Ken Hotard was more than pleasantly surprised by the fact that 408 single-family homes in Boulder County that sold in June.
“Let’s go beyond pleasantly surprised,” says the senior vice president of public affairs for the Boulder Area Realtor Association. “I’m optimistic. I think we’ve turned a corner and I don’t think we’ll likely backslide.”
Barring any major catastrophes or world events, Hotard says he sees a real rebound for the area real estate market in 2012.
Not only did June’s sales exceed May’s 299 sales by 109, but it also surpassed June 2010’s sales – when homebuyers taking advantage of the tax credit were still closing on their new homes – by nearly 40.
“We saw a real surge in single-family home sales in June,” Hotard says. “This was the first time sales in one month of 2011 exceeded the same month in 2010. Before, sales were better than 2009 but were unable to overcome the sales volume helped by tax credits last year. It appears July is on track to be a high-performing month, as well.”
Despite June’s impressive numbers, the single-family home sales for all of the second quarter – 980 – could not meet or beat the 1,103 sales in the second quarter of 2010.
But Hotard points out that Boulder and Longmont both saw more than 100 single-family sales transactions in June, and the overall market has showing strength. In Boulder and Longmont in SF inventory we have a four- to five-month supply of homes on the market. “That’s a good, solid, balanced market for the summer of 2011,” he says.
Home prices for the single-family market continued to impress in June, with the average sales price improving in every market area but one (the plains) and the median sales price increasing in every market area.
On the other side of the coin is the condominium/townhome market, which saw three more dwellings sell in June compared with May, but its 101 total sales were well below the 131 that sold in June 2010.
“It’s a market that’s oversupplied for the demand and even more difficult to finance,” Hotard says. “Appraisals are often difficult, as well. Properties are often in mixed use developments and that, in the lending world, makes them a higher risk.
“That market is essentially flat, with no growth or improvement,” he adds. “It’s more likely to emerge next year as opposed to 2011.”
Hotard attributed the surge in single-family activity to interest rates that are at “absolute historic lows,” healthy inventory of homes on the market and an improving consumer confidence that is exemplified in the Boulder-Broomfield area, as well as the entire metro area and Colorado. The Boulder market communities are seeing sales tax collections increasing between 3 percent and 6.5 percent year to date – evidence of growing consumer confidence and spending.
The area is also witnessing a “bump” in home construction, which indicates a demand in new homes as well as the availability of financing for them, Hotard says.