The Skinny on Real Estate

A blog about Broomfield real estate

The latest housing statistics have been released from Metrolist and this is what happened in Broomfield in 2007:

The average “sold” price on single family homes in Broomfield was $339,139.
827 houses were sold in 2007.
The average house spent 113 days on the market before it sold.

Now here’s where it gets interesting:

In 2006, the average “sold” price on a single family home in Broomfield was $325,097.
822 homes sold.
The average house spent 96 days on the market before it sold.

In other words, Broomfield has weathered the year in real estate quite nicely. Housing values didn’t skyrocket but they certainly didn’t decrease as they did in some areas either. And it by no means constitutes any sort of crisis! In 2007, the average Broomfield home sales price increased and the number of homes sold increased.

Advice for 2008:

For buyers: If you’re thinking about buying a home in Broomfield you can see that altogether values are holding up well here and it’s a great city in which to buy a home. There are several new home communities in Broomfield and a variety of previously-owned homes from which you can choose. The power is still with the buyers in the sense that you don’t have to “settle” anymore. If you want a house that’s in great shape and is priced right it’s just a matter of finding it because they’re definitely out there.

A real estate “expert” recently opined on TV that this is the year of the down payment. He went on to caution that the days of zero down payment homes were gone. My answer to that is “not really.” You can get an FHA loan for 3% down (or even less depending on what kind of deal you may be able to broker with your buyers) and with VERY favorable terms. Does it help to have a good-sized down payment? Definitely. Is it required? No.

For sellers: I know I’ve said this about 6 billion times but I’m going to keep saying it. PRETTY, PRISTINE AND PRICED RIGHT - PRICED RIGHT - PRICED RIGHT. If your home just isn’t worth what you would like/need to get out of it, sit on it for another 6 or 12 months. Otherwise your home could languish on the market and when values do increase, yours has already been on the market forever and it looks really bad to buyers.

For neither: Happy where you are right now? Figure it will be at least a few years before you move? Keep your home well-maintained and for pete’s sake don’t get into some crazy-ass ARM loan for stupid reasons. No, you do NOT need a $40,000 sports car (try living in that if you lose your home!) and no you do NOT need a finished basement with a bar and home theater. Obviously if you can easily afford these things then go for it and enjoy them! But do not take out the equity you have in your home to get these things!! I’ve lost count of the number of calls I’ve received from home owners who did these kinds of things, and now they’re losing their homes and watching their credit get destroyed. Meanwhile, the bankruptcy attorney gets rich.

Do I sound crabby? I feel bad for all the folks I’ve talked to who are in big trouble with their loans. It does affect me when people call me on a Sunday morning, and can hardly talk because they’re crying so hard about the situation they’re in. Then when I find out how much they owe on their mortgage and what homes are selling for in their neighborhood, it makes me cringe. YOU can do what these folks didn’t do and make a decision not to set yourself up to fail. That way a few years from now, when you’re thinking you would like a bigger or nicer home or hope to retire to sunny Florida, or whatever, you can afford to do so!! And you’ll be VERY happy you have the money and the power to make choices.