Economy & Economic Development  November 18, 2015

Real Estate Conference: Low unemployment, interest rates to keep driving local home prices

BOULDER — D.B. Wilson, managing broker of Re/Max of Boulder, is forecasting “happy times” for the residential markets in Boulder County.

Happy times for sellers and brokers as home prices have appreciated to some of the highest in the nation, but maybe not so happy for buyers and brokers because they will continue to struggle with those higher prices and a sparse inventory from which to choose.

Wilson, who characterized the local market as stable, said Boulder’s unemployment rate of 2.6 percent and attractive long-term interest rates will continue to drive strong demand.

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He presented a plethora of statistics and charts of where the local real estate market has been in the past during the opening session of BizWest’s annual Boulder Valley Real Estate Conference held Wednesday at the University of Colorado Boulder campus.

DB Wilson
DB Wilson
Angela Topel
Angela Topel

Wilson was joined by Angela Topel, senior broker at Boulder-based commercial brokerage Gibbons-White Inc., who predicted that although 600,000 square feet of new office space will be coming available in Boulder County in 2016, vacancy rates will increase only slightly and rent — $28 to $30 per square foot triple net for Class A space rates — likely will not be affected.

Wilson presented graph after graph that showed home prices appreciating in all cities in the county with the exception of Superior, and that the county has the fewest number of homes for sale in the last 15 years.

“Colorado leads the nation in home price appreciation, and Boulder ranks No. 14 nationwide among cities,” Wilson said.

Boulder is tops in Boulder County with the highest prices — about a $775,000 median price and an average price just under $1 million. “Inventory is of concern,” Wilson said. Not just for single-family homes, but attached dwellings as well.

Wilson said there is a very strong demand for town homes and condominiums that is not being met. “There are 30 percent fewer listings, the time on market has dropped, and prices are going up in that segment, too.”

Topel said the Gunbarrel area north of Boulder “has come into its own.” She said rates for office, retail and industrial space are going up there, but across the board they are till about $10 per square foot less than Boulder’s average for those three segments.

She painted a similar picture for Longmont. “Rental rates are going up in Longmont, but are $10 less than Boulder. … People are looking outside Boulder for lower office rates.”

BOULDER — D.B. Wilson, managing broker of Re/Max of Boulder, is forecasting “happy times” for the residential markets in Boulder County.

Happy times for sellers and brokers as home prices have appreciated to some of the highest in the nation, but maybe not so happy for buyers and brokers because they will continue to struggle with those higher prices and a sparse inventory from which to choose.

Wilson, who characterized the local market as stable, said Boulder’s unemployment rate of 2.6 percent and attractive long-term interest rates will continue to drive strong demand.

He presented a plethora of statistics and charts of where the…

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