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Boulder, CO: Real Estate Market & Trends 2016

The Boulder real estate market experienced significant highs in 2016 — specifically the first-half. Home prices and appreciation rates flourished, growing relative to the previous year and well beyond the national average. Gains in the last three years have extended the trend of positive price growth since the recession, revealing a housing market ripe with investment. Total home equity gains for Boulder real estate during the first-half were among the highest in the country, with homeowners and investors reaping the rewards.

Looking back, a combination of factors helped to support the Boulder real estate market in the first six months of 2016. A stronger economy than other markets, coupled with an onslaught of new housing construction helped to propel home prices in 2016. Thriving home prices also resulted in weaker home affordability, compared to other markets. However, the Boulder real estate market proved to be one of the hottest housing markets throughout the year.

Boulder, CO Real Estate Market Statistics:

Boulder real estate

Home appreciation and total equity remained the highlight of 2016, especially during the first-half. One-year and third-year rates for Boulder real estate reached an astounding 18.5 percent and 27.5 percent during the second quarter, compared to the national average of 4.9 percent and 17.8 percent. In terms of home equity gains, Boulder real estate couldn’t be beat, with gains in the last nine years greatly surpassing the rest of the country. For example, homes purchased one year ago appreciated by $93,555 followed by three-year appreciation of $141,085 and $208,463 in the last five years. For those considering Boulder real estate investments, the following spotlights appreciation gains in previous years:

  • Homes purchased in the Boulder, CO housing market one year ago have appreciated, on average, by $93,555. The national average was $14,963 over the same period.
  • Homes purchased in the Boulder, CO housing market three years ago have appreciated, on average, by $141,085. The national average was $46,878 over the same period.
  • Homes purchased in the Boulder, CO housing market five years ago have appreciated, on average, by $208,463. The national average was $82,353 over the same period.
  • Homes purchased in the Boulder, CO housing market seven years ago have appreciated, on average, by $246,763. The national average was $77,054 over the same period.
  • Homes purchased in the Boulder, CO housing market nine years ago have appreciated, on average, by $213,665. The national average was $31,126 over the same period.

Price appreciation and principle payments in the last three years have boosted total equity growth since the recession. Although investment activity in Colorado has been heating up for sometime, last year proved to be a major payoff for investors and homeowners alike. The trend is expected to continue, which means Boulder real estate investing should remain competitive in coming years. Here’s why: Home purchased a year ago in Boulder have appreciated by $93,555, whereas the national average experienced appreciation of $14,963. That said, a rise in Boulder real estate investors is predicted to take place.

Foreclosures are another market factor for investors to pay attention to. According to RealtyTrac, the Boulder real estate market saw some 64 properties in some stage of foreclosure during the month of November. In comparison, this is 50 percent lower than the previous month and 67 percent lower than the same time last year. Additionally, the number of properties at auction fell 50 percent from the previous month. From an investor’s standpoint, the low rate of foreclosures is sure-fire sign the Boulder real estate market is primetime.

Boulder, CO Real Estate Market Summary:

Boulder housing market

  • Current Median Home Price: $549,600
  • 1-Year Appreciation Rate: 18.5%
  • 3-Year Appreciation Rate: 27.5%
  • Unemployment Rate: 3.4%
  • 1-Year Job Growth Rate: 3.7%
  • Population: 103,166
  • Median Household Income: $57,112

Boulder, CO Real Estate Market (2016) — Q2 Updates:

Boulder real estate investors

The Boulder real estate market was a well-oiled machine in the second quarter of 2016. Home prices for Boulder real estate blossomed during the first six months, with median home prices reaching $549,600, compared to the national average of $239,167. Moreover, appreciation rates remained on an upward trajectory, as one-year and three-year rates climbed to 18.5 percent and 27.5 percent respectively. In fact, the Boulder real estate market was one of the 20 hottest housing markets during the spring selling season. Homes in Boulder sold within 40 days, among the highest in the country.

The Boulder real estate was driven by a collection of factors in the second quarter, but none more so than the local economy. Low unemployment rates, which remained well below the national average, combined with growth in jobs helped to boost the Boulder real estate market in the first-half of 2016. One-year job growth in Boulder reached 3.7 percent during the second quarter, higher than the 1.9 percent achieved by the rest of the country.  Furthermore, employment has held up and is on an upward trend.

New housing construction is another element helping to fast-track the Boulder real estate market. The rate of construction during the second quarter was 157.1 percent above the long-term average, with single-family housing permits skyrocketing to 67.1 percent, whereas the national average only saw a 10.6 percent rate. Construction in Boulder is on the rise relative to last year, which suggest the local inventory has stabilized. With an influx in new housing, home affordability is predicted to receive some relief in coming years. Homeowners paid 18.8 percent to mortgage payments during the second quarter, compared to the 15.8 percent the national average paid. Although home affordability for the Boulder housing market is weaker than most, it should see improvements in the future.

Looking forward, the Boulder real estate market is anticipate to see greater price growth than in the U.S. in the next 12 months. According to the National Association of Realtors (NAR), Boulder real estate is forecasted to grow by 6.1 percent, compared to the national average of 3.6 percent. With increases to home prices expected to continue, the Boulder real estate market is emerging as a dominant force; one that investors need to consider.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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