For Boulder Valley and surrounding areas

By Gary Collins

Markets at a Glance

The Boulder County real estate market is healthy; home prices are up; mortgage interest rates are falling; and economic indicators suggest a pent-up housing demand.

Real estate markets are cyclical and local. What's happening in another part of the state or country is not necessarily true for Boulder County. A useful analogy is that a national real estate forecast is like a national weather forecast. A local paper recently ran a story about a surgeon and his wife who were looking at condos in Chicago. They decided to wait for the "bottom" because they believed prices were heading downward. Another article describes falling prices and high foreclosure rates in the Denver metro market. These stories reflect local conditions, but not our local conditions.

During the past five years, we've seen wild appreciation in places like Florida, California, Arizona and Nevada. Corrections followed. In this same time period, median prices for single-family homes rose modestly in Boulder County. Between 2002 and 2007, the median sales price in the City of Boulder increased from $405,000 to $550,500 - 7.2% in terms of average, annual appreciation. In Longmont, the corresponding numbers are $224,000 in 2002 and $240,000 in 2007 - an annual appreciation rate of 1.3%. In Boulder County as a whole, median sales prices grew at 4.1% per year from $309,000 to $372,000. Of the 203 sales at or above $1 million, 107 occurred in the City of Boulder. Thirty-one sales were priced above $2,000,000, and 16 of those were within the city limits. Not bad for a supposed soft market.

Here's the takeaway. If you purchase a home for $500,000 with 20% down and appreciation is 5%, the value of the home one year later is $525,000. This is a 25% rate of return on your down payment. If you want to know what's really going on in our local market, give me a call at (303) 541-1950.

Source: Information Real Estate Service (IRES)

Did You Know?

• Developers in Broomfield are breaking ground on 1.25 million square feet in Interlocken for 1,000 homes.
• Superior is reviewing a proposal for 2,200 homes and 1 million square feet of non-residential development on a 126 acre parcel on McCaslin across from the current Town Hall.
• A Loveland developer purchased 914 acres in north Broomfield at Colo. 7 and I-25 and plans a mixed use development.

Real Estate by the Numbers

• $1,791,500 - the sales price of the former RTD bus stop site at Foothills and Pearl Parkway - purchased by Pearl Parkway Centre LLC.
• 915 acres - land at Anthem Colorado purchased by McWhinney Enterprises from Pulte Homes. This parcel is surplus acreage that Pulte planned to sell from the start. The transaction does not affect the completion of current Pulte projects.
• $9 million - the price paid by Boulder County and Clinica Campesina for the former Kaiser Permanente medical building at 2525 13th Street.
• $9,993,800 - the price of the 3.55 acre parcel at Twenty Ninth Street mall that is slated for residential development by LJD Enterprises and Forum Real Estate Group.
• $6.3 million - the sales price of the 93,743 square foot Nautilus building in the Colorado Technology Center - purchased by a private investment group.

Tax Tips

Provided by Premier Mortgage Group

April 15 is rapidly approaching. I'd like to share some tax information that may be helpful to you. Interest on up to $1 million (may include up to two residences) is deductible for everyone. This is reported on Form 1098 and on your HUD settlement statement (if you've refinanced or purchased a home during the last year). Interest on a cash-out transaction may be deductible up to $100,000. Individuals who are not limited by the alternative minimum tax should consult their tax advisor, as there are some exemptions. For instance, if you have used the money for capital improvements to your home, this may be deductible even if you are limited by the alternative minimum tax guidelines.

Origination fees and/or discount points paid on your purchase transaction are fully deductible, regardless of whether they were paid by you or another party on your behalf. Origination fees and discount points paid on a refinance transaction are amortized over the term of the loan.

As you shuffle through last year's receipts, create a "home file" to keep all home improvement receipts together, as these will help increase the cost basis of your home as well as document potential interest deductions.

The IRS has not changed the capital gains exemption of $250,000 for a single person or $500,000 for a married couple on the sale of a primary residence, as long as it has been claimed as such for a minimum of two of the last five calendar years.

For more information on mortgage-related tax matters or for general financing information, please call me or talk to a Premier Mortgage Group mortgage consultant at 303-449-8855. www.pmglending.com

Summit County Update

Some of our clients ask about other markets in Colorado. I'll periodically give you information gathered from local experts.

If you're looking for an affordable place to buy near a ski resort, consider Summit County. According to the Rocky Mountain Resort Alliances 2007 report, the average sales price of condos and single-family residences in Summit County is $530,296, which compares favorably to regional resorts such as Jackson Hole, Whistler, Aspen and Telluride. Vail's average price, for example, is $1,169,755.

According to Lisa Bova of Breckenridge Associates, developments in the Breckenridge area are flourishing as the community approaches build out. Projects by Vail Resorts, including Crystal Peak Lodge and One Ski Hill Place (a Rock Resort) are selling out as phases are launched. Located at the base of Peaks 7 and 8, these units average $1000/sq. ft. Grand Lodge, which is being developed by a local group, provides a vacation ownership option with ski-in, ski-out access. Frisco and Keystone offer more affordable choices compared to Breckenridge.

Summit County had a few firsts in 2007. Prior to March 2007, no sale in the County had exceeded $4 million. Before the end of the year, eight single-family residences sold at prices in excess of $3 million each. Seven of these homes are in or near Breckenridge. One home sold for $5.5 million. The total 2007 dollar volume of sales in Summit County is similar to 2006 although the number of transactions in 2007 dipped slightly.

If you want more information about Summit County or another mountain market, please ask me for a referral to a Realtor with whom I've worked.

Thank You!

Thank you for your business and referrals. Please call me if you have questions on the newsletter articles or to suggest future topics. If you have friends or family members who would like to receive my newsletter, please provide me with names and addresses by phone at (303) 541-1950 or .

Gary Collins, Realtor, selling Boulder's Finest Residential and Commercial Properties. An award winning Top Producing Realtor and Broker/Manager, Gary has been a Real Estate Professional since 1971. He joined Wright-Kingdom as a partner in 2000.