BOULDER – Boulder-area May real estate sales statistics continue to tell a story of rising prices, strong demand and low inventory.
And in the rising prices category, the May chapter is about Niwot.
“Niwot has become a million-dollar-home spot. While there were only a few sales, 11 over the past two months, both months show an average sales price in excess of one million,” says Ken Hotard, vice president of public affairs for the Boulder Area Realtor® Association.
Niwot’s average and median sales price for May are $1.5 and $1.3 million, respectively, resulting in the second consecutive month for the average monthly sales price to surpass $1 million. The cumulative effect brought May’s year-to-date average sales price across 23 sales to just over $1 million, reflecting a 31.1 percent increase for the year.
Hotard attributes the pricing in part to the characteristics of a number of Niwot properties – larger, well-appointed homes on larger lots. “It’s a product that is not as readily available in some of the other Boulder-area communities,” he added.
Countywide, sales remained strong with an increase month-over-month again in May.
Single-family Boulder-area home sales grew 21.9 percent with 440 units sold in May, compared with 361 sold in April. During that same period, condominium and townhome sales improved 21.3 percent – 125 compared with 103.
Monthly inventory of single-family homes for sale improved for Boulder County, growing 19.1 percent in May compared to April 2016 with 792 units for sale vs. 665. Townhome and condo inventory was virtually unchanged, adding just 2 units, or 2.4 percent compared to April 2016 with 86 units for sale vs. 84.
However, year-over-year sales declined in both housing categories. Single-family home sales fell 11.1 percent year-to-date in Boulder County – 1577 vs. 1773 – while condo/townhome sales dropped 24.3 percent for the same period – 455 vs. 601.
Low inventory is the probable cause of the year-over-year decline, according to Hotard.
“Job growth and in-migration continue to be strong, it looks like demand is still there, interest rates continue to go down and are already at historic lows, so the decrease in sales is probably mostly tied to the limited inventory,” he says.
For now, Hotard is expecting more of the same pattern through the summer months.
“I don’t see anything that’s going to cause a dramatic change in the market as it exists today,” he noted, adding that Boulder and Denver metropolitan areas need to make policy changes to allow more housing to be built in our communities and to provide more options for people.
“In places with good jobs, like we have in Boulder, people want access to housing where there is opportunity for upward mobility. And without an expanding inventory and choices for where to live, prices will likely continue to go up. It makes it a challenging market if you are on the buying side.”
By Tom Kalinski, RE/MAX of Boulder