Bipolar Boulder Real Estate [Analyze This]

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by Osman Parvez
Word is out, Boulder real estate is hot again.    Buyers no longer have the upper hand, right?
Wrong.

It depends on what price range we're talking about.    If you want to negotiate well, you have to know  market conditions relative to location, price, and condition.   There is no short-cut to knowing the comps, which is one of the reasons you need a good agent.

Boulder Inventory Analysis
Take a look at the following chart;


You're looking at current inventory of houses priced under $500,000 within Boulder city limits (no Gunbarrel, Country Club or Heatherwood).     And by current, I mean today - May 9, 2012.     I set the floor of the search criteria at $301,000 but the reality is that nothing priced below $325,000 exists except for Affordable Housing.    Well, nothing you'd want to buy anyway. 

There are now more homes under contract than available.   I can't remember the last time this happened in Boulder.  It's as if all the buyers were just waiting around, hoping for a sign of an improving job market, an improving stock market, and obscenely low rates.    ... uh, wait a minute.

Well, don't say I didn't warn you.   This spring, we've engaged in bidding wars - over and over again - at the entry level of the market.   As such, our recommended strategies have also changed.  We're now advising our buyers on how to write strong offers without over-paying for the house.   It's a completely different mindset than the past three years, one which has caught several of our buyers off guard. 

Now take a look at the next chart;


You're looking at the higher-end of the market, current inventory priced between $1mm and $2mm.   Again, we're talking about inventory today - not last month. 

At this price range, only a quarter of available inventory is under contract.    Buyers still have the upper hand when it comes to negotiation, but your strategy should be based on facts about the house itself and a careful evaluation of the market.   And here, an agent deeply familiar with the comps has the advantage.  Key considerations include;   time on market, updates, condition, layout, location, improvability, lot size,  and much much more. 


Pro Tip:  Analyze, Don't Panic
Buyers at all price ranges are right to obsess about valuation.    Housing is illiquid, prone to expensive maintenance, large shifts in value, and often requires financing for acquisition.    Most people buy a house rarely, so it's not a choice you're likely to revisit in the near future.

Sadly, many buyers rely on notoriously WRONG information from places like Zillow to help them make a determination of value (read Zillow Sucks, Wise Up)    I've seen the results of horrible investment choices based on erroneous information.  It's not pretty when hundreds of thousands are left on the table when they should be in your pocket.   

If you want to maximize your real estate opportunity, get expert advice from an agent who is deeply familiar with market conditions in Boulder.    Give me a call at 303.746.6896.

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.