One of the most striking changes in our local real estate market over the past few years has been the drop in the number of sales in every segment of the market. In 2010, that trend continued and worsened. Check out these data on the number of sales in local communities in recent years:
A quick glance at these charts makes it clear that the number of sales dropped by 10% to 20% in 2008, while 2010 sales were down from the prior peak by 30% to 40%. The clearest exception are the larger homes, where the drop was more precipitous. For Boulder, and for Boulder’s near neighbors like Louisville, Gunbarrel, Superior and Lafayette, sales of larger homes were off 30% to 40% in 2008 and have stayed at roughly that level.
Two additional notes:
Price & Number of Sales: We noted elsewhere that Boulder and its near neighbors have done far better the communities like Longmont, Erie, Arvada, Broomfield and Westminster in maintaining prices during the recent downturn. With respect to the number of sales, however, the communities further out from Boulder have done a bit better. But that’s not all good news for owners in these communities. If you look at our chart on bank sales, you’ll see that post foreclosure bank sales make up less than 2% of sales for Boulder and its near neighbors, while they make up 15% to 25% of sales as you get further out.
How Quick do they Sell: While the number of sales are down, this doesn’t necessarily mean that all home owners are waiting month after month for an offer. In fact, for Boulder and its near neighbors, 25% to 40% of homes are going under contract in under two weeks, and these numbers have picked up some in the communities further out as well. While there are certainly some motivated sellers out there, this market isn’t necessarily a cake walk for buyers either. One of the reasons that there are fewer sales than there used to be is that there are fewer homes coming on the market for buyers to choose from.