Northern Colorado real estate market declined during the first half of 2011

Residential housing sales in Northern Colorado declined 11 percent in the first half of 2011 compared to the same period in 2010, according to the most recent Market Statistics report from the Everitt Real Estate Center at the Colorado State University College of Business in cooperation with the Colorado Association of Realtors.

For the first half of this year ending June 30, 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 – First Half 2011 – % Change
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 six percent from 8,800 listings for the same period of 2010, to 8,264 listings in 2011. 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 three percent to a 7.4-month supply.

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.