Hello everyone!As I look over the Boulder real estate market for the first quarter of the year, I can begin to see how the pandemic influenced the market and what is likely to happen. Briefly,
2019 YEAR END BOULDER REAL ESTATE REVIEW
Dated: February 21 2020
The market took off with a bang starting Jan 1. Why so early? This is actually a nationwide trend. Buyers have been starting looking for their home early vs waiting for the traditional Spring buying season.
As expected, the Boulder Valley area real estate review and market looks to be mostly sunny.
Seriously though, we typically look at several metrics together to get a picture of what's going on. However, what we're noticing is that the micro markets are behaving very differently from each other. Therefore big general sweeping statements are not always applicable and often not meaningful. So if you want to know what your home value is currently, please give us a call so we can do a granular, in-depth analysis for you.
IMPORTANT NOTE: The computer generated reports are just that - computer generated. They have not been in your home and know all the fine points that need to be considered for an accurate valuation.
That being said, here is an overview of what is happening:
- less inventory - down 16.5% from last year
- more under contracts - up 26.5%
- more sales - up 19.2%
- fewer months of inventory - down 33% to only 1.4mo
- higher median sales prices - up 14.7% to $625,000
- and prices/sqft - up 16.1% to $223/sqft
- YET we're also seeing longer days on market - up 16.4%
- and a lower median list/sales price ratio - down to 96.8%
What does all this mean to the Boulder market? Well the most significant tell is that while we have very little inventory, buyers are unwilling to buy homes they consider overpriced. It also means a well presented and marketed home, priced right, will still likely sell in the first weekend with multiple offers (only 2-3 offers vs 10, and it will likely be closer to ask these days). The longer a home is on the market, the less likely it is to get an offer at ask, even though there are not many to choose from. This is because we're seeing that buyers are unwilling to accept just any home and are starting their searches earlier so that they can afford to wait for the right home and are ready to pounce when it does come available.
DAYS ON MARKET
Unsurprisingly, the Single-Family Home market is behaving very differently than the condo/townhome market as evident by the Days On Market statistics below.
SOLD PRICE PER SQ FT
You can also see this trend below, but look at the timing of the highest value for Single-Family Home was in Sept vs March for attached homes.
AVERAGE SOLD PRICE
Highest average sold price is earlier in the Spring season when inventory is lower. Supply has significant impact in the sale price of a home.
CLOSE PRICE TO LIST PRICE RATIO
While many homes sell at list price and a relatively small percentage sell over, the homes that sit on the market for more than 30 days pull this ratio down. This ratio is shrinking due to 2 factors:
1. Sellers are not ready to give up on the idea that we're not seeing double digit appreciation and are pricing for what they want vs what the market will bear
2. Buyers make lower offers on homes that have been on the market for over 30 days, which happens when not priced right
WHEN IS THE BEST TIME TO SELL MY HOME?
Without being flippant, the best time is when you are ready. The spring market brings the most buyers and most competition, so you might be better off earlier or later in the year. It also can depend on your home. Is your view obscured by foliage in the summer? Will your new job wait or do you need to get the kids through school before you move? These are all important factors that we need to respect and work with.
CAVEAT - Our recommendation is to look at when there is less inventory to compete with. A neighbor who is super-motivated and/or sells for less than they should will impact your sale price. Discuss this in detail with your broker. A great broker can help you navigate this situation and help you achieve your goals!
We work with each client to create your custom plan to fits your needs and help you buy and sell your home according to what's happening in your life and within the market. We're here for you.
Invite us for a complimentary consultation or second opinion. You'll be able to make a more logical decision about your move!
Call Jason & Trish at 720-29501604
Since 2013 Jason has been honing the skills to provide you with one of the best experiences in selling or buying your home: one that is as smooth and as stress free as possible. Prior to real estate....
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