This month’s Boulder Real Estate Report includes a summary of market activity to date, what it means if you are buying, and what it means if you are a seller. Finally, we will give you a quick glimpse into our crystal ball and tell you what we think is ahead. Do enjoy this Boulder Real Estate Market Report.
What’s Happening in Boulder Real Estate?
As we head toward Summer and Boulderites begin to plan Summer adventures, real estate is expected to slow somewhat in the months ahead. This is typical of the season. Recently, we’ve been noticing more price adjustments than before. This is usually an indication of market stabilization – while sellers continue to expect higher prices, buyers are starting to hold the line. Thus list prices get adjusted, usually downward – but not by a lot, and then we have a sale.
How long does it take a home to sell in the Boulder area? Well, days on market is up by 16%, from 36 days to 42 days on average. This is an average. Some homes will sell in 3-7 days, others will linger longer.
So the markets are behaving a bit “squirrelly” lately … I’ve also heard them described as squishy, transitioning, fractured, and disjointed. I like disjointed because it really captures what is happening. If you google “define disjointed” you get:
lacking a coherent sequence or connection.
“piecing together disjointed fragments of information”
synonyms:unconnected, disconnected, without unity, disunited, discontinuous, fragmented, fragmentary, disorganized, disordered, muddled, mixed up, jumbled, garbled, incoherent, confused, fitful, erratic, spasmodic, patchy, scrappy, bitty, piecemeal; etc
I can’t think of a better single descriptor for our overall market at the moment…. You might hear that the (national) real estate market is doing one thing, the new home sales another, yet you see a third market (or maybe even a 4th!) in your neighborhood and on your block. It might even be that both you and your neighbor have similar homes for sale and are seeing completely different results!
A Look at Housing Stats
What’s more telling is looking at the numbers… In broad strokes, yes we slowed like we thought we would. Yet the graph below shows that instead of the same or more sales as the same time last year, we have the same or few sales.
Until you start looking at individual sectors. Focusing in on Louisville, since that’s this month’s deep dive, you’ll see that it’s not following the slowing trend – There are 2 fewer sales than June 2018, and the Median sales price is up 3.2%, the Av sales price is up 9.1%, there is one more listing than last year, two fewer homes on the market and 2 more under contract… The average list price has gone up and months of inventory down. So what does this really mean: Well doing that deep dive and looking at the two most popular price bands, the $750,000 – $1,000,000 sector and the $500,000 – $750,000 price band of single family homes… Red means the value decrease, and green means it increased…
And the short version is the two neighboring price bands are almost exactly opposite of each other.
What does this mean for buyers?
We are still very much in a seller’s market. Lowball offers are generally not being answered. New listings are often still seeing multiple bids (usually 2-3 offers vs 10+!) and while prices are increasing, we’re seeing that appreciation closer to 4% than 10%. However, knowing about lack of inventory, strong employment and desirability of Boulder County area, there still is not likely to be slump anytime in the foreseeable future.
The good news is that while Boulder-area is still tough for buyers, as interest rates lower and homes not appreciating as quickly, it might be the perfect time to buy as you can afford to spend that little bit more on the home vs interest rate.
What does this mean for sellers?
The market may be begging to transition to a buyers market. It definitely means that the days of double-digit appreciation and 10+ multiple offers is a thing of the past (for now).
It also means that you need to do more in order to sell your home for top dollar – that doesn’t necessarily mean an all new kitchen with top-of-the-line appliances, yet it does mean that you’ll likely need to paint, stage, and do more upfront work to make the most of the first days on market and maximize the marketing push.
If you’re in the market to sell, give us a call to talk. Because real estate is hyper-local, we will look at your home and hyper-local market to help you determine the best path for you.
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