- Coldwell Banker releases report.
- Report covers Boulder and Northern Colorado.
- Inventory shortage haunts Colorado.
The Boulder and Northern Colorado housing markets have gotten off to a better start than the Denver-area housing market.
At least by one metric.
Home closing rose 20.6 percent and 14.5 percent, in Boulder and Northern Colorado, respectively, in February from January, shows an analysis of IRES MLS data by Coldwell Banker Residential Brokerage – Colorado.
By comparison, as InsideRealEstateNews.com reported on March 6, Denver-area closings fell by 21 percent on a month-to-month basis, according to Metrolist.
Year-over-year, closings in Boulder dropped by 7.7 percent in February and were up 3.1 percent in Northern Colorado, which includes Boulder, Longmont, Loveland, Greeley and Fort Collins.
However, even the year-over-year drop in Boulder bested the 11 percent drop in the Denver area.
Of course, the numbers are much smaller in Boulder and Northern Colorado.
There were 2,645 closings in the Denver area last month, while there were only 633 in Northern Colorado and 228 in Boulder.
There were 2,987 unsold homes for sale in Northern Colorado in February, a 13.8 percent drop from the 3,466 in February 2013 and a 5.8 percent gain from the 2,822 in January.
The average price of a home sold in Boulder in February was $413,000, down both from $418,000 in February 2013 and from $420,000 in January.
In Northern Colorado, the average price of a home sold was $251,000, up from $238,000 in February 2013, but down from $256,000 in January.
In the Denver area, the average price of all homes sold was $294,565, up 6 percent from $276,976 in February 2013, and down 3 percent from $302,251 in January
In Boulder, there were 986 unsold homes on the market, a 19 percent drop from the 1,218 in February 2013, but a 9.8 percent increase from January.
In the Denver area, there were 7,443 active listing in February, a 10 percent gain from the 6.786 in February 2012 and a 2 percent drop from 7,610 in January.
The most important metric is the inventory, said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado.
“It is a similar story up north and in the Denver area,” Mygatt said.
“The lack of inventory is driving everything else,” he said. “It effects all the other numbers. That is going to be the tale for this year.”
In fact, it is a statewide issue, Mygatt said on Tuesday.
“It is as true in as Colorado Springs as it is in Fort Collins,” Mygatt said.
“I was in Breckenridge and Vail this morning and I’m now addressing brokers in Aspen,” Mygatt said.
“Wherever I go, no matter what the market, brokers say the biggest single challenge is a lack of inventory. It’s not that there isn’t demand. People want to buy, but there is nothing to buy.”
However, there needs to be an asterisk next to that last statement.
“As tight as the inventory is, there are still about 7,400 homes on the Denver market that have failed to sell,” Mygatt said.
“The thing is, people are not going to buy junk. People are choosing not to buy these homes. They won’t buy a home simply because they have to buy because it is the only home out there,” he said.
As much as the market needs more supply, that serves as a lesson to prospective sellers, he said.
“It’s a mistake to think you can write your own ticket and put a junky home on the market and think it will sell, even if it is vastly overpriced,” he said.
Interested in buying a home in Boulder? Please visit COhomefinder.com.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.