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Boulder County, Colorado-Market Update courtesy of RE/MAX Alliance

By
Real Estate Agent with RE/MAX Alliance

12.09
REAL ESTATE MARKET >> UPDATE
+ RE/MAX Alliance | Boulder Valley

As we approach the first double digit year of this new
century, the Boulder Valley real estate market appears
to be awakening from the past few years of a gradual
decline in sales activity. Figures for the past two months show
an increase in the number of sales of single family homes and
attached units as compared to 2008. Below are some sales
numbers for Boulder County from IRES, the Northern Colorado
MLS.

In October/2009 there were 232 single family homes sold
and 91 attached units sold. This compares to October/2008
where 228 single family homes sold and 75 attached units sold.
Not a signifi cant change, but a start. For November/2009 there
were 226 single family homes sold and 78 attached units sold.
In November/2008 there were 133 single family homes sold and
50 attached units sold. That is a noticeable increase in sales
activity.

What might be some of the reasons for this potential rebirth of the Boulder Valley real estate market?
Here are some thoughts.


Affordability: It’s no secret that home values have been negatively impacted over the course of the past
few years. In a declining real estate market there are fewer buyers and more sellers. When home values
stabilize, the motivation of buyers begins to escalate. There’s always that fear (real or imagined) that
they will “miss” the bottom of the market. Across most aspects of the local real estate market homes
are more affordable today than they were two or three years ago.


• Mortgage Interest Rates
: Home mortgage interest rates have remained relatively stable for the past
couple of years vacillating between 4.875% and 5.875% for the traditional thirty-year fi xed rate
conventional or government loan. Again, the fear that interest rates will begin to rise becomes a
motivating factor in buyer’s minds.


Government Assistance: How successful the government’s fi rst-time home buyer assistance program
has been is somewhat debatable, but it has resulted in providing a positive twist to a stagnant real estate
industry. The extension of the program to include current homeowners should increase that awareness
and interest.


• Investors
: These are opportunity seekers. Their objective is to look for diamonds in the rough;
properties that have upside potential and provide a worthwhile return on their investment. They could
be a young couple buying a condo as a rental property or someone purchasing a property that requires
some sweat equity and wanting to either “fi x and fl ip” it or hold it long term to build equity. Then there
are the investors who purchase in partnerships, looking to hold property, and trading up and down over
time. Investors are an active part of the current real estate market.


• Sales Values:
Real estate is a bottom up business. When real estate markets decline, it takes time for
them to become reenergized. They are like running in water, it takes effort to get them going and keep
them going. When they do restart, as we are possibly experiencing now, the lower valued portion of the
market is always the beginning point. It’s the entry level homes and attached units that need to sell in
order to foster an upward shift in buyer activity. Once that portion of the market gains momentum, then,
hopefully, it will create a wave of activity that fl ows into more expensive homes selling. That’s where the
Boulder Valley real estate market is now, beginning to generate some positive energy.

 

 

Posted by

Rob Kelly-RE/MAX Realtor-Louisville, Colorado

"Thinking of Real Estate?  Think of Rob!"

www.RobKellyColorado.com

robertkelly@gmail.com

720-284-9211

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