Colorado State University EREC Report Indicates Northern Colorado Real Estate Market Declined During the First Half of 2011

Residential housing sales in Northern Colorado declined 11 percent in First Half 2011 compared to First Half 2010 according to the most recent Market Statistics report from the Everitt Real Estate Center (EREC) at the Colorado State University College of Business in cooperation with the Colorado Association of REALTORS® (CAR).

For the first half of this year ending June 30, 2011, there were 5,556 home closings recorded in Northern Colorado compared to 6,264 closings for the same period a year ago. The Northern Colorado region includes Boulder, Larimer and Weld counties as well as 11 major market areas within these three counties.

Attached closings – condominiums, townhomes and duplexes – fell 19 percent during the reporting period (down to 969 closings), while the number of detached closings dropped 10 percent (down to 4,587 closings).

Boulder County experienced the greatest decline in total closings, down 18 percent from First Half 2010 totals, followed by Larimer County with a 10 percent decline. Total closings in Weld County fell only 5 percent during this same period.

County Closing –  First Half 2010 Closing –  First Half 2011 –  % Change from 2011
Boulder                  2014                                  1660                       decrease 18%
Larimer                  2536                                   2271                      decrease 10%
Weld                      1714                                  1625                       decrease 5%

The total number of homes available for sale in northern Colorado fell 6 percent from 8,800 listings for the same period of 2010, to 8,264 listings in 2011. Regardless, little relief was demonstrated as the total supply of available homes in the region increased 11 percent from 8.4 to 9.3 months’ supply based on the average monthly sales absorption from the previous 12 months.

In Boulder County, a significant jump in the supply of homes was recorded in the second quarter of 2011, up 25 percent from 8.8 to an 11-month supply. In Larimer County, the increase was smaller (11 percent), but a 9.4-month supply of homes remained available. Weld County had the lowest total months’ supply of available homes, down 3 percent to a 7.4 month supply.

The Everitt Real Center publishes quarterly Market Statistics for the Northern Colorado Region using residential Multiple Listing Service data provided by Information Real Estate Services, LLC (IRES).

Housing studies provided by EREC in cooperation with the Colorado Association of REALTORS are authored by Sriram Villupuram, assistant professor of finance and real estate at CSU; John Gerhard, director of Residential Research for EREC; and Teresa Hoistad, EREC research associate.

About the Everitt Real Estate Center – REALTORS partnership

The Everitt Real Estate Center is based in the Finance and Real Estate Department in the College of Business at Colorado State University. EREC has partnered with the Colorado Association of REALTORS® (CAR) since 2009 to produce detailed housing studies for the state. The EREC-CAR partnership provides comprehensive information to ensure real estate professionals and decision-makers have access to reliable and timely analysis of the residential housing markets. EREC serves as a valuable bridge between the university and private business, and is also a catalyst within the university working with students and faculty from various disciplines.