Boulder's Bipolar Real Estate Market

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by Osman Parvez
If you talk to a real estate agent in Boulder, you'll probably hear that the market is hot right now.   They're not lying.   It's true, but it's also not the full story.  

As my dad used to say, telling a partial truth isn't lying but it's not the same as the complete truth.   The complete truth is that the Boulder real estate market is very active in select locations and select price ranges.  

Let's look at price ranges.   The following charts show inventory (by price range) in the City of Boulder.   Each pie shows the breakdown between available homes and those under contract.  

House inventory in Boulder, $301,000 to $500,000 on 6/27/2012

This first tranche covers houses with asking prices from $301,000 to $500,000.     This is the price range for a large number of people;  first time buyers, investors, and sometimes downsizing retirees.     At the current time, more houses are under contract than available for purchase.    We've seen bidding wars repeatedly and our strategies to help buyers and sellers now reflect extremely active market conditions.

This has been the pattern since late February.   I'm advising my buyers to see inventory the day it hits the market and be ready to pull the trigger.   I've even started keeping a laptop in the car so we can write an offer on the spot, if necessary.  

Now check out a chart for higher-end, more luxurious homes in Boulder

House inventory in Boulder, $1MM to $2MM on 6/27/2012

Sellers of higher-value homes (and their agents) would probably like you believe that the frenzied market activity, bidding wars, and scarcity occurring at lower price points also exists at the upper end of the market.    This analysis say otherwise.

Yes, sales volume of higher end homes has increased this year but there's a mountain of unsold inventory - not to mention expired/withdrawn listings that have yet to return to market.   This is why I'm still advising my buyers at this price range that an opportunity still exists to get a great deal.    This might be an good time to focus on downtown real estate, or homes with protected views close to downtown.   The key is to be patient, negotiate aggressively, and be cautious.    If you want to get a good deal, seeing a lot of inventory is mandatory and if the house doesn't feel right, or the seller is simply asking an unreasonable number, walk away.     Negotiated discounts at the higher-end should be much greater than lower price levels, but not all sellers will see it that way.

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---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.