2017 Review & Some Predictions
Our real estate market was hot again in 2017. A few highlights:
Surrounding cities in Boulder County outpaced the city of Boulder as far as appreciation. Looking at the county as a whole, the median price of single family homes and attached dwellings increased by an average 7.3%. Meanwhile in Boulder, the median price of single family homes increased 2.4%, with attached dwellings decreasing 3.6%.
Boulder's lower appreciation compared to the rest of the county should be seen as a reflection of affordability, not desirability. Boulder's decrease in the median price of attached dwellings should be seen as a correction, because it increased by an astonishing 32.7% in 2016.
The inventory of homes for sale increased throughout our market in 2017, but the number of sales increased as well, indicating that demand continues to outpace supply.
The 30-year fixed interest rate varied between 4.25 - 4.5 percent the first half of the year, and settled down to 3.875% - 4.125% percent the second half of the year. Despite the slight drop, experts predict that the 30-year fixed rate will rise to 4.5% in 2018.
Considering the future:
All signs are that 2018 will look a lot like 2017: low inventory coupled with low interest rates (by historical standards) resulting in a competitive buying environment.
This rule of thumb will remain: the lower the price, the hotter the market.
The City of Longmont is still the most affordable market in Boulder County and had the highest appreciation of single family homes in 2017 at 9.8%. As a result, single family homes there will likely outpace the rest of the county in appreciation in 2018.
I'm predicting a very active first quarter, based on the number of buyers I'm meeting who are starting to look now as part of a planned move in 2018.
The first quarter is traditionally an excellent time for sellers to be on the market and 2018 should be no exception. For buyers, being on the market early in the year to get ahead of appreciation is a good idea. If you or anyone you know is considering selling or buying, I'm happy to help.
I hope you had a great 2017. Wishing you and your family a happy holiday season and prosperous New Year! As always, thank you for your support through your business, your referrals and your friendship. - Rich