My New Blog

2008 and 2009 were disastrous years for owners of homes priced more than $1,000,000.  During 2008 most were unaware of the receding demand and upon the market melt down that followed in 2009 if you owned a home valued at more than $1,000,000 and you needed to sell prospects were slim and none.  Little did it help that along with a crumbling economy, high unemployment, a crashing stock market, the rules and requirements for jumbo loans made them difficult and expensive to obtain. 

Jump to 2010.  As of today in Boulder County, 1/3 of the market for sale is priced above $1,000,000.  Out of these 368 homes for sale 22 have pending contracts.   That is 6% of the market under contract.   This is a pathetic demand curve in almost any market but when compared with last year at this time there were only 3% of the homes under contract.  

Roughly 12 million dollar plus homes per month are selling.  If no other new homes come on the market this means it will take 2 1/2 YEARS to absorb this inventory.   However, this is half the rate we saw in 2009 where it was at nearly 6 years of inventory. 

So, homes are moving slowly but much improved over last year.  I expect to see this trend continue and maybe by next summer we will see 10% of the market under contract.