$13+ Million Estate + Inventory Update [Fresh Listings, Get ‘Em Hot]
Have you finished shoveling from the latest snow storm? Good. Let's take a look at what's new and worth seeing on the Boulder real estate market. As usual, we've sifted through everything that hit the MLS and culled the refreshed listings, overpriced, and poor locations. The listings below are worth your time. Pocket listing alert: Realty Unique (my brokerage) has a new listing about to hit the market. If you're shopping in Arapahoe Ridge in Erie, take a look at this stunner. Beautiful kitchen, family friendly layout, huge yard that backs to open space and has beautiful mountain views. [...]
Boulder Market Update: Inventory Up, Sales Slow [Analyze This]
by Osman Parvez ---- If I were to base my analysis of market conditions on my brokerage's business, the Boulder real estate market is scorching hot. I have a healthy number of clients and many are now under contract and heading to closing. That's how most Realtors talk about the market. They base it on their personal business or what they hear from their colleagues at the water cooler. Don't believe the hype. Ignore the hand waving and happy talk from my competitors. The market is starting off cooler this year. Let's look at the analysis. Inventory for [...]
Getting Bubbly Yet?
by Osman Parvez ---- A couple of months ago, I posted an analysis of pricing and negotiations at Wimbledon. Read Osman, How Much Should I Offer? If you're not familiar with Wimbledon, it's a small complex of older townhomes located a few blocks from CU on the east side of Campus. The units are a little rundown at Wimbledon, but they have reasonable build quality and HOA fees. Most are occupied by students and owned by investors (often parents). In the past, these have made good investment properties. I like to use the model as a teaching tool with new investors [...]
Table Mesa Prices Jump 11.5% [Analysis This]
by Osman Parvez ---- A few weeks ago, I updated my annual analysis for Martin Acres. Now let's take a look at an adjacent neighborhood directly to the west: Table Mesa. Remember: negotiation expertise is a competitive advantage for both buyers and sellers. Smart real estate decisions are based on a deep understanding of local market conditions. There is no short-cut to deep analysis nor a replacement for skill. Sorry, there's no app for that. Table Mesa is a well located neighborhood with a selection of diverse properties. It has the best rated schools in Boulder. The retail [...]
Wonderland Lake and Newlands Homes Exceed $1MM Threshold [Analyze This]
by Osman Parvez ---- Last week, one of our blog readers asked how appreciation rates in Martin Acres compared to other Boulder neighborhoods. Great question. Take a look at the following chart. As it turns out, Martin Acres experienced far higher appreciation last year than many Boulder neighborhoods including Table Mesa, Wonderland Lake, and Newlands. The median sold price for a house in Martin Acres increased 17.4%. Wonderland Lake increased 15%, and Table Mesa 11.5%. Newlands, by comparison, gained a paltry 5.1%. Of course, the characteristics of these neighborhoods and the houses within them are quite different. North Boulder [...]
Boulder’s Martin Acres Jumps 22%
by Osman Parvez ---- Looking for an affordable house in Boulder? Wonder where prices are headed in 2016? You should be tracking what's happening in the Martin Acres neighborhood. As usual, this isn't the typical Realtor happy talk or hand waving. Let's look at the numbers. In particular, let's focus on the Martin Acres Index (MAI). 25 houses sold in Martin Acres during the past year. Sale prices ranged from $443,000 (150 S. Lashley) to $749,000 (315 S 42nd Street). The average sale price for basic 3 bedroom, 1 bath ranch homes that matched MAI criteria was $492,500. The [...]
The Case for Caution
by Osman Parvez ---- With Google’s new building well underway, there has been considerable buzz in the real estate community about the potential impact. As everyone knows, home prices have risen dramatically during the past several years, not just because of Google, but due to a large influx of people moving to the Front Range and a shortage of available homes. Sounds like a recipe for continued strong appreciation. Is there a reason for caution? You bet. In the Bay Area, venture capital fuels startups to compete for and compensate early stage employees who in turn, hand over a significant chunk [...]
