June sales strong, but weak inventory indicates slowdown in market

Posted by Neil Kalinski on Monday, August 6th, 2012 at 1:18pm.

Although the Boulder area markets improved once again in June, they are already showing signs of slowing down.

The 496 sales of single-family homes in June was a 21.5 percent increase compared with 408 sales a year ago, and the 132 condominiums and townhomes that sold in June represented a 29 percent increase over the 102 sales in June 2011.

Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association, says June’s statistics demonstrate “consistent improvement, but the gains are smaller than the last three months, suggesting a slowdown as we enter mid-summer heading toward fall.”

That’s more apparent if comparing June’s sales with May’s: single-family home sales in June increased only 17.5 percent over the month before, and sales of attached units actually dropped 9 percent.

“The pace of sales volume growth is slowing,” Hotard says.

 And it’s even more apparent in inventory, with 22 percent fewer single-family homes on the market in June compared with last year, and 35 percent fewer attached units for sale. Month-over-month, single-family inventory was down 4 percent in June compared with May and attached-unit inventory was down 2.2 percent.

 “Inventory continues to tighten,” Hotard says. “Inventory’s the story. This is not unique to the Boulder area or Colorado; there is a nationwide shortage of housing for sale That is keeping some buyers on the sidelines, not surprisingly.”

Prices for Boulder-area homes remain consistent with the recent trend in which the “hot part of the market” is single-family homes priced below $700,000, Hotard says.

He notes that the bulk of sales in the single-family market are homes selling for $500,000 or less and, in the attached-unit market, those selling for $300,000 or less.

Despite signs of slowing, the Boulder-area market is showing good stability and consistency, Hotard says.

 “I have reason to be optimistic that we will continue these positive numbers through the end of the summer, but they’ll be lower than historical experience,” he says. “They’re still positive."

Neil Kalinski

RE/MAX of Boulder, Inc


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