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Boulder Real Estate – Kearney Realty Co.
303-440-6464 info@KearneyRealty.com
Luxury Market Update

Luxury Market Update

Boulder County Luxury Report Sales 2017 was a record year for luxury real estate in Boulder County.  During the year a record 490 properties sold for over $1 million.  Eclipsing by 15% last years total of 426.  As you can see by the chart below, the growth of the luxury market segment in this area has more than doubled since the pre-recession high in 2007.  The main factors causing this impressive growth are price appreciation and capital improvement.  Overall, the average home in Boulder County has appreciated approximately 60% over the past five years.  This has naturally brought homes that were not previously considered “luxury” into the $1 million plus range.  We have also seen an overall improvement in the housing stock over the past decade.  Expensive homes have been built on vacant lots and a significant number of homes have been extensively updated and expanded turning “stock” homes into showcase homes.  If you have had any work done recently to your home, you know that contractors are not easy to find and prices for renovations have gone up significantly.  Another factor in the quick rise in prices are the required “green” features and high permit fees which add to the cost of construction. The top priced sale for the year in the MLS was $6,700,000 and the median price for all sales over $1,000,000 was $1,370,000. Analysis of Current Inventory The table below shows the current listings in Boulder County by price range (as of February 24, 2018).  Let’s first talk about the orange column which shows the percentage of homes that are currently under contract.  Not surprisingly...
Boulder Real Estate Market – 2017 Year in Review

Boulder Real Estate Market – 2017 Year in Review

2017 Year In Review Half-way through 2017 we saw a shift in the Boulder area real estate market.  The first half of the year was a continuation of the very hot market we experienced in 2014-2016 with rapid price appreciation, low inventory and a strong sellers’ market.  During the second half of the year we experienced a softer market characterized by homes staying on the market longer, more price reductions and more balanced negotiations. Here are some of the key statistics in Boulder County from 2017: Total sales were down 5% to 4,680 sales. The median price for all sales in 2017 was $480,000 which is up 6% from 2016. There were 490 sales that exceeded $1 million during the year which is 64 more than a year ago, 124 more than two years ago and 301 more than five years ago. At the end of December there were just 777 residential properties on the market in Boulder County and 331 of these were already under contract. This represents a low mark since I have been keeping track. Over the past 10 years, owning real estate in Boulder County has been a great investment.  Cumulative appreciation since 2007 has exceeded 60% with most of that occurring during the last five years. What’s Been Driving The Market? The United States is 8 ½ years into an expansion. This represents the 3rd longest consecutive expansion period since the Great Depression.[1]Colorado and especially Boulder County have benefitted from the strong economy. Colorado added approximately 60,000 new residents from migration and 56,300 new jobs in 2017. The unemployment rate in Colorado is 2.5%...
In 2017, Boulder Real Estate Negotiation Tipped Toward Buyers

In 2017, Boulder Real Estate Negotiation Tipped Toward Buyers

In 2017 in Boulder County, the average negotiation off of list price for all sales was 1.3%.  In 2016 it was .36%.  However, when you look at it more closely both over time and across price ranges there are some good market insights.  The chart below shows the sales in each of the last four quarters separated into three categories; those that sold for below the list price (blue), those that sold for exactly list price (orange), and those that sold for above list price (grey). As an example, let’s look at the second quarter of 2016 which is the second group from the left.  During that quarter Boulder County was ranked #1 in the nation for appreciation by FHFA.gov.  During the quarter, 30% of the sales went for less than the asking price, 20% went for exactly the list price and 50% of the sales sold for a price in excess of the asking price.  This past quarter 56% sold for less than list price, 23% went for exactly asking price and 21% went for above the list price. The overall take away is that buyers have gained some traction in negotiations.  There are two trend lines that intersect.  The upward trending blue line represents the trend of properties selling below the asking price.  The downward trending grey line shows the trend for homes selling at a premium.  With the information above we can conclude that the overall market is trending away from a strong sellers market.  But in real estate broad generalities are not always accurate.  When we look at individual price ranges we find that the...
The Tax Bill and Its Effect on Real Estate

