On New Year’s Day, 2009, the historic Boulder landmark, The Boulderado Hotel, will celebrate its one hundredth birthday.  Anyone who has visited or lived in Boulder knows the place well, as it’s been the center of things since Boulder’s birth. It’s situated in downtown Boulder, where the Pearl Street Mall and other attractions have grown up around it. (See a map of Pearl Street.)

All Around the Boulderado: Boulder Neighborhoods

Some of Boulder’s top real estate listings are located around the Boulderado grounds. Proximity to stores, boutiques, restaurants, parks and other amenities is what makes the Boulder downtown area so desirable, in addition to home size and style, mountain views and overall ambiance.  Longtime residents and home shoppers alike attest to that special something that central Boulder has. Here’s a list of some of its historic and newer neighborhoods:

Boulder’s Mapleton Hill Neighborhood–Mapleton Park and Mapleton Hill are two sub-neighborhoods in the Mapleton area that boast gorgeous, large historic homes close to the mountains. Residents here can easily “take a hike,” either to the Pearl Street Mall and downtown, or into the nature trails just up Mapleton, where there’s lots of open space and foothill hiking trails.

Boulder’s Sunset Hill Neighborhood–One of Boulder’s first much-hyped neighborhoods, Sunset Hill is, as advertised, up above the city and features spectacular views both of town and the flatirons.

Boulder OT East West North Neighborhood–Old Victorian homes between the Boulder High area and Boulder Community Hospital.

Midtown Pearl Street (Blackstone Lofts)–New-new lofty living in mixed-use buildings in the up and coming east Pearl area.

Boulder East (Luxury townhomes)–The east end of Pearl is growing and thriving, and along with that activity, people are finding themselves living and working there. Thus the large and luxe accomodations of the Boulder East condos.  These units are scheduled for completion in 2009.

Photo courtesy of Flickr Creative Commons–by teofilo

Well, it’s been over a month since that fateful day on September 15. The day that Lehman went bankrupt and the Credit Crisis truly went mainstream.

Since then, the DOW has dropped more than 20% and the Great Depression is a daily topic of conversation.

Within that contextual background, my gut told me that the real estate market most severely impacted would be the high end market. In Boulder, “high end” means homes $1 million and over.

My hunch- the market for Boulder luxury homes slowed dramatically in the 30 days from Sept 15 to Oct 15.

Why? The Credit Crisis and the resulting collapse on Wall Street in the stock, bond, and credit markets had a much larger impact, both financially as well as psychologically, on potential home buyers in the luxury market. High net worth folks are typically more in tune with what’s happening on Wall Street and have a lot of their assets invested in the financial markets, so when a 156 year old firm like Lehman goes under, it means something.

These same buyers also often have the luxury of simply sitting on the sidelines until the dust settles and order is restored in the financial markets. They don’t have to buy or sell a home or move, so they hold off, thereby brining the high end market to a screeching halt.

That was my hunch. But what does the data say?

Market data for the high-end Boulder market reveals a mixed message. It’s a story of The Good, The Bad, and The Ugly. First…

The Good:

Contrary to my suspicion that the high-end market came to a standstill on Sept 15, the number of homes priced above $1 million in Boulder proper that went under contract from 9/15/08 to 10/15/08 was 10, twice as many as the 5 homes that went under contract in the same period a year ago.

Wow, the high end market is on fire! Credit Crisis……Schmedit Crisis….luxury buyers remain above the fray and my hunch of a slow down is all wrong! Well, not so fast…

The Bad:

The number of million plus homes that actually closed and sold from 9/15/08 to 10/15/08 in Boulder proper was 3. That’s right….3 closes in a 30 day period. Ouch! Last year, 12 million plus homes closed in the same period. From 12 to 3, that’s a 75% reduction in transactional volume year over year.

The Ugly:

A key statistic in determining the state of a given market is the Absorption Rate. It’s a fancy term that describes how long it will take at current sales volumes to absorb all of the homes currently on the market. The actual figure is determined by dividing the number of active listings by the number of closed sales in the last month.

This is where things get ugly in the Boulder high end market. As of 10/15/08, there were 140 active single family homes listed in Boulder proper for more than $1 million. At 3 closes in the previous month, that comes out to staggeringly high 46.7 months of inventory on the market. In other words, it will take nearly 4 years to absorb today’s inventory of high priced homes.

In short, based on my own feel for the market and the actual data since Sept 15, I believe that the market for higher priced homes in Boulder and all of the other luxury markets across the Front Range are going to slow considerably through the Fall.

I would not be surprised by a 50-75% reduction in sales in Q4 of this year compared to last year for homes above $1 million. I will keep you posted with updates as new market data comes available.

If you’re a first-time homebuyer, or are just curious, you’re in the right place.  More than 3/4 of the public now uses the Internet to help them find or sell their home, which means that technology is taking some of the burden out of searching for Colorado real estate.

Introducing COhomefinder
Not only was COhomefinder one of Colorado’s first and favorite companies to marry technology with great real estate know-how and customer service, but it’s a great resource for Colorado homeowners, Colorado home sellers, and Colorado home buyers who need information from the Colorado MLS right away, from anywhere.

