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

Why Now is Actually a Good Time to List

Strong buyer demand is driving quick sales and multiple offers in some cases. What's going on? The first few months of the year are traditionally dominated by a high sense of buyer urgency. That's been boosted lately by a drop in interest rates. Buyers are out in force, trying to lock in the lowest rate possible. Many sellers list in June. But with so many buyers out now, it's worthwhile to get a jump on that rush. With less competition, sellers will likely net a better price. In addition, I'm predicting the market will slow down as the election heats up this summer. Many buyers may sit on the sidelines to wait and see what happens. Listing now does not mean you have to move right away. Buyers are flexible with terms; they simply want to lock in a purchase while they can.

Whether you are buying or selling in Boulder County, it's important to have an experienced and committed agent on your side. Call me to better understand your opportunities in the current market.

Millenials Love Colorado

Interest rates have edged up this year. The 30-year fixed rate is currently 4.75%, compared to 4.0% a year ago. Regardless, the real estate market in Boulder County remains strong. The number of sales so far this year are nearly identical to last year. In the city of Boulder specifically, the number of sales are slightly higher.  

Millennials love Colorado. It's currently the #3 state for Millennial relocation, with four cities in the top 25 destinations nationally.  Favorites include  Denver (#8), Fort Collins (#17), Colorado Springs (#20) and Thornton (#25). 

Boulder County cities are less popular among Millennials, and this is likely an affordability issue. We've been hearing about the "graying of Boulder" for years, but again, activity is high. Rising interest rates certainly impact first-time buyers more. It will be interesting to see if higher interest rates eventually slow things down. I'll keep tabs on the stats and let you know what I see.

If you want to discuss current market trends and ways to make the market work for you, p lease contact me. I am always here to help you, your friends, family and co-workers with any real estate need, even if they just want to ask a question. I hope you are having a wonderful summer. - Rich