Home selling prices in the four county Bizwest region (Boulder, Broomfield, Larimer and Weld) continue in uncharted territory with double digit increases in both home sales and median selling price. The rate of increase actually slowed a bit in April with a 12.3% increase in median price but the number actually hit $300,000 for the first time boosting the year to date median price to $294,000.
By areas, the price increase parade is headed by Larimer County which shows a 21.1% increase in the median price for the year to date. This would certainly seem to be an unsustainable rate of increase, particularly when compared to a 7.5% increase for all of 2014. All of the price increases are due to a rising demand for homes and a limited supply of homes for sale. The net active inventory improved slightly to 2,540 homes but this compares to 4,000 homes a year ago and a figure of 10,000 required for a balanced market. With a 2.5 month supply obviously sellers are in command and there is a lot of competition among buyers leading to multiple offers and escalation clauses, particularly in the lower price range.
