Broomfield/Westminster Economic Snapshot - October '12

As is customary for this time of the year, the Broomfield/Westminster real estate market has begun to settle-in for the fall and winter. Active listings continue to decline with the September/2012 inventory of single family homes being down 1.13% (789 vs. 798) when compared to August/2012 for Broomfield/Westminster. If that trend continues, active single family home listings for Broomfield/Westminster at the close of 2012 will be approximately 762 (2011 ended with 817 active single family home listings). When comparing September/2012 to September/2011 active single family listings are down 23.62% (789 vs. 1033).

Through September/2012 single family home sales for Broomfield/Westminster are UP 13.83% when compared to through September/2011 (3045 vs. 2675); attached unit sales are UP 3.44% (511 vs. 494); the market is UP 12.21%.
Below is a brief overview of the activity level for single family homes in the Broomfield/Westminster real estate market through September/2012, courtesy of MetroList, the Metro Denver MLS.

The Absorption Rate is essentially the length of time it would take for the market to absorb itself, assuming no new inventory enters the market and the rate of sales activity remains the same. Absorption Rates improve as the year progresses. Inventory levels rise and sales activity increases.

The Absorption Rate at the end of September/2011for single family homes in Broomfield/Westminster was 105 days. Which means? Single family homes are selling much quicker these days than they did last year.

As the Presidential election heats-up and the holidays surface look for the Broomfield/Westminster housing market to take a back seat. There will continue to be buyers contracting and closing on homes, and sellers wanting to sell, but the bulk of the sales activity is now in the rear view mirror.

Mortgage interest rates remain at historic lows and banks/mortgage companies are willing to lend to qualified buyers. Home values have stabilized in most price ranges across the Front Range area, with entry level homes showing the most improvement. This being driven, to some degree, by production builders once again being a viable part of the overall housing market. Bank foreclosures and short sales are getting less media coverage these days, but they are still an important aspect of the market.