Fed Releases Rental Study, Surprises No One
by Osman Parvez Can the next generation afford to buy? Short answer: not so much. That's one of the not so surprising conclusions from a recent Fed study. Income has not kept pace with real estate appreciation while the cost of higher education has continued to rise. Meanwhile, the majority of people - including most renters - think buying is a smart idea. From the WSJ: Why More Renters Aren't Buying (Hint: Weak Incomes, Savings): Around three in five respondents think that buying a home in their ZIP Code is a good investment, compared with one [...]
Full Steam Ahead: 1707 Walnut Street
by Osman Parvez Framing is nearing completion at 1707 Walnut Street. This new 3 story building will feature 26 units and underground parking. The permit pulled on 12/16/13 was for $3.7MM. The developer has begun pre-leasing with move in dates beginning in 1Q15. These modern urban lofts will feature interior finishes that include hardwood flooring, hardwood cabinets, solid surface counter tops and stainless steel appliances. Parking and storage are available. Here's what rent looks like. Additional Resources: Boulder Development Map --- Like this analysis? Subscribe to my research. Ready to buy [...]
End of Summer Boulder Market Wrap Up [Analyze This]
by Osman Parvez Ready for another look at market conditions in Boulder? Straight to the charts... This chart shows total inventory for houses (blue) and condos and town Homes (orange). Total inventory (which includes pending, active/backup, and active listings) has been dropping from late June through Labor Day. There are now 25% fewer houses on the market. Condos and town homes have fallen 33%. If you're a regular blog reader, you know that this seasonal pattern is normal for Boulder. Inventory grows in January and peaks in June before reaching a bottom in December. What's [...]
Council Looking for Ways to Increase Hobos Downtown
by Osman Parvez This is a controversial topic. I'm probably going to offend some people. I'm still diving in... Last week, the Daily Camera published Message to Boulder Council: Fight homeless with more housing. Here's the lede: The solution to homelessness is housing. That was the message the Boulder City Council heard from a series of speakers... If that's the primary message Council is getting, no wonder they're tone deaf to the community's outrage. The comments section nails it. Here's the top rated one: Oh give me a break. My wife can't even walk [...]
Narrowing the Gap [Analyze This]
by Osman Parvez Boulder real estate is cheap. What's that you say? Huh? Oh sure, it's pricey when you compare it to places like Omaha and Kansas City. Try comparing it to places you'd actually want to live - communities with fantastic public schools, a healthy economy, amazing weather and outdoor rec opportunities, a highly educated population, a research university, and proximity to a major airport hub. It's a short list. It's no secret why Boulder keeps attracting new residents (here's why). Despite the relentless demand, we're not building significant amounts of new housing within city limits. [...]
Violet Park – What’s the Vision?
by Osman Parvez What does the future of this park look like? Wait - where is Violet Park, again? If you don't know, you're not alone. It's located on Violet Avenue, just east of Broadway. It's directly adjacent to Violet Crossing. Here's a map of the area. For now, Violet park is city owned open space. It's slated for a future park, however. For nearby residents, the park has the potential to add serious value. It's also directly adjacent to the North Boulder Sub Community and Nobo Arts District. The 2014 approved budget shows $500,000 going into the [...]
How Tight Can You Squeeze? [Development]
by Osman Parvez Earlier this week, Boulder City Council enacted a moratorium on building permits for multi-family housing on University Hill. Did you catch it? The (cough) emergency moratorium runs through March 18, 2015. Sound familiar? Long term blog readers may recall this was the very same tactic Council used in their opening salvo against view blocking large houses in Newlands. It eventually led to the Compatible Development Ordinance - rules limiting house sizes and certain architectural design elements such as so called "looming walls." In economic circles, this is called squeezing the balloon. CU plans to expand [...]
