2018 Review & Predictions
Our real estate market was hot again in 2018, marking 7 straight years of appreciation! A few highlights:
Single Family Homes, Median Price. Looking at Boulder County as a whole, the median price of single family homes increased by an average of 8.5%. In Boulder and Louisville , it increased 6.4%. In Lafayette and Longmont, it increased 11.9% and 9.5% respectively. Boulder and Louisville's lower appreciation compared to the rest of the county should be seen as a reflection of affordability, not desirability.
Attached Dwellings (Condos and Townhomes), Median Price. The median price of attached dwellings in Boulder County overall increased by an average of 6.7%. Boulder and Longmont outpaced this increase at 9.8% and 11.1% respectively. Superior saw an astounding increase of 32.8%, mostly attributable to new construction of higher-end condos in Superior Town Center.
Single Family Homes, Inventory. The inventory of single family homes for sale decreased throughout our market in 2018 as did the number of sales. Low inventory, combined with robust demand, was the key factor in across-the-board price increases.
Interest Rates.The 30-year fixed interest rate started the year at 4.25% and is ending at 4.875%. This increase has not slowed buyer activity in our market up to this point. Historically the rates are still very low, but we'll have to see if further expected increases impact the market in 2019.
Considering the future:
I have stayed extremely busy right up to the end of this year. It is hard to say how the overall economy will affect the real estate market through 2019, but I'm predicting a very active first quarter, based on the number of buyers and sellers I'm seeing now.
In my best estimation, all signs are that 2019 will look a lot like 2018: low inventory coupled with low interest rates (by historic standards) resulting in a competitive buying environment.
This rule of thumb will remain: the lower the price, the hotter the market.
The first quarter is traditionally an excellent time for sellers to be on the market and 2019 should be no exception. For buyers, looking early 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 2018. Wishing you and your family a happy holiday season and prosperous New Year! As always, thank you for your support through your business, referrals and friendship. - Rich