Boulder-area housing sales in August saw single-family home sales dip while condo and townhome sales pushed upward.
Both markets share a common factor that is driving the rate of sales – and that factor is inventory.
"As the number of homes available for sale goes up or down, sales follow. It's a correlative pattern that has shown for some months now," says Ken Hotard, vice president of public affairs for the Boulder Area REALTOR® Association.
"In attached homes in August, inventory was up, which supported the increase in sales," says Hotard.
Townhome and condominium sales improved 9.2 percent in August 2017 compared to July – selling 142 units vs. 130. Inventory also improved, rising 21.3 percent with 239 units available this month compared to 197 in July 2017.
Meanwhile, Hotard remarks that in single-family homes, inventory was unchanged and sales were down slightly.
Statistically, single-family home sales decreased .3 percent in August 2017 compared to July, selling 436 homes vs. 448. Inventory for single-family homes was virtually unchanged over the same period, declining a modest .02 percent with 1,157 homes for sale vs. 1,183.
He says last month followed a similar pattern when sales in both categories declined. July 2017 inventory dropped 4.3 percent in attached dwellings and was near unchanged in single-family.
"While this continued correlation between sales and available inventory is interesting, it is not unexpected," he says, noting that demand for homes in Boulder County is strong even as home prices continue to rise, albeit at a more moderate pace.
"Homes at the higher end of the market are a bit over-supplied, which gives buyers more choice and the ability to negotiate. In the under $1 million price range, demand is strong and homes move quickly."
Year-to-date sales are tracking close to last year's performance in both markets. In single-family homes, sales in Boulder County are virtually unchanged, falling .013 percent through August 2017 compared to the prior year through August 2016 – 3,069 homes vs. 3,073.
For Boulder-area condos/townhomes, year-to-date sales rose 6.6 percent through August 2017 – 1,002 units vs. 940.
"Typically, real estate sales improve going into the fourth quarter. I expect to see September sales bounce back after the new school year settles in and people prepare for winter."
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RE/MAX of Boulder