The Boulder-area home month-to-month data continues to reflect the effects of low inventory and an economy that’s still finding its footing, but it is performing better than many other markets nationwide, according to Ken Hotard, vice president of public affairs for the Boulder Area Realtor® Association.
“I think the market did exactly what we expected it would do last month,” he says.
The number of single-family homes that sold in November – 261 – was just one or 0.38 percent less the number of homes that sold in November 2013. However, that figure was a 15.5 percent decrease from the 309 units that sold in October.
The sale of 108 condominiums and townhomes in November represented a 27 percent jump compared with the 85 units that sold a year ago, but a 17.6 percent drop compared with the 131 units that sold in October.
Hotard attributes the “anomaly” of year-over-year sales of attached units to a weak market during the fall and early winter months of 2013.
Average and median sales prices stayed on their upward trend, increasing in both markets in nearly every community – the result of the combination of tight inventory, seasonal adjustment, the lack of first-time home buyers and credit that remains tight for some potential buyers, he says.
As expected, inventory continued its downhill slide in November, with 937 available single-family homes compared with 1,045 a year ago – a 10.3 percent dip – and 1,136 homes for sale in October, a 17.5 percent drop.
Year-to-year condo/townhome inventory fell 8.1 percent in November compared with November 2013, 238 units versus 259 units. And month over month, attached unit inventory dropped 9.8 percent compared with October.
Not only were November’s statistics expected, Hotard says they are sound and 2015’s market will likely look much the same.
“Given the depth of the Great Recession, we’re performing at a high level and outperforming most of the country,” he says. “I think the market will improve moderately in 2015.”
While some industry expert expect significant improvement in homes sales next year, Hotard says that requires significant improvement in inventory, “and I don’t see that happening.”
“I don’t see the market and economic factors coming together to support a rapid or significant growth in what is already a strong and healthy market,” he says.
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