Summer Market Update

Last month I reported that the real estate market appeared to be slowing down and that I'd give you an update as we got into summer. Now that we have reached summer, I can report that the Boulder County real estate market has officially slowed down. In March of this year, the inventory of available homes was down 40% from a year earlier and the number of homes under contract was at 65%. This imbalance was leading to intense multiple offer situations and rapid appreciation. Currently, the inventory of available homes is up 33% from a year ago and the number of homes under contract has decreased to 45% which is causing prices to level off. The market traditionally experiences a seasonal slow down as we get into summer and approach July 4th. This year, the higher interest rates are causing the market to slow a bit more as buyers take a breath and watch to see what will happen next. The Fed’s plan to slow inflation by increasing interest rates is definitely having the desired effect in the real estate segment. I feel this is healthy after the rapid appreciation we have been having for the last 2 years. The good news is that properly priced homes that show well, will still sell. It just may take a few weeks instead of a few days. For buyers, there is an opportunity to look at more homes and have a better opportunity to buy. Even though interest rates are up, which reduces purchasing power, buyers may be able to purchase a home at a better price than a couple of months ago when we were at the peak of the market. Now is the time for discouraged buyers to get back in the game! Please reach out if you want to discuss the current market with me and how I can help to make it work for you, whether you are buying, selling or both. All the best, Rich

May Market Update

In my March newsletter of this year, I reported that the inventory of available homes was down 40% early this year compared to early last year. As a result, I was experiencing the hottest seller's market I had ever seen. At this point, we are finally seeing more properties on the market with the inventory of single family homes in the City of Boulder down 14.1% YTD while the inventory of single family homes is up in the rest of Boulder County by 7.4%. Attached dwellings are still lagging a bit with the inventory in the City of Boulder down 25.8% YTD and the inventory of attached dwellings in the rest of Boulder County down by 8.3% YTD. Rising prices and rising interest rates may be starting to have an effect on the market. The number of showings on available listings has decreased recently as have the number of multiple offers. I suppose it's still a hot market when a seller gets 15 showings and 4 offers instead of 30 showings and 8 offers, but the numbers seem to be trending down. Also, median prices are up YTD 14% in the City of Boulder and 22% in the rest of Boulder County, so it's still an appreciating market. I'll keeping tracking the trends and update you again as we get into summer. In the meantime, your investment in Boulder County real estate is very secure. Boulder ranked 2nd this year on SmartAsset's report for the Best Housing Markets for Growth & Stability (moving up one position from last year). Since their first report, Boulder has always ranked in the top 3 markets (remaining the number 1 market for growth & stability from 2015-2019). This latest 2022 report reinforces that owning in Boulder County is an outstanding investment. 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. All The Best, Rich

Property Insurance Reminder

One of the biggest problems that emerged from the Marshall Fires is that many homeowners, tenants and HOA's were underinsured. With the dramatic rise in real estate values, the increased cost to replace the personal property inside your home and skyrocketing construction costs, it is extremely important to review your insurance policies and maintain the right insurance coverage. Talk to Your Broker to Review and Update Your Policies Contact your insurance broker (especially if you haven't updated your policy in a while) to review the current coverage on your property. Things to ask your broker:

Single Family Homes

• What are you currently insured for per square foot for replacement cost?

• What is the current actual cost per square foot to replace a home like yours? Depending on your property, you probably want to be insured in the $300 to $500 per square foot range. Many policies that were first issued years ago still are at $150 per square foot which is simply not enough today.

• Do you have enough liability insurance?

• What is your current personal property/contents insurance coverage? Is it enough? Take updated photos and videos of your belongings. Make sure to store these images in a separate location other than your home (like on a cloud based storage folder).

• Ask your insurance broker what endorsements your policy should include - i.e. Drain and Sewer Line Backup, Ordinance and Law, etc.

Condos/Townhomes

• HOA Coverage vs Personal Policy

• What does the HOA insurance cover? What does your homeowner's policy need to cover?

• What is the current actual cost per square foot for replacement for your condo or townhome? Does your HOA have enough building coverage?

• Do you have enough personal property coverage for your contents?

• Loss Assessment Coverage

• Do you have loss assessment coverage?

• Does my policy cover for special assessments resulting from my HOA's wind/hail deductible?

Investment Properties

• Do you have enough coverage for current replacement costs?

• Do you have enough liability insurance?

• Make sure your tenants have renter's insurance for their contents, as well as liability coverage for them & their pets + Drain & Sewer Line Backup coverage.

It can feel like a daunting task to review your insurance coverage, but your insurance broker can help you through it and it is well worth the effort. If you have any questions or need my assistance- I'm happy to chat.

Best, Rich