Year End Economic Outlook Update in Broomfield and Westminster!

 Westminster, CO - December/2012 Economic Snapshot A look at the current real estate market; provided by RE/MAX ALLIANCE!

"This holiday season as you drive through neighborhoods admiring the festive decorations there’s one thing you won’t see many of – for sale signs.

2012 has been a year of dynamic change in the real estate market across Metro Denver, the Boulder Valley, and Northern Colorado. The year started as a “soft” buyer’s market with low mortgage interest rates and a modest number of homes for sale. Inventory began to grow in the spring, as it normally does, but had a difficult time keeping pace with demand.

The market had shifted from the “soft” buyer’s market to a more “balanced” market. Home values had stabilized and, in certain value ranges, were beginning to increase. Late spring led to summer and the market once again adjusted. It had become a “soft” seller’s market defined by even lower mortgage interest rates and decreasing inventory.

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In Broomfield/Westminster, active single family home listings through MetroList (the Denver Metro and Suburban Mountains MLS) declined 9% in November/2012 compared to October/2012 (713 vs. 782).

If December/2012 mirrors that same pace, there will be approximately 650 active single family home listings on the market in Broomfield/Westminster at the end of the year. 2011 ended with 817 active listings; 2010 ended with 1462 active listings. Through November/2012, Broomfield/Westminster single family home sales are up 15.05% (3729 vs. 3241) compared to through November/2011; attached unit sales are up .64% (622 vs. 618) for the same time periods. The overall market is up 12.74% (4351 vs. 3859).

The Absorption Rate (the time it takes for the market to fully sell through assuming a constant level of sales activity and no new inventory) stands at 64 days year to date for single family homes in Broomfield/Westminster At the end of November/2011 the Absorption Rate was 96 days.

A “balanced” real estate market, where buyers have a sufficient number of homes to select from and sellers can expect to sell their homes in a reasonable amount of time and at a fair market value, is around 120 days. Based on the current Absorption Rate of 64 days for Broomfield/Westminster, we are experiencing a seller’s market.

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A portion of the void in inventory has been filled by new home construction across pocket areas of the Front Range. Existing platted subdivisions are being completed and dirt work on new projects is evident in many areas. Look for this to persist as demand for housing throughout Metro Denver, the Boulder Valley, and Northern Colorado continues.

Where does the local and area real estate market go from here as we say goodbye to 2012 and venture into 2013?

There are no certainties, but there are some expectations. Mortgage interest rates should remain at or close to historic lows. The Federal government is still attempting to get a grasp on an economy that appears to have a mind of its own. Home values will continue to increase. Not at the double digit rate we experienced at times in the past, but at a more moderate pace. Bank foreclosures and short sales won’t be as prevalent as they have been the past few years. And - resale inventory will remain at relatively low levels as buyer demand in a “strengthening” seller’s market persists."

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Look for the Broomfield/Westminster real estate market to continue its customary path this fall as sales activity and inventory levels decline through the balance of the year.

Home mortgage interest rates should remain at historical lows for the traditional thirty-year fixed-rate
loans, Conventional and FHA / VA.

New home construction will continue to increase across the Denver Metro area, Boulder Valley, and Northern Colorado as new subdivisions come on-line and in-fill projects are built out.

As noted by the chart above, home values have increased over the past year in Broomfield/Westminster. With the increase in sales activity and decrease in available inventory … scarcity will create demand!!

© 2012 RE/MAX Alliance. All rights reserved.

Thanks for reading this,  Dan Hopper.

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Dan Hopper specializes in assisting home owners to avoid Foreclosure in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.

Thank you for reading, "

Year End Economic Outlook Update in Broomfield and Westminster!

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