Boulder, CO Real Estate Market Update

The Boulder, CO real estate market was cited as the "strongest real estate market in the country" late last year and we've seen some positive signs so far this year. Looking at the overall residential re-sale stats over the past 6 months and comparing the previous 12 weeks to the last 12 weeks, inventory is up about 9% and the median price of a sold listing is down about 3%. Not bad, especially when you factor in that the average number of units under contract is up 94% and the percentage of inventory under contract is up some 79%. I wish we could stop there and just push the easy button, but that's not the total picture.

It's a little optimistic to compare the stats in Boulder at the end of winter to those during the beginning of spring, but even factoring that in we're not doing too bad. However, these stats are across all price ranges and include single-family homes as well as Boulder condos and townhomes. In order to get a more accurate market update, I thought we should probably separate the two and look at the attached (condo) market vs. the detached (single-family) market in Boulder. We've seen some significant disparity in the market based on price point, and this will also take that into account.

The first-time homebuyer tax credit has had some effect on these results, as people buying a Boulder home have tended to gravitate toward the lower-priced homes lately. Given that, one would expect that separating the two market segments would result in the lower-priced attached market faring better than the higher-priced single-family market in Boulder. Based on the following data from IRES as of April 17, 2010, that is in fact what we've seen. First, let's look at the Boulder condo market:

Comparing the previous 12 weeks with the last 12 weeks, the median price of a sold condo or townhome in Boulder has increased 26% from $215,504 to $272,094. There was a spike around February that influences that increase to some degree, but the overall price trend in this market segment is impressive. Now let's look at inventory and under-contract (absorption) results over the same time period:

Despite a significant increase in supply (+22%), this market segment has seen healthy increases in the numbers and percentage of inventory under contract, up 154% and 112%, respectively. Even accounting for the seasonality involved, it's clear that this market segment has a dramatic influence on the Boulder real estate market's performance over the past 6 months.

So, if the Boulder condo market is doing so well, how's the residential (detached) market faring? Not as well. The median price of a sold listing has declined somewhat over the period (down 6%), from $538,250 to $505,354.

Looking at the following chart, we can see that supply (inventory) has remained consistent (up 1%) over the period, while the absorption figures reflect increases of 64% and 60%, respectively.

Although we see a dramatic spike at the very end (most recent) end of the spectrum, Boulder homes are selling, albeit at what appears to be slightly lower prices. Part of this observation may be attributable to the fact that lower-priced homes are selling better than the upper end, so the apparent "decline" in prices may be slightly overstated.

The Boulder real estate market still appears to be faring better than many markets ocross the country. Going into what is typically our most active home-buying season, there is reason for continued optimism. If the federal tax credit expires at the end of this month as NAR is telling us that it will, that may shift some of these numbers a bit going forward.

Boulder's a great place to live, work and play. The quality of life here is outstanding and we have more sunny days that San Diego! If you're interested in the Boulder real estate market, we would love to hear from you! If you're considering relocating to Boulder, CO, we offer free relocation resources and a free, exclusive relocation video entitled "Welcome to Boulder Valley" that you can access here.