Martin Acres Market Update [Analyze This]

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by Osman Parvez
Last week, the following email came across my inbox.

I have been watching house prices in Martin Acres.  I want to offer an opinion that many of the houses that go on the market are priced at $50k-$75k under what they could get, and hence, are selling immediately with multiple offers.  This brings down the price of everyone else's house.  In my opinion, some realtors care more about selling a house quickly than they care about how much they get.  I realize that the people who sold their houses cheaply are now elsewhere, but wanted to express my opinion.  I have talked with a few realtors who agree with me.

Well blog readers, is she right?

This week, I decided to take a deeper look at the market in Martin Acres.    The results were surprising.   Take a look at the following chart. 

The chart above shows the median sale price for houses in Martin Acres since 2008 (blue bar).    The year over year change is also shown (pink line).  

Prices rise quickly when the market is strong.    When the real estate cycle turns, prices fall slowly.        This is easily observed in the year over year (pink) price changes.    From 2008 to 2009, the median price rocketed 4.4% upward.   Since 2009, the median has trickled downward very slowly.   Down 0.3% in 2010,  down another 1% in 2011, and down 1.5% this year (to date).  

As you know from reading last week's blog post, "Don't Leave Money On The Table,"  I strongly agree with my concerned Martin Acres neighbor.    With record low inventory and intense buyer competition for desirable homes priced under $500,000,  sellers are mistakenly under pricing their homes.  

What can you do?   

1.  Choose your listing agent carefully.  
If you'd like to interview me, call 303.746.6896.   I can help you get the maximum possible price without risking excessive days on market.    It's all about strategy.

2.   Track the market.  
My last client edition Silver Fern Report included detailed charts showing how little inventory exists under $500,000.   I also showed that intense demand continues for homes in that sector.   This is typically the slowest time of year for real estate in Boulder, but not at the entry level.    If you'd like to subscribe to my report, sign up HERE.

Next month's Silver Fern Report will include a research spotlight on Martin Acres, including negotiated discounts, sold volumes, days on market, and historic popped/remodeled house sale prices.    If you're thinking about putting serious cash into a pop-top in Martin Acres, you're right to worry about over capitalizing the house.   The capacity of this neighborhood to carry higher mid-market prices may surprise you.

---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.