Chautauqua Market Update [Analyze This]
by Osman Parvez ---- Thinking about buying or selling a house in Chautauqua? Smart real estate decisions are based on a detailed understanding of the market. Let's take a closer look... Chautauqua is a Boulder neighborhood bounded by Baseline, Broadway, and Open Space. Prices start at about $1MM with pricier homes dominating upper Chautauqua along Bellevue and Mesa Canyon Drive. Note: Unlike the dirty data you'll find elsewhere, the data I put together for the charts below has been carefully aggregated and scrubbed. This chart shows sales volume for houses for the past six years. There are no condos [...]
When Will Boulder Homes Exceed $1MM? [Analyze This]
by Osman Parvez ---- By now, you've seen the article in the Denver Post about $1MM home prices in Boulder. It created quite a buzz. You might have also seen the response in the Daily Camera, with some of my colleagues refuting the claim. Neither article does a good job of exploring historical home price growth in Boulder nor forecasting prices into the future. Let's dig into it. The chart above chart shows median sold prices for arms-length house transactions between June 1 and August 31 (i.e. "summer") within the city proper. Affordable housing, town homes, and condos are [...]
Get Ready to Cut Your Tenants a Check [Analyze This]
by Osman Parvez ---- Rates remain far from normal. In case you forgot, here's a little visual reminder. The chart above shows the 1 mo average CD rate (blue) compared to the required rate for tenant security deposits in the City of Boulder (red). Someday we'll return to normal, maybe. Don't expect it anytime soon, however. Though the required rate is only 0.16%, landlords must track and make this payment to their tenants. For a fairly typical $2400 per month lease in Boulder, you're required to send your tenants a check for $3.84. References Tenant [...]
Last Week’s New Inventory [Fresh Listings, Get ‘Em Hot]
Multiple offers came in and out of the office this weekend, plus our usual round of client showings, so this post didn't quite make it out the door. Our goal is to publish our review of what's worth seeing every Friday, but clients always come first. Here's a look at LAST week's fresh listings. To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896. Boulder 465 S 42nd Street | $535,000 | More Details Martin acres ranch with 7 bedrooms. Yes, 7 bedrooms. If you've always wanted to [...]
Osman, How Much Should I Offer? [Investment Analysis]
by Osman Parvez ---- We took one of our buyers to see an investment property at the Wimbledon in Boulder last week. At the end of the showing, they wanted to buy it. They asked "Osman, how much should we offer?" How much to offer and how much to list are the most common questions we get from our clients. To give you a sense of the type of work we do to answer the question, let me walk you through the analysis. This is far beyond the service you'll receive from a typical Realtor. We believe that [...]
American House Prices: Reality Check [Analyze This]
by Osman Parvez ---- Today's interactive Daily Chart from the Economist is excellent. American House Prices: Reality Check. It shows house prices going back to 1980 across five metrics; HPI, Prices in Real Terms, Price to Rent, Price to Income, and Percent Change. You can switch on/off markets and use the sliders to adjust the dates. Here's what Denver (grey) looks like for prices in real terms since 2000 compared to Phoenix (green) and Seattle (red). Think we've got room for the market to keep moving up? I sure do. It seems we're a long way from the peak. [...]
Louisville or Boulder? [Analyze This]
by Osman Parvez ---- Boulder buyers often consider Louisville as a more affordable alternative. Over the years the spread between these markets has widened. This isn't just happy talk and hand waving. Let's look at the data. Enter the wayback machine. A few years ago, we helped a Doctor decide between purchasing in Boulder or Louisville by analyzing all the sold homes with 4 bedrooms and 2 bathrooms and running a regression. This is what it looked like. The chart above confirms what you probably already suspect. Boulder is a more expensive market but historically, it's also appreciated faster. [...]
To HOA or Not to HOA
by Osman Parvez ---- Last week, we put together a detailed opinion of value for a client looking to sell in the spring of 2016. Included in the set of recent, relevant sales were a mix of stand-alone properties without any HOA and several town-home style properties with substantial HOA costs. It's unusual to mix together HOA properties and those without an HOA, but in this case it was appropriate. Other than having a shared wall, the comparable properties were functionally similar - very close in age, size, location, finish quality, and layout. How do you compare? $100 HOA [...]