City Budget Swells to Supersize
by Osman Parvez So - just how big is the City of Boulder's budget? I don't know about you, but I find myself wondering every time I see our municipal fleet rolling around town. specialty vehicles for all! In case you don't have time to sift through hundreds of pages of budget-ese, I'll tell you. The total 2014 budget is $269.5 million, or about $2,700 for each and every Boulder resident. 84% is for operating purposes, the rest allocated to capital improvements. Here's something that should concern you. Boulder's budget has grown an average of 6.2% over the past [...]
Sorry Boulder Sellers, You Blew It.
by Osman Parvez Ahh... Autumn's in the air. If you're a boulder real estate seller, I've got bad news for you. The summer selling season is OVER. The following charts show the percentage change in Inventory from about two months ago. As you can see in the charts above, active listings - those you can actually buy - have dropped nearly 10% for houses and a whopping 25% for attached dwellings (condos, townhomes, etc). Listings that are pending (about to close) or under contract have fallen a massive 38% for houses and 30% for attached dwellings, respectively. note: [...]
It’s Time to Preserve Long’s Gardens [Speak Up!]
by Osman Parvez The Hawthorn Community Garden is located on Long's Farm Long’s Gardens is a third generation, family owned and operated iris farm in the middle of Boulder. This near 100 year old farm is situated on about 25 acres at 3480 Broadway, essentially the heart of Boulder. It's also home to Growing Gardens, a Boulder-based non-profit organization whose mission is to enrich the lives of our community through sustainable urban agriculture (Full disclosure: I serve on the Board for Growing Gardens) City Council has a public discussion scheduled for tomorrow at 6pm on preservation efforts at Long's Gardens. [...]
Tear the Roof Off the Sucker
by Osman Parvez Rubble, rubble everywhere. Boom! 1301 Walnut is no more. The old historic building is gone and construction is now underway for a new four-story office building in downtown Boulder. The future 63,000-square-foot commercial building will feature class A office space (upper levels), flexible space at the street level, and yet more offices below grade. It will also be LEED Gold certified. Here's what the future building will look like. Meh. The Planning Board somehow gave this project unanimous approval, but it looks soulless to me. We need more high quality office space in downtown [...]
Development Update – Gunbarrel Edition
by Osman Parvez --- Here are images of ongoing development in Boulder. The following projects are located in Gunbarrel. Pics were taken August 12, 2014. Apex 5510 nears completion Apex 5510 (details): Rent starts at about $1,100 for a studio. 100% rentals. Photo Album Boulder View Apartments (6653 Lookout Rd) nears completion Boulder View Apartments (details) Building A: 3 story multifamily building containing 20 units. To include 8 single car garages on main level totaling 1,873 square feet, 21,047 square feet for residential units on three levels, and 1,325 square feet in decks and porches Building B: 3 story [...]
Don’t Wait, Adjust Your Strategy NOW
by Osman Parvez Heads up. The summer real estate season in Boulder is coming to a close. If you're still in the market to buy or sell, it's time to adjust your strategy. Take a look at inventory trends during the month of July. The chart above shows attached dwelling inventory (i.e. town homes and condos) in the City of Boulder from the end of June through today, July 30. The blue line is available, the orange line is under contract, and the grey line is pending. Since the end of June, available attached dwellings have dropped 18% [...]
Bidding Wars and Overpaying – Brutal
by Osman Parvez I represented buyers in two intense bidding wars this past week, both of which went significantly over asking. In both cases, my buyers were disciplined. They were willing to let the houses go when it came to paying too much or giving away too much in contingencies. Ultimately, you've got to know when to walk away and have the confidence to do so. Understanding valuation is the key to having confidence in these sort of negotiations. It can be tricky with certain types of property - especially when comparables are thin to none. Won [...]
Eye Candy and Boulder Sales Volume – Analyze This
by Osman Parvez --- Ready for more analysis of Boulder real estate? Check out the following. You're looking at sales volume for the period January 1 to June 15 for the past several years. Houses are green, town homes and condos are orange (a nice peas and carrots effect, don't you think?) Real estate closings have slowed. Condos and town home sales have dropped about 4% but home sales have fallen far more. Sales volume is down nearly 21%. Don't trust one of my competitors telling you differently. They're selling you something (or clueless). [...]
