Boulder Condos Also in Short Supply [Analyze This]

by Osman Parvez

On Tuesday, I posted an update on market conditions for traditional homes in Boulder (link).    Now let's look at the market for town homes and condos (i.e. attached dwellings). 

Inventory


Just as with traditional single family homes, there's a shortage of condos and town homes in Boulder - and it's getting worse.   The spring market has even less inventory than last year.    As of this writing, only 187 properties are on the MLS - about 17% below last year.   111 of those units or 59% of inventory is available for purchase (not under contract).    

Sales Volume


Despite scarce inventory, at least 48 units sold last month, about 30% more than last year. 

Absorption


Absorption is simply sales volume as a percentage of the previous month's inventory, a measure of liquidity.  It reached 33% last month, more than 3x the long term average for February.

Economics 101

Low supply + high demand = higher future prices.   Are you standing by and watching it happen?    Maybe it's time to get off the sidelines...  

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Please Note

This document contains forward-looking statements. You are strongly cautioned that investment results are subject to business, economic and other uncertainties. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time. Always consult your financial advisor before making an investment decision.