After several months of double-digit increases in monthly residential sales, things slowed a bit in July with a total of 2,064 homes sold in Boulder, Broomfield, Larimer and Weld counties. This represented a 3.6 percent drop in sales compared with a year earlier and is the first decrease this year. The median selling price is another story, as it reached $302,675 in July, the highest monthly figure ever and a 12.6 percent increase from a year ago. We also recorded the first month when the median selling price actually was more than the median asking price for all the homes sold.
For the year to date, sales total 11,843 homes, up 6.8 percent from last year, and the median price is $299,900, up 14.9 percent from the $261,000 last year. The total volume of home sales is now at $4.273 billion, a substantial 18.9 percent increase over the record pace of last year.
By areas, Boulder County leads the way with a median price of $390,000, Larimer County has the highest price increase of 17.6 percent, and Weld County has the largest increase in sales of 11.8 percent for the year to date.
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The average selling price in Boulder County is now close to a half million – at $494,200 for the year to date. If we look at just the city of Boulder, the average selling price is $665,115l, but if we just include single-family detached homes, the average selling price is now at $958,915. This is an 18.4 percent increase from last year and a 45.6 percent increase from just four years ago.
The average selling price for single-family detached homes in other areas are $553,014 in Louisville, $476,691 in Lafayette, $333,936 in Longmont, $310,870 in Loveland, $373,242 in Fort Collins, $234,071 in Greeley and $333,862 in Windsor.
The biggest reason for the unprecedented increase in selling prices remains the low inventory of homes for sale. At the end of July, there were 3,183 net active listings, and with a demand over the next five months of 8,500 homes we have less than a two-month supply, when six months of inventory is considered a balanced market for supply and demand.
Typically sales in the first seven months of the year account for almost 60 percent of the year’s volume. This puts us on a pace for more than 20,000 home sales and $7.4 billion of sales volume with a median price of $305,000. These all will be record-breaking figures with the total volume representing an 18.5 percent increase over 2014. The only items than might hold it back are the continuing increase in selling prices, low inventory and an expected increase in mortgage interest rates, all of which could cause a drop in demand. Stay tuned!
Dave Pettigrew is a real estate broker at Ascent Real Estate Professionals, 2700 S. College Ave.,
Fort Collins. Contact him at FCRealtor@msn.com or 970-282-9305.