No Summer Slow Down Yet

Last June I reported that the typical summer market slowdown was not happening despite the pandemic and quarantine and the market was in full swing heading into the July 4th weekend. This year is following the same trend with our hot spring market continuing to remain active into summer. Multiple offers above list price and buyer concessions to the seller are still the norm. Normally, we would be slowing as we approach July 4th, but this year's low inventory seems to have continued to create pent-up buyer demand.

Despite my experience with multiple offers continuing, some local news sources are reporting that the Colorado real estate market is starting to cool off. I haven't seen a cool down in the Boulder County market yet, but I know the rate of rapid appreciation we've been experiencing this year can't continue indefinitely. If the market is cooling down, I feel it will become evident sometime shortly after the 4th of July or by the time school starts in August.

Boulder County's economy and lifestyle continue to attract out-of-state buyers. The latest SmartAsset report ranks Boulder in the top 3 housing markets in the nation for growth and stability. Interest rates have started to rise, but are still near historic lows and buyer demand continues to be robust. If buying or selling makes sense for you now, I would encourage you to move ahead. Please contact me anytime if you want to discuss the current market and how I can help make it work for you.

Best,

Rich

Is this Hot Real Estate Market Creating a Housing Bubble?

You've probably heard how insane the real estate market is this year. Multiple offers, way above list price and all sorts of buyer concessions to the seller are the norm. Here are some very common examples:

• Buyers are taking houses AS IS even if they require some major repairs

• Buyers are waiving appraisal objection deadlines and making up the difference with a larger down payment if the house does not appraise for the contract price

• Buyers are waiving their loan termination deadline and are willing to lose their earnest money if their loan does not get approved

• Buyers are allowing Sellers to stay in the house up to 60 days rent free after closing

Most deals I'm working on include all 4 of the concessions above. With prices increasing rapidly, a common topic of conversation is whether the current market conditions are creating a housing bubble. An article written by our managing broker Jay Kalinski at RE/MAX of Boulder gets more in depth into the subject. Click here to read the full article.

I feel that the fundamentals in the Boulder County market are strong, and this is not a bubble. It is simply a serious lack of inventory combined with a lot of buyer demand. Please reach out if you want to discuss the current market with me and how I can help make it work for you whether you are buying, selling or both.

Best,

Rich

Fall Market Update

After being sidelined this spring because of COVID-19, our market has officially caught up. While the number of available homes for sale is down 10.6% over last year, the number of homes sold increased by 3.5%. With limited inventory and interest rates hovering around 3%, the median price of a single-family home in Boulder County is up 4.2% over last year. Condos are experiencing a similar pattern in Boulder County, with the median price up 4.5%.

The pandemic has people on the move to places with more elbow room and key trends are emerging. In San Francisco, the inventory of homes for sale is up 96% compared to 2019. In New York City, inventory is up 87%. Meanwhile, the number of available homes in Boulder County is down 10.6%, Fort Collins is down 14% and Summit County is down 29.6%. Another trend is that buyers want bigger homes. After falling out of favor for 10 years, the big suburban home is back complete with an office and spaces for home learning.

Whether it's good news or bad, Boulder County's real estate market continues to be incredibly strong. Even with low inventory and rising prices, the current market offers opportunities. If you have a child deferring college for a year, consider buying a house together. I just closed on a home with my 19-year-old son as an owner occupant. We were able to buy with just 10% down and got a 2.99% interest rate. He is renting rooms to some friends who are deferring college due to the pandemic, and wanted to get some experience living on their own. If you want to invest or move to a different home that suits your lifestyle better, let's talk. We can make this market work for you.  – Rich