Quick Market Update

Higher interest rates have slowed down the real estate market in Boulder County and the results of the slow down are interesting. Earlier this year I reported that the inventory of available listings had increased dramatically since last year (up 232% in March). Now that we are almost halfway through 2023, a different trend has emerged. The number of single family home listings is down 11.5% compared to a year ago and the number of attached townhouse/condo listings is down 5.4%. The number of sales is also down with single family home sales down 24.5% and townhouse/condo sales down 12.7%. You might assume that higher interest rates and a slower market would lead to a dramatic drop in home values, but the limited inventory has kept prices pretty stable. The median sales price of single family homes is down 5% from a year ago and the median sales price of townhouse/condos is down 3.4%. I would consider these 3.4% to 5% price decreases we are seeing today very modest, since one year ago was the top of the market after 10 years of appreciation.

So, what is happening? The Boulder County real estate market is very stable. Traditionally, periods of rapid appreciation are followed by periods of prices being flat. During flat periods, we generally don't see many distressed sales where sellers are taking a huge loss. Many sellers in Boulder County are financially able to wait if the market conditions are not right for a sale. As a result, many sellers will pull their home off the market if they don't get their price. This is contributing to the decrease in available listings and the decrease in the number of sales. Another factor leading to the decrease in listings are the interest rates. A homeowner with a 3.25% mortgage may hesitate to sell and buy a new home if their new mortgage rate will be at 6.75%.

The factors mentioned above will lead some sellers to stay put for awhile. Over time, some homeowners will decide to sell at a lower price than they had wanted because they are simply ready to move on or are excited to start their next stage of life. The Boulder County real estate market is very stable and is still very strong. For those who want to sell, they will just need to be a bit more competitive and patient in the current market than in the last few years. It's impossible to time the top of the market, but now that we know the market has peaked, I would encourage sellers not to feel bad about selling for close to what they could have gotten at the peak. Selling for 95% of peak market value still represents a huge profit for most homeowners in Boulder County.

For buyers, there are good opportunities in the current market. Buyers may not have a huge number of available homes to choose from, but they have more time to make decisions and more negotiating power.

As always, there are opportunities for both sellers and buyers. Please contact me to discuss how to make the current market work for you. Also, I hope you enjoy the upcoming July 4th Holiday and Happy Summer!

All the best,

Rich

Spring 2023 Market Update

I have always reported that spring is the best time to be on the market for Sellers. That is still the case, but year to date we are seeing a more normalized market compared to the last few years. The inventory of available homes is up 232% from a year ago when inventory was at the lowest on record. The number of sales is down 35% from a year ago when single family homes were selling at 104% of list price compared to 98% today and attached dwellings were selling at 103% of list price compared to 99% today. The market is inconsistent with some areas moving quickly while others are moving more slowly. The changing market has also impacted the median sales price with single family homes in Boulder County selling for an average of 1.5% less than a year ago and attached dwellings selling for an average of 3% less than a year ago. Days to sale have increased with last year being about 60 days to sale and this year being about 90 days to sale.

With all of that being said, the market is still very strong. Sellers will just need to be a bit more competitive and patient in the current market than in the last few years. Well-priced properties that show well and are in highly desirable areas are selling quickly, but Sellers with properties that are dated or are in a location that are less popular with Buyers need to price their properties more competitively.

For Buyers, there are some positive aspects to the interest rates being higher. Inventory is up substantially, so Buyers have more to choose from and in some cases can negotiate a better price. Also, there are some good options for loans with lower interest rates.

Whether you are considering selling or buying, there are opportunities in the current market. Please contact me to discuss how to make the current market work for you.

Best, Rich

2023 Market Update

2023 marks my 29th year in real estate. I couldn't have made it this far without you and it has truly been a privilege working with you! In looking ahead at what this year might look like; I can only guess it's going to be interesting as always. Since RE/MAX of Boulder began tracking Boulder County home values in 1978, annual appreciation has averaged 6.185%. In 2022, the median price of single-family homes in Boulder County increased 7.4% and attached dwellings were up 12.4%. Not too shabby in a year when interest rates doubled and the number of sales decreased 27%. I believe that values will remain stable and most likely rise a bit in 2023 since inventory levels remain near historical lows and Boulder County continues to be rated one of the most stable real estate markets in the country. In the context of other investments – stocks, bonds, crypto-currency, etc. – buying REAL property in Boulder County rises to the top as a powerful and consistent way to build wealth.



It has been my observation over the years that the best time to buy real estate in Boulder County is always 6 months ago, so if you are considering buying, think sooner rather than later. After 11 years of rapid appreciation, the Boulder County real estate market has settled down a bit and buyers have more options. Also, interest rates have risen, but lenders have some creative loan programs. If you’re going to sell this year, the first quarter is traditionally an excellent time to be on the market. Buyers have a high sense of urgency in the first quarter and I’m already seeing good market activity and quick sales in some cases.

As we get into the swing of a new year, I’m writing to offer you my time. Let’s meet for a cup of coffee and review your real estate portfolio (whether it’s one property or many). Together, we can brainstorm goals or talk through any options you may be considering – upsizing, downsizing, remodeling, venturing into income property, purchasing a 2nd home outside of Boulder County or leveraging your investments to increase your holdings.

I’m optimistic about our market in 2023! I hope I’ll have the opportunity to put my experience and passion for real estate to work for you – whether it’s all-around service or just some straightforward advice. Also, please know that I always have time for your friends, family and co-workers and greatly appreciate your referrals. I promise to provide outstanding service that will make us both look good.

Best, Rich