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2/1/2009
What kind of market is the Boulder real estate market in February 2009? A buyer's market? A seller's market? Those questions are broad and the answers may vary depending upon variables such as the areas and subareas in Boulder and the price range in which one is buying or selling.
ALTOS Research, a real estate research company that gives subscribers real-time research statistics, attempts to quantify "buyer's market" and "seller's market" using a "Market Action Index" or "MAI." The MAI is a statistical function of the current rate of sales versus current inventory. An MAI value of 30 or greater typically shows a hot market for sellers while an MAI less than 30 typically indicates a buyer's market.
This week ALTOS shows a 90-day MAI of 17 for Boulder, Colorado. Thus, statistically speaking, Boulder is a buyer's market. However, home sales have been exceeding new inventory in Boulder for several weeks now and prices seem to have responded by moving upward. If the demand trends continue, Boulder housing prices may continue upward and the MAI will grativate toward that of a seller's market.
Regardless of what statistics tell us, low interest rates are spurring buyer's to act in and around Boulder. With real estate's prime selling season coinciding with historically low interest rates (and pending government incentives to buy homes), this spring may be a great time to be a seller in Boulder, Colorado!
Written by Scott Franklund
Founding Broker of the Boulder Fuller Sotheby's International Realty
This Blog is a Place for Colorado's Leading Luxury Home Experts to Share Ideas and Insight on Luxury, High-End Real Estate in Colorado & Beyond. To read previous and current postings to Scott Franklund’s Blog, The Legendary Report, please visit LegendaryReport.blogspot.com
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