Quick Market Update

I'm following up again this month about the slowing real estate market since that is the hot topic these days. It's too soon to prove it statistically, but the Boulder County market appears to have topped out around mid-May of this year. Your property may not be worth quite as much as it was a couple of months ago, but it's still worth more than it was a year ago. The market traditionally slows in summer and this year feels a bit slower than usual as buyers proceed with caution because of the higher interest rates. As we get further into the year and I have more stats, I'll be able to tell you about any market changes more accurately. In the meantime, I want to provide you with some information to keep everything in perspective. We are coming out of the craziest real estate market I've ever experienced and slowing down is healthy in my opinion. These stats show that the real estate market is still very strong and stable:

Based on the current stats, the Boulder County real estate market is still very strong. For sellers, you will need to price your home more aggressively in order to get it sold, but it should still be a premium price compared to a year ago. For buyers, there are more homes to look at and prices are more negotiable. The higher interest rates will reduce your purchasing power, but getting a better home for a lower price can offset the higher rate. 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

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