The Tax Bill and Its Effect on Real Estate

The recently passed federal tax bill will definitely have an impact on real estate.  In general markets with high taxes and high values will be most affected.  Despite the recent increase in local property taxes, Boulder County is considered a low property tax area compared to other parts of the country.  However, we are a high value market.  Here is a summary of the main points of the tax bill that affect real estate. Also, if your selling your property or house, we buy houses at a good price. Mortgage Interest Cap – This is in regards to how much of the interest paid for mortgages can be used as a deduction.  For those whose mortgages balances are less than $750,000 this will not affect anything.  Previously the cap was $1 million and it has now been reduced to $750,000.  Not many people have loans in excess of $750,000, but in our area where the luxury home market is very robust, we may see fewer buyers able to make those purchases. The interest on the first $750,000 is still deductible.  This may dissuade some luxury home purchasers to buy a less expensive home, thereby reducing the demand for the very high end. Local and State Tax Deduction – The Boulder County Treasurer was inundated before the new year with property owners pre-paying their property tax bill in advance.  This was in response to the section of the tax bill which caps the deduction for state and local taxes at $10,000. Previously, homeowners were able to deduct from their federal tax return the amounts paid for state income tax, various ownership...
The Real Estate Cycle – Where Are We Now?

The Real Estate Cycle – Where Are We Now?

The Real Estate Cycle Approximately 2500 years ago Heraclitus of Ephesus said “The only thing that is constant is change”.  In the moment we sometimes forget that forces larger than we can see are slowly moving culture, markets and people.  Everything we see is changing, however the rate of change makes a difference. We notice more readily the melting of an ice cream cone than the erosion of a mountain.  It’s normal to only take note of what we can readily see.  However, there is wisdom in taking a longer view. Real estate is cyclical.  There are many factors involved, but the peaks and valleys of the real estate demand and value have been shown to have a relatively consistent cycle of approximately 18 years.  Economist Homer Hoyt made a detailed study of the Chicago real estate market and the broader United States real estate market and found that it has run its course in a steady 18 year rhythm since 1800.  There have been exceptions that have disrupted the normal cycle such as The Great Depression, World War II and the post war boom but on average, the business cycle and the real estate cycle have been very consistent including the 18 year cycle than ended in 2008.   The infographic above shows the four phases of the real estate cycle.  Here is more information on each of the stages of the cycle.  Most studies present Recovery as the first phase of the cycle, but since the last recession was so memorable I think it makes a good starting point. Recession  Think back to what was in the news...
Boulder Area Real Estate Update – The Kearney Report Q2-2017

Boulder Area Real Estate Update – The Kearney Report Q2-2017

I have just completed the latest edition of The Kearney Report for the second quarter 2017.  The goal of this report is to give you a quick understanding of the statistics and trends in the Boulder County real estate market. You can view the entire report below or you can download the PDF here.  The Kearney Report 2nd Quarter 2017 Real Estate Market Update During the second quarter of 2017 the Boulder area real estate market continued to be a strong sellers market, but towards the end of the quarter there was a change in the market.  In this summary I will discuss these trends as well as discuss what we might expect to see during the third and fourth quarter of the year. During the second quarter of 2017 there were 1,459 sales in Boulder County which reflects an 8.3% drop from the same quarter of the previous year. The median sales price during the quarter was $500,000 which is ironically 8.3% higher than it was a year ago.  Inventory this year has been been consistently higher than the past two years and this has given buyers more choices when looking.  This was especially true at the end of May when the levels of active inventory were above 2016 and 2015 levels, equal to 2014 levels and just below 2013 levels.  During the second quarter, 41% (50%) of the homes sold for a price above the list price, 22% (20%) were at the asking price and 36% (30%) were below.  When comparing this years numbers to last years, which are shown in parenthesis, it’s clear that the market...
Fireworks from 405 Hapgood

