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

September Market Update

The Boulder County real estate market has continued to slow into September with available inventory increasing and the number of homes under contract decreasing. Statistically, this is normal for this time of year, but rising interest rates are causing housing demand to slow more than usual as some buyers pause to see what will happen with interest rates. This is most likely a temporary situation.

There has been speculation by some economic observers that housing prices will be falling. However, there is one thing that is overlooked in these predictions when it comes to our market - housing supply. The inventory of available homes in Boulder County is still close to the lowest in the last 20 years with the exception of 2021 which had the lowest amount of housing inventory on record. The rapid double digit appreciation of 2020 and 2021 may be behind us, but the Boulder County real estate market is among the most stable in the country. According to a recent CoreLogic Home Price Insights Report, they expect to see a more balanced market in the next year with year-over-year appreciation slowing to 3.8% by July 2023. Annual appreciation at 3.8% may not sound exciting, but it's way better than falling prices.

Housing supply has been on a downward trend for many years in our market which has helped to stabilize and increase home prices. These factors point to our real estate market continuing to remain strong and stable. If you want to buy or sell, I would encourage you to reach out to me for questions, ideas and advice.