2019 Review | 2020 Predictions
Since 2012 I've described the Boulder County real estate market as hot. To describe 2019, I'm saying healthy. The story since 2012 has been low inventory and high demand, creating rapid appreciation. Then in 2019, the market flattened out with median prices virtually unchanged. The number of listings increased, but the overall number of sales did too. More inventory eased a longtime supply-vs-demand imbalance. High demand kept prices stable. That's a healthy market. A few highlights:
Single Family Homes. While the median price of single family homes was flat in 2019 looking at Boulder County as a whole, the median price of single family homes in Erie increased by an average of 4.9% and in Superior by 6.5%. These increases compared to the rest of the county should be seen as a reflection of affordability in those markets, which attracted more buyers.
Attached Dwellings (Condos and Town Homes). While attached dwelling median prices were flat in 2019 looking at Boulder County as a whole, the median price of attached dwellings in Erie increased by an average of 7%, Lafayette increased 9.9% and Louisville increased 14.8%. The increases in these markets are attributable to new construction of higher-end condos and town homes than were traditionally available in those markets, combined with affordability.
Interest Rates. The 30-year fixed interest rate started 2019 at 4.875% and ended the year at 3.875%. This decrease helped keep buyer demand up in 2019. Interest rates are expected to stay around 4.0% in 2020, but that could change based on the economy.
I was busy right up to the end of 2019 and am already busy so far in 2020. It is hard to say how the overall economy and election will affect the market through 2020, but I'm predicting an active first quarter based on the number of buyers and sellers I'm seeing now.
Our market traditionally sees the highest sense of buyer urgency in the first half of the year. That was certainly the case in 2019. All signs are that 2020 will look the same: high buyer urgency in the first half of the year and low interest rates resulting in a competitive buying environment.
The lower the price, the hotter the market.
The first quarter is traditionally an excellent time for sellers to be on the market and 2020 should be no exception. For buyers who are not in a time crunch, patience could payoff (as long as interest rates remain low) since the market could get soft as the election approaches with other buyers taking a wait-and-see approach. If you or anyone you know is considering selling or buying, I'm happy to help.
I hope you had a great 2019. Wishing you and your family a healthy and prosperous 2020! As always, thank you for your business, referrals and friendship. - Rich