Fireworks from 405 Hapgood

The conventional place to watch the fireworks in Boulder is from Folsom Stadium.  But this year I watched them from the roof of my listing at 405 Hapgood.  405 Hapgood is located on the lower slopes of Flagstaff Mountain and has 180 degree views of Boulder.  The house is a great candidate for a remodel or a scrape and rebuild but what a place to host a fireworks party from your rooftop deck cladding!  Here is a video that shows the finale from the 2017 Boulder Fireworks Show....
Boulder Neighborhood Guide 2017

Boulder Neighborhood Guide 2017

Boulder Neighborhood Guide I realized a few years ago that people coming from out of town were having a hard time characterizing the different neighborhoods within Boulder.  In response I created the Boulder Neighborhood Guide. In this report I have split Boulder into eleven different areas and present the lifestyle highlights, traffic school online california, shopping districts, local recreation and real estate statistics for each area. If you’re interested in learning more about the different neighborhoods within the City of Boulder this is your guide. Click this link to view and download the report.  Boulder Neighborhood Guide 2017 It is recognized that Boulder is a great place to live but the neighborhoods in Boulder are a bit hard to peg. Boulder was developed over time in a piece-meal fashion. The result is that many of the neighborhoods are only a few hundred homes in size. It is common to have two adjacent neighborhoods developed at different times and with completely different price ranges. While this report is not comprehensive, it will give the reader valuable information from which to start understanding the real estate market in Boulder. I will highlight the major neighborhoods in each area. If you are visting Boulder you may be interested in where to stay, where to eat, things to do and how to get around.  You may also be interested in walking some of Boulder’s neighborhoods.  I have created a few self-directed walking tours in Boulder that may be fun if you are visiting town.  To access all of that information go my “Visiting Boulder...
405 Hapgood Street $1,850,000 – SOLD!

405 Hapgood Street $1,850,000 – SOLD!

Rare .8 Acre View Lot in West Boulder 405 Hapgood Street  Boulder, CO 80302 for all of the details and photos go to www.405Hapgood.com Offered at $1,950,000 A rare opportunity to secure one of the last large building sites in west Boulder.  This is the perfect location to create your dream home! Prime view lot at the base of Flagstaff Mountain offers privacy, great views, mature trees and .8 acres.  This location offers the discerning buyer the opportunity to build a legacy home within walking distance to downtown Boulder, CU, Flatirons Elementary and Chautauqua Park.  The City has preliminarily said that an 8,800 square foot home can be built.  Existing home is most likely a tear down but it may be able to be incorporated into a future plan. Demolition permit has been issued and there is no asbestos.  Super desirable neighborhood with similar large projects being built on adjacent lots.  Don’t miss out on this once in a lifetime opportunity. .8 acres 4 lots Premier west Boulder location Privacy Views Walk to downtown Boulder, CU and...
7475 Eggleston Drive – $1,100,000 – SOLD!

7475 Eggleston Drive – $1,100,000 – SOLD!

7475 Eggleston Drive, Boulder, CO 80303  $1,100,000 For all of the details and photos of this property go to www.7475Eggleston.com Escape the hustle and bustle of town and enjoy this rare 1.68 acre lot with panoramic views of The Flatirons & the back range. Create your own legacy on this super quiet & peaceful park like lot with over 60 trees. The value is in the land – the existing house may be a good starting point for your dream home but is currently not updated nor expanded. A sense of space – surrounded by estate homes on large lots and backing to a 40 acre working ranch. This property has huge potential. 1.68 Acres Zoned Estate Residential Well and Septic Located in unincorporated Boulder County but with a Boulder address House was built in 1961 Ranch style home with 1536 square feet on main and basement levels Main living area has vaulted ceilings Over 60 mature trees Located at the end of a lightly used dirt road with no outlet Super quiet and peaceful -away from road noise and airport noise...