Boulder Real Estate: A Tale of Two Markets
by Osman Parvez Based on preliminary estimates, Boulder real estate in the 4th quarter of 2005 was a tale of two markets. As the chart below indicates, there was a split between the high and low end of the market. 4Q sales to current inventory was fairly high below $700K, with the highest ratio between $600 and 700K. Meanwhile between $700K and 1.2MM, the ratio was noticeably lower. What is sales to current inventory? Take the number of homes sold and divide by the current number of homes in inventory. This gives you a rough approximation of the relative performance [...]
Boulder 4Q Sales (preliminary)
by Osman Parvez It's still early to tell, but it looks like Boulder's market may have painted a mixed picture for the 4th quarter of 2005. Current results indicate the number of homes sold dropped a little more than 6% compared to the same period a year earlier while Condo/Townhome sales increased nearly 12% (see chart below). The number of homes sold in the 4th quarter was still 16.2% more than in 2002. Keep in mind these numbers are preliminary and are based on a small sample size (208 homes sold, 150 condo/townhomes). Statistics are dependent on brokers correctly entering [...]
FSBO Madison
by Osman Parvez Yesterday, the New York Times ran an article on an up and coming FSBO (For Sale By Owner) website that captured 20% of the listings in Madison, Wisconsin. The article quickly became the #1 emailed article from the paper, an indicator of its popularity and impact. A couple of points... Like the many businesses in the past decade, real estate is undergoing rapid change fueled by the widespread availability of information. The Internet puts tremendous power in the hands of the consumer (where it belongs). However, contrary to popular perception, educated buyers or sellers are great clients. [...]
Losing A Client: Three Lessons
by Osman Parvez A Tale From The Trenches The other day I lost a prospective client. He ended up buying a property using another agent and, at the time, I was pretty angry about it. The way I looked at it, I had put in a good deal of time towards helping him with his relocation. The situation went sour when I happened to miss his call one afternoon and he randomly called another agent. Sure enough, these things happen in real estate. You haven't been in real estate long if you haven't had an experience like this. There are [...]
Selling the Ugliest House in Boulder
by Osman Parvez You know you've got problems when the listing agent describes your property as an "ugly house" and counsels potential buyers to "be brave." I suppose there are many approaches to marketing, but this agent's tactics are a bit surprising! Only one block north of Mapleton, Bluff street is actually quite nice (I would live there). This particular lot is fairly small at ~4,200 SQFT which could limit future build-out. I'd also advise clients to check how close this property is to Folsom, which carries significant traffic during the day. The existing structure is only 1,300 SQFT and [...]
Another Hot Company Moving to Boulder
by Osman Parvez Looks like another young, successful company is making tracks to Boulder. Recognizing that in the world of business today, attracting and retaining talent is a competitive advantage, marketing firm Crispin Porter + Bogusky has announced intentions to open up shop locally. Of course, the logic behind having a Boulder office isn't a secret. With it's combination of fantastic weather, outdoor recreation, low cost of living, proximity to a major airport hub, low taxes, educational opportunities, and business friendly environment the Boulder area is increasingly being chosen by companies seeking the highest quality of life for their people. [...]
Crash!
by Osman Parvez Oh no, could it be a real estate CRASH? The New York Times headline today announced a second consecutive month of slowing sales. What's the scoop? Sales are falling off a cliff, right? We must be nosediving into economic oblivion. It certainly sounds that way from the attention grabbing headline. You might think sales have dropped 20% or more. Well, not exactly. November sales nationwide were off by 0.1% from the same period a year ago. How many homes is 0.1% of our national market? 10,000. In November 2004, NAR reports 6,980,000 homes were sold. In November [...]
