Spring Market Update

Last month I reported that the number of sales early in 2025 were at a slightly slower pace compared to the start of last year. My theory was that the extremely cold temperatures in January and February were the cause of the slower market. With warmer weather through March, the number of sales are starting to catch up to this time last year. I'll report on this again at the end of April to confirm if it was the weather that led to the slow start in 2025 or if other concerns seem to be affecting the market.

Interest rates have fluctuated a bit over the last year, but right now they are around 6.75%. This is about the same place they were a year ago. This range may be the new normal, but some economic predictions indicate mortgage rates may decline modestly this year. This would ease the cost of borrowing and generate an increased demand for home sales.

For Buyers - The question many are considering is whether to buy now with rates in the 6.75% range or wait until rates drop a bit. My opinion is that it's best to buy now rather than later. If interest rates begin to decrease, it will lead to an influx of buyers into the market. The pent up demand will result in increased competition and in turn drive up the prices of available homes. Buying now means more selection, less competition and lower prices. And, there is always the option to refinance if interest rates drop.

For Sellers - Spring is the best time to list because buyers have the highest sense of urgency this time of year and market activity as well as the number of sales will increase through June.

Whether you are considering buying or selling, please contact me anytime to discuss how to make the current market work for you.

Happy Spring and All The Best,

Rich

Boulder County Real Estate 2025

2025 marks my 31st 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 approximately 6%. In 2024, the median price of single-family homes in Boulder County increased 3.5% while the median price in the City of Boulder dropped 0.2%. The median price of attached dwellings in Boulder County increased 1.4% in 2024, but is still 3.1% lower than the top of the market in 2022, while the median price in the City of Boulder increased 3.5% in 2024, but is still 4.4% lower than 2022.

Property values in Boulder County traditionally flatten out when the market slows and we are currently in that cycle. With the slight ups and downs over the last couple of years, prices are approximately where they were at the top of the market in 2022. The good news is that prices haven't dropped dramatically even though interest rates have been hovering around 7%. Also, the number of sales of single-family homes throughout Boulder County has not decreased substantially since the top of the market, except in the Mountains where the number of sales is down 20%. Attached dwellings have struggled because of high interest rates with the number of sales being down 20% or more across all areas of Boulder County.

Looking ahead, I believe that the value of single-family homes will most likely rise a bit in 2025 since inventory levels remain near historic lows. I believe the value of attached dwellings will remain flat because of decreased buyer activity driven by higher interest rates. The good news is that 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 a decade of rapid appreciation, the Boulder County real estate market has settled down a bit and buyers have more options. Hopefully, interest rates will drop a bit this spring. 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 2025! 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

Quick Summer Market Update

We are now two years out from the top of the real estate market which was in June 2022. A year ago, I was reporting that prices had dropped slightly from the peak. Now, prices have recovered and are right about where they were at the peak. The chart below shows that the number of active listings has increased dramatically, yet prices are up slightly and the number of sales is up slightly. Buyers have more choices and are taking more time to make a purchase decision, but prices are stable. Because inventory is up and the market has become more competitive, not all sellers will get their home sold. For sellers, you will need to price your home more aggressively in order to get it sold. For buyers, there are more homes to choose from, interest rates have come down and are forecast to come down further in September, so this is a great time to buy.

With lower interest rates on the way, I'm predicting a busy 4th quarter. Please reach out if you want to discuss the current market and how I can help make it work for you, whether you are buying, selling or both. 

All the best,

Rich