Broomfield Update

by Osman Parvez

I've been spending a little more time in Broomfield the last few weeks as I help a client find a home. Seems like a good time to do an update on local market conditions.

The following market analysis covers home sales in Broomfield, Colorado through August, 2006. As you'll see in the graphs below, more people have listed their homes for sale this year but demand (as measured by sales volume) is essentially unchanged. Meanwhile days to offer is running lower.

Home Sales Volume in Broomfield

35 homes sold in Broomfield in August, equal to August last year and down 22.2% from July. Year to date (January through August), there were 253 sales in Broomfield this year. There were 254 and 227 sales in Broomfield for the same period in '05 and '04, respectively.

Home Inventory in Broomfield

There were 256 homes on the market in Broomfield in August. That's an increase of 29.9% from August of last year and up 3.2% from July.

Days to Contract in Broomfield

It took an average of 64 days for homes sold in August to go under contract. That's down from 79 days in July and 74 days in August of last year.

In summary, inventory is up substantially in Broomfield but for the last few months, days to offer has been flying below last year (except July). As with other markets showing lower days to offer but higher inventory, this suggests that hesitant or marginal buyers are out of the market. Meanwhile sales volume is essentially unchanged from 2005 and running ahead of 2004 (~11% more sales).

As with Erie, the factor to watch in Broomfield is new construction. We visited Pulte's massive Anthem development a few weeks ago where the full build out is expected to be 3,100 homes. This is for a market that normally sees average sales volume of only ~30 homes a month. This project, among others in Broomfield, will undoubtedly put downward price pressure on comparable homes in surrounding areas.

We'll post a more detailed report on the Anthem mega project shortly. Comments are welcome. Feel free to call me with any questions at ph: 303.746.6896.

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

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.