Residential Real Estate
Part of a series of presentations at the Boulder Valley Real Estate Conference held at the University of Colorado Tuesday, November 15th, Realtor D.B. Wilson began the morning with an insight into the residential market predicting that both inventory and the time a home is on the market will both increase modestly in 2017.
Fueled by both historically low interest rates and low unemployment, inventory is at its “lowest in 16 years,” Wilson said. As a result, Colorado ranks number 3 in the country for home price appreciation, almost double the national average of 5.6 percent.
Despite double digit home value appreciation on 2016, Wilson stated that lack of inventory negatively impacted sales in 2016 and that this trend should ease somewhat in 2017.
Due to a combination of demand from new incoming residents and the current construction defects law, new construction will likely be focused on town-homes and condominiums, Wilson reported. There is however no low-end price relief in sight, as many of these new projects are higher spec leaving still greater demand for affordable housing throughout the Boulder Valley, a topic addressed later during the conference.
In his predictions for 2017, Wilson anticipates area home price appreciation between 9-11 percent (including Broomfield) which will remain some the highest growth in the country.
Commercial Real Estate
Reporting on commercial real estate trends, Angela Topel with Gibbons-White Inc., remarked on the number of cranes visible throughout the Boulder Valley, indicative of the current growth trend. She did however warn that there might be a market correction in 2017/18 due to the unprecedented growth seen thus far although she did not elucidate.
Offering some predictions for the next quarter, Topel said there will be about 1.3 million square feet of leasable office, retail and industrial space in Boulder, including space currently under construction.
Comparing office vacancy rates around the Boulder Valley, we are just under 10 percent in Broomfield, compared to 9 percent in Longmont, and roughly 6 percent in Louisville and Lafayette. Interestingly, Boulder is reported to be at about 7 percent citywide however, the vacancy rate is closer to between 11-13 percent when sublease space is taken into consideration.
To learn more about Broomfield’s exciting new economic development program, the Access Broomfield Economic Coalition, click here.