In order to get a true picture of the current state of the real estate market, you must break it down into smaller segments. Looking closely at different price ranges gives a much more comprehensive and interesting view.
Under Contract %<$400,000 33% $400,001 – $600,000 27% $600,001 – $1,000,000 19% >$1,000,000 11%
U/C % shows the current level of activity in the market. Simply put, it’s the percentage of active homes on the market at any given time which have found a buyer. Clearly, the lower the price the more market activity there is.
Current Inventory in Months: (Using the past 12 months sales rate)<$400,000 5.6 months $400,001 – $600,000 6.9 months $600,001 – $1,000,000 11.4 months >$1,000,000 21.7 months
Inventory is a gauge of how long it would take to sell all homes in a given range if the past sales rate were to continue in the future and no new homes were to come on the market. Homes below $400,000 are in a healthy range, and those above $1 million are oversupplied given the current sales rate.
Sales through June 30, 20122011 2012 Change <$400,000 1289 1,517 18% $400,001 – $600,000 355 355 34% $600,001 – $1,000,000 192 279 45% >$1,000,000 68 93 37%
Sales were up across the board, but there is a direct correlation between the magnitude of change and the price range. It is interesting to see that a majority of the sales in Boulder County are below $400,000.
While the majority of sales in Boulder County take place below $400,000, the most improvement in the market was seen above $400,000. During the past few years the upper end of the market has really struggled. This year we are seeing some good improvement!