Although the housing market looked anything but bleak in May, it was actually doing better than thought, and June’s statistics show even more improvement.
A change to the IRES search screen caused the Boulder Area Realtor® Association to fail to include all homes on the market in its May inventory statistics. After making the necessary calculations, it was found that 1,400 homes were for sale in May versus the 942 single-family homes reported, and 393 attached units compared with 206 reported.
Even with the change in May’s statistics, single-family inventory improved 13.4 percent in June with 1,588 homes on the market, and condominium/townhome inventory improved 4.3 percent with 410 units for sale.
The inventory of detached homes for sale in June 2014 dropped by just 11 units or 0.69 percent compared with June 2013, and the number of attached units fell 4.9 percent compared with the 431 units available in June 2013.
“We saw some pretty good gains in single family and less improvement in the attached market,” says Ken Hotard, senior vice president of public relations for BARA. “It should be happening that way; it was quite surprising when we had those low numbers last month.”
Hotard says the revised inventory numbers reflect a somewhat more balanced market going into second quarter, with more properties for sale and increased buyer activity. Despite the adjustment, the Boulder area is still experiencing a historically low inventory and historically high home prices. Listings in Boulder County are down approximately 6.5 percent year-to-date compared with 2013. And median sales prices are up approximately 2.5 percent, with average sales prices improving by more than 4 percent.
While the sale of single-family homes dropped 7 percent in June compared with a year ago – 451 units versus 485 units – they increased 11.7 percent compared with May, when 404 units sold.
The condo/townhome market did even better, with the year-over-year drop in sales of .057 percent representing a difference of only one transaction – 172 units versus 173 – and attached-unit sales improved 10.3 percent in June compared with May in which 156 units sold.
“That shows a healthy improvement in the market heading into the summer,” Hotard says. “This continues to represent a very solid, stable housing market in Boulder-Broomfield counties.”
But Hotard points out that “weak income growth, increased student loan debt and rising prices result in downward pressure on purchase demand.”
Hotard remains impressed by how the Boulder-area real estate market has stood the test of time – and the economy.
“This market has been absolutely incredible in terms of its strength, resilience and stability,” he says. “Except for the very early stages of the Great Recession, we didn’t see any significant shifts in these markets except for fewer sales.”
And July is not likely to look much different than June, Hotard predicts.
“I don’t sense urgency in the market,” he says. “The economy, while improving, continues at a sluggish place; that takes an edge off of markets.
“It’s a fairly peculiar market, albeit a strong one.”
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