Weld bucks trend of fewer sales, higher prices

	Sales	Med. Price	Sales SPONSORED CONTENT How Platte River Power Authority is accelerating its energy transition Platte River Power Authority, the community-owned wholesale electricity provider for Northern Colorado, has a history of bold initiatives.	Med. Price	% Increase Sales	% Increase Price
Boulder County	3,885	$335,000	3,553	$355,000	-8.5%	6.0%
Broomfield County	847	$286,339	834	$313,727	-1.5%	9.6%
Larimer County	4,834	$240,000	4,571	$255,000	-5.3%	6.3%
Weld County	3,516	$201,000	3,937	$224,000	12.0%	11.4%
TOTAL/AVG.	13,082	$250,000	12,895	$261,000	-1.4%	4.4%

Local home sales and pricing are moderating and the year-to-date sales are 1.4 percent behind last year, with the median price of $261,000 up 4.4 percent. The decrease in home sales and increase in pricing is fairly similar in each county with the exception of Weld County which is posting double-digit increases in both sales and pricing.

August sales in the four-county region totaled 1,888, off 4.8 percent from last year, and the median price was up just 3.7 percent.

Homes still are selling quickly as evidenced by the average of 41 days to offer for the home sales closed this year. This compares with 50 days last year and 77 days in 2012. The inventory of homes for sale has dropped 9 percent, from 6,510 at the end of July to 6,014 at the end of August. With an expected demand of around 7,500 homes over the next six months, the inventory is about a four-month supply, short of the six months required for a balanced market. This supply varies considerably by price range with a supply as low as one or two months in the lower price ranges and a one-year-plus supply in the higher price ranges.

Mortgage rates remain at historically low levels and, in spite of the price increases, homes are more affordable today than they were a few years ago when mortgage rates were higher. As an example, the median selling price in Larimer County in 2008 was $215,000 and mortgage interest rates were at 6 percent. With a 20 percent down payment and a $172,000 loan, the monthly payment was $1,031. Currently, the median price is at $255,000, and a $204,000 loan at 4 percent has a monthly payment of $973.

In the Denver metro area, sales in August were down 7 percent from last year and the average price was up 6 percent. They also are experiencing a shortage of homes for sale, with the supply at the end of August down 13 percent from the previous month. They calculate their inventory at a very slim eight weeks of supply.

The four-county area now is on a pace for 18,400 home sales compared with 18,690 last year, but with the higher selling prices the total dollar volume is still on pace for a record $6 billion compared with $5.76 billion last year.

Dave Pettigrew can be contacted at FCRealtor@msn.com or 970-282-9305.