BOULDER – Significantly more homes became available for sale in June to the benefit of would-be Boulder County buyers looking for their next home, according to real estate statistics published by the Boulder Area Realtor® Association.
The jump in inventory is a welcome surprise in a real estate market marked by persistent low inventory and high demand.
The largest inventory increase – 36 percent – showed in condominiums and townhomes for sale in Boulder County in June 2016 with 117 units available compared to 86 in May.
Inventory for single-family homes improved 15.4 percent in June compared to May – 914 units versus 792 units.
The surge in inventory appears to be price related, notes Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.
“The likely explanation for the significant inventory jump is that market pricing has reached a level that is moving sellers to enter the market,” said Hotard.
“It’s that combination of price point and life position. When they converge people make a move to sell,” he added.
With Boulder County’s ongoing tight supply of housing and continued high demand, Hotard calls the additional inventory “good news,” particularly in the condo/townhome market.
Even with June’s inventory increase, Boulder County residential real estate trends continue to see tight inventory, as well as month-over-month increases in sales and rising prices.
Single-family home sales countywide increased by 18.9 percent in June 2016 compared to last month – 523 units versus 440 – while sales of condominiums and townhomes grew by 34.4 percent month-over-month with 168 units sold over 125 units.
Meanwhile, prices continue to rise. Year-to-date, the city of Boulder’s average sales price eclipsed $1 million and median sales price exceeded $865,000.
But 2016 year-to-date sales continue to lag behind 2015.
In the first six months of 2016, sales of single-family homes in Boulder County fell 9 percent with 2,112 homes sold in 2,016 versus 2,322 in 2015. Condo and townhome sales dropped 20.8 percent with 626 units versus 791 units.
Looking forward, Hotard expects a continued increase of month-over-month sales through July, which he says, is not always the case. “Often there is a pullback beginning mid- to late-summer and certainly by September. With the additional inventory in the market, July is looking pretty good.”
Ongoing demand is fueled in part by population growth in Boulder County and statewide. Colorado was the second-fastest growing state in the U.S. between 2014 and 2015, according to recent population estimates from the U.S. Census Bureau.
And Boulder County has additional draws.
Hotard noted the Boulder area’s “abundance of well-paying, desirable jobs with upward mobility” and continued low interest rates provide the ingredients to sustain a vibrant residential real estate market.
All of the demand adds emphasis to one persistent issue – the housing shortage.
“We need to urge community leaders to improve the supply of housing, affordable and market rate and encourage different types of housing products so people have more choice in the homes they live in and the lifestyles they choose,” Hotard said.
“It’s the one way to address the squeezing of our market and some of our potential buyers.”
By Tom Kalinski, RE/MAX of Boulder