Broomfield/Westminster Economic Snapshot - January '13

In taking literary license with Charles Dickens’ opening line in A Tale of Two Cities, the 2012 Broomfield/Westminster real estate market wasn’t the best of times or the worst of times, but it did experience a marked improvement over the past several years. 

Single family home sales were UP 14.10% in 2012 when compared to 2011 (4,029 vs. 3,531). Attached unit sales were down 1.04% for the same time periods (669 vs. 676). The collective market was UP 11.67% (4,698 vs. 4,207). 

The Absorption Rate (the length of time it would take for the market to fully turn) for single family homes ended the year at 61 days for Broomfield/Westminster. 2011 ended the year at 84 days. This was spurred my low mortgage interest rates and diminishing inventory. 

For Broomfield/Westminster, the year ended with 678 single family home active listings. This was down 17.02% when compared to the end of 2011 (678 vs. 817). 

Below is an overview of sales activity for the past two years for single family homes and attached units in Broomfield/Westminster, courtesy of MetroList – the Denver Metro/Suburban Mountain MLS. 

2013 promises to be a year of continued change. Here are some thoughts relative to what the Broomfield/Westminster market may experience.

• Lack of available inventory will further foster a seller’s market, with both the resale market and new construction benefitting. 
• Land sales, once a dormant part of the real estate landscape, will experience a rebirth as production and custom builders seek out new opportunities. 
• Home mortgage interest rates should continue to hover below 4.0% for the traditional thirty-year fixed rate mortgage as the economic impacts of the decisions surrounding the fiscal cliff become more apparent. 
• Rental rates will continue to increase as the availability of rental units shrinks.