By Dr Denver H. Bubble
Due to a small flood of $2 million-plus homes sold in Boulder the average price of a single-family house has increased up to $1.2 million. This figure represents a massive 21% year-over-year increase for the first quarter of 2018. Median home price, which is often the preferred method of measuring an area's cost, is $900,000 up only 3.8% year-over-year.
The main driver of this 21% increase was the high-end luxury market of $2 million-plus homes. In the first quarter of 2017, there were only 5 sales in this market. In the first quarter of 2018, this increased to 18 sales. The 18 sales were also a trend breaker as $2 million-plus home sales have not exceeded single digits in the previous five years.
Boulder, like metro Denver, is suffering from an acute shortage of homes for sale inventory. Also, an influx of foreign buyers, as well as Californians, are pushing up home prices. Jay Hebb, of PorchLight Real Estate Group, said, "Boulder is actually quite affordable compared to many places in the country and world where a lot of these buyers are moving from." As much as we complain about housing prices being unsustainably high, we have Boulder to look to help us rest well.