The countdown to ring in a record-setting year for Boulder-area real estate has begun, according to the gains shown by year-to-date sales statistics yet again in October 2015.
Single-family home sales led the way, increasing 11.4 percent year-to-date through October 2015 compared to the first ten months of 2014 – 4,199 units versus 3,768. This marks the second consecutive month for a rise of 11.4 percent year-to-date.
Sales of condominiums and townhomes in the Boulder-area improved 5.1 percent year-to-date – 1,388 units – compared with 2014 – 1,321 units.
In step with a seasonal slowdown, month-over-month sales declined for single-family and condos/townhomes. The 399 single-family homes that sold in the Boulder Valley in October represented a modest 4.4 percent gain compared with the 382 sold the previous month.
Sales of attached dwellings were down significantly – 12.2 percent – with 122 units selling in October compared with 139 in September.
“The year-to-date numbers tell the story,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association. “We’re ahead of last year with solid gains in sales,” he says, noting that inventory continues to be a challenge, particularly for attached dwellings.
Inventory of condo/townhomes for sale in the Boulder-area markets was virtually unchanged, decreasing by one unit (0.8 percent) in October compared to September – 117 versus 118.
Single-family home inventory dropped almost 5.5 percent October to September. “But that was offset by the 4.4 percent growth in sales for the month and 11.4 percent ahead of last year,” Hotard says.
Looking ahead, Hotard expects the Federal Reserve to raise interest rates moderately in late December or January “if the economy continues its strength.” But he does not think a modest increase – or increases – in interest rates will impact the Boulder-area housing market in the short run.
His expectation – shared among many economists – is a move from the long-standing zero percent interest rate to one-quarter or one-half percent. Once rate hikes begin, he anticipates 8-10+ increases over 2-3 years, depending on the economy’s performance and the inflation rate.
Hotard concludes that Boulder-area real estate will continue to “track well” going forward, noting if there is a challenge it will be in the condo/townhomes segment. But he adds that the strength of the attached dwelling market is reflected in the prices commanded. “The lowest increase in average sales price was 4.5 percent in Superior, and in the median it's even stronger with the lowest at 5.6 percent in Lafayette.”
And job growth in Boulder County continues.
“I don't see anything on the horizon that would cause much change in this market through the end of this year, and I anticipate we will finish the year solidly ahead on sales overall and in pricing.”
Owner and Founder
RE/MAX of Boulder