Real estate is clearly still moving strong in Boulder and Longmont. This year we have been dealing with an influx of new residents to Colorado and those that want to take advantage of the selling their home in a now, "seller's market." This combo has created a frenzy for those trying to buy their first home and competing with buyers who sold their home and investors that pay all cash. Normally one would see a first-time buyer in the market looking for a condo or a townhome. With the restrictions on condo building for the past few years, this has led first-time buyers to look at single family dwellings that have prices above their means. Some of the moratoriums have been lifted for condominium developers this year and FHA guidelines for condo associations have been revised, all leading to a rise in condominium sales. Below are two real-time graphs that show the differences between Boulder and Longmont condominium sales for the past three years to the present month data for September 2016.
Interestingly in the Closed Sales graph, we see that there is a direct influx and reduction in the sales pattern between Boulder and Longmont for the past three years. Highest number of condo sales in Boulder where reported in June 2014 of 109 closed transactions. Shortly after, in August 2014, Longmont had their highest closed sales at 40. There is a trend that started at that time that made Longmont become a secondary choice to Boulder due to inventory and purchase price.
Let's look at the purchase price data. Lots of changes in the velocity of the purchase prices. Boulder finds their highest condominium pricing in September 2016 of $475,000. Compared to Boulder, Longmont's highest condominium sales price was $371,377 in March of 2016. This data would indicate that those wanting to buy are probably being pushed into a different type of home, like a condo or townhome, due to the overall rising prices in the area.
Understanding when you might have the most leverage when purchasing a home can be sorted out here by looking back at the beginning of the year. The price in Boulder for a condominium in January 2016 was only $316,000. The sales price for Longmont in January 2016 was $220,000. The difference between now and beginning of the year is significant. This could be from less buyer interest, less people walking through homes for sale and making offers. Perhaps the new buyers think that the end of the year is not a good time to buy or sell. We would have to disagree, just by examining the facts. To buy today the same condominium purchased in January would cost you $159,000 more in Boulder and a mere but still substantial increase of $63,500 in Longmont.
Want more information about what is actually happening in the marketplace for your specific city? Contact us today and we would be happy to discuss your questions.
Thank you for the continued opportunity to serve your real estate dreams.