According to most sources, the homebuying process is simple, and at its core, consists of a few steps, which we’ve distilled down to the basics below.  Of course, buying a house in Colorado is a personal process, and while it may be simple, it’s not always easy.  That’s why COhomefinder consists of a team of people including client care representatives and licensed REALTORs who can help connect the dots between you and your next Colorado property or Colorado home.

Decide on your needs
As a part of the planning stage in your home search, it’s wise to establish a criteria and outcomes for your search.  What’s your price range, what style and size of home are you looking for? (A ranch-style home in Colorado, a Colorado two story home?)   What’s your ideal lot size? Are you interested in the Colorado public high schools nearby?  Are you interested in Colorado homes built during a certain year? Built by a certain Colorado home builder? A good REALTOR is instrumental in this area, however, you can learn a lot about Colorado neighborhoods, Colorado zip codes, and top Colorado properties at anytime by looking through Colorado real estate listings by category.

Find a mortgage professional
Call and meet with a Colorado mortgage lender early, since many buyers find an advantage in being pre-qualified or pre-approved before shopping. Use the mortgage calculator any time, no registration or signup required. 

Establish a relationship with a real estate professional
Find a Colorado REALTOR who’s an expert in the city and neighborhoods in which you’re interested.  Get input about pricing, quality, history, trends, location, associations, and proximity to important amenities. Find out what the Colorado neighborhood demographic is, and tell your REALTOR what’s important to you in a home.

Find Properties that meet your needs
After picking some specific listings, look through each listing’s details carefully, to make sure that the Colorado property meets your specifications.  Take a virtutal tour of Colorado homes when possible.  Take a look at property values of Colorado houses.  Since COhomefinder makes sorting and keeping your properties of interest so easy and convenient, you can share your picks with family members for their input and eventually, a qualified REALTOR.  Make appointments for private showings of Colorado homes that are of the most interest to you.

Narrow the list
Spend a little time each day learning about the Colorado homes on the market using the Hot Sheet, and the Colorado listings blog. If you’ve signed up for Automated HomeAlert, you’ll find the day’s fresh listings in your email inbox. If you’re interested in price reduced properties, check the price reductions calendar for that day, week, or month.

There are also more resources available for Colorado home buyers today than ever. Try some of the free materials through  Colorado’s Department of Regulatory Agencies, The Colorado Division of Housing, or request a Colorado relocation packet.  Before you know it, you’ll be enjoying your next Colorado home.  Welcome.

If Colorado homes are known for their proximity to the mountains, and they are, it’s important to consider that about half of the state consists of some very flat land.  In the middle of the state, running north to south, is where the mountains rise up and decide whether each raindrop is destined for the Atlantic Ocean or the Pacific.  At the meeting of plains and hills, Colorado’s “beachfront,” so to speak, is some of the most coveted Colorado real estate there is.

In Boulder, this uprising of rock creates the celebrated splendor of the Flatirons. In Fort Collins, the hills and giant rectangular sheets of rock form a border of Horsetooth Reservoir. In Estes Park, the peaks rise to 14,000 feet, and are hemmed in by the boundaries of Rocky Mountain National State Park.  In Colorado Springs, the mountain border at the west end of town was once the home of the Broadmoor Hotel’s own private ski resort. (The lifts are now closed for good, but the hotel is as nice as ever.)

Here’s a roundup of some properties just west of center with mountain flavor, the outdoor activities, and the privacy, without the commitment to long commutes to a town or city for everyday ammenities and conveniences.

• Nederland–Just 20 minutes up Boulder Canyon, “Ned” has the basics in town, and the Eldora Mountain Ski Resort.
• Jamestown–Just 20 minutes up Lefthand Canyon, Jamestown is a hit with families and bluegrass band enthusiasts.
• Eldorado Springs–Just 20 minutes from Boulder, Eldorado Springs is a beautiful getaway minutes from Eldorado Canyon, a cliffhanger’s paradise.
• Lyons–Just 20 minutes north of Boulder on highway 36, Lyons is a peaceful small town surrounded by some of the most spectacular mountain scenery in Colorado.
• Golden–Just 20 minutes west of Denver, Golden overlooks Table Mountain, and is the gateway to both “xtreme” and tamer outdoor attractions including Bear Creek and the Coors Brewing Co.
• Morrison–Golden’s next door neighbor is the smaller, more vertical version of living where the buffalo roam, and is home to famous Red Rocks Amphitheater.
• Estes Park–At the edge of Rocky Mountain National State Park, Estes has gained a reputation with tourists and locals for being the epicenter of kinder, gentler living.  But don’t let the atmosphere fool you. It’s also been named “The gutsiest town in Colorado.”
• Manitou Springs–Just 20 minutes from Colorado Springs, Manitou is the alternative to Colorado Springs’ mainstream, big-box lifestyle. (Read: They have little funky shops that are independently owned.)
• Woodland Park–at the edge of Pike National Forest, a little further away from Colorado Springs, Woodland Park homes are usually surrounded by plenty of acreage and trails that go…everywhere.