the increase in sales we have seen each year. We’re sort of marching in place,” explains Hotard. “Historically, prior to the Great Recession, we would anticipate sales increases every year.”
There are indications that the lack of inventory will not change soon.
Hotard says the recent city council election resulted in a council majority that favors slow-to-no growth so the housing supply may not improve greatly in the next year or two. Also, the majority of the council is in favor of raising fees on development, particularly commercial, which could result in commercial property being rezoned to support housing. It would mean trading off jobs for housing.
As challenging as that equation is, it comes from being in a highly desirable community to live in. “The fact is, we live in a great place, and lots of people want to live here,” he says of the Boulder area. “There is a lot to be thankful for this holiday season.”
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