Tips: Curb Appeal
by Osman Parvez As I searched through listings here in Boulder the other day, I happened upon a property for sale that could serve as fair warning to potential sellers out there (buyers too, I suppose). It's a little lesson about curb appeal. Introducing MLS#457831 It's a 3 bedroom, 1,600 SQFT, $600,000 "Cape-Cod" style bungalow located at 2975 Washington Street in Boulder. Described as "charming" and a "rare find" by the seller's agent, this little ranch has sat on the market for nearly 180 days awaiting a buyer. The listing agent notes that it could be a "perfect remodel." Hmm... [...]
Caution: Coffee is HOT
by Osman Parvez Some readers may notice that over the past few weeks I've added a bit of legalese to this blog. Recognizing the unfortunate prevalence of litigation in our society, much frivolous and abusive in my opinion, means we need to take precautions. At the end of this page and at the end of every new post you'll notice a (painfully self-evident) legal disclaimer. It's akin to saying, "By the way, you are responsible for your own actions," something I thought everybody figured out by 3rd grade. Never-the-less, there it is. What drove the added caution, you might ask? [...]
Denver and Boulder Foreclosures
by Osman Parvez Denver and Boulder Foreclosures. There's a new piece from the Rocky Mountain News proclaiming an increase in foreclosures in 2005. The headlines scream, "Foreclosure Fatigue, '05 worst in 15 years!" It sounds like the housing market is collapsing, doesn't it? Well the sky isn't exactly falling here in the Denver/Boulder region. Read behind the attention getting headlines. What do you find? The number of foreclosures isn't adjusted for the base of homes. In other words, it doesn't take into account the greater number of homes (and homeowners) that exist today than in previous years. Buried in the [...]
Do You Think There’s a Bubble?
by Osman Parvez Do you think there's a bubble? According to a recent survey of 4,000 consumers, 66% of respondents believe there is. Of those, 58.7 percent believe the bubble will burst within a year and 41.3% think the bubble will still be alive and well a year from now. Few believe that real estate will suffer as badly as the stock market did when the bubble burst in 2001. The results of this survey aren't surprising given the endless media hype about the bubble. The opportunity within bubble mania is within its potential cooling affect across all real estate [...]
Transit Village Update!
by Osman Parvez Transit Village Update! The City of Boulder has released a staff memo outlining Planning Board discussion of the Transit Village Area Plan land use concepts and options assessment outline, used during their public hearing on Dec 15th. As you may know, planners have released two concepts for public comment. The memo includes a summary of public input from Open Houses conducted this fall. Both concepts "reflect a new grid system of local connecting roads, bikeways, and pedestrian routes. In the hub area, a series of connecting public squares or plazas to serve transit users, residents, employees, and [...]
Looking to Rent in Boulder?
by Osman Parvez Looking to rent in Boulder? Check out Housing Maps, a (free!) service which merges Google Maps with Craigslist for very effective rental housing searches. Of course, sometimes buying makes more sense than renting. We recently built a financial model to help our clients make a smarter decision. If you'd like our help, please contact us. If you are buying/selling, Housing Maps is somewhat less useful because only a small number of listings are posted on Craigslist (this is changing). However if you're renting, this tool can be great because Craigslist has been inundated with spammers as of [...]
CU Boulder : Buy or Rent? A Parents Survival Guide
by Osman Parvez CU Boulder: Buy or Rent? A Parents Survival Guide. So, your child is coming to CU Boulder and you aren't sure what to do about housing? Perhaps they're already here and after paying for on-campus housing or renting, you are re-thinking your options and wondering whether you should do the same next year. Does it make more financial sense to buy a condo or house? The infamous "pre-leasing" season for Boulder apartments is only a few months away and it's time to start doing your homework. Our main research article in the next Realty Unique Report is [...]
Realtor Conflicts and Buyer Agency
by Osman Parvez According to the Colorado Realtor Commission approved definitions of working relationships, a buyer's agent "works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity." Yet, brokers are constantly bombarded with enticements that may create conflict with their responsibility as a Buyer's Agent. Here's an example. Let's say I take up the realtor who emailed me today with an offer for $2500, a chair massage, gift certificates, and a free breakfast (click on image below). Later, when I bring my client to look at the property, [...]
