Weekly Market Update, Real Estate Statistics & National News; December 8, 2023

 

 

LOCAL MARKET TAKEAWAYS

Market activity persists across all price segments despite predominantly low inventory levels. Interest rates have experienced a decline, prompting buyers to monitor fluctuations and secure a favorable rate when possible. Cash buyers maintain a robust position in the current market landscape.

 

Local Market Nitty Gritty – Boulder County

Last week, Boulder County realtors reported the introduction of 40 new listings coming to the market, a notable increase compared to 36 in 2018, 12 in 2019, 32 in 2020, 43 in 2021, and 32 in 2022. According to Boulder realtors, for a slow real estate year, this is a decent amount of new inventory, particularly at this time of year.

Examining the year-to-date under-contract data underscores the slower dynamics in this year’s market. Currently, there have been 3,315 year-to-date (YTD) under-contracts. To put this in perspective, the YTD under-contract count in 2018 was 4,043; in 2019, it was 4,209; 2020 saw 4,496; 2021 reached 4,685; and in 2022, the YTD sales were at 3,600.

Over the last four weeks, the Burgess Group | Compass Boulder realtor team observed weekly price reductions of 33, 69, 56, and 79, in line with the usual seasonal trend. As you can see below, it is common for price changes to reduce at this time of year.  Keep in mind that some sellers remove their properties from the market during the winter holidays.  This is already starting; our overall inventory for Boulder County right now is at .6 months’ supply of inventory – which is an extremely low amount of inventory.

Housing payments have fallen for the fifth consecutive week, with the typical U.S. homebuyer’s monthly mortgage payment at $2,575 for the four weeks ending November 26. This is a $164 decrease from last month’s peak of $2,739 but a 13% year-over-year increase.

The decline in monthly payments is attributed to decreasing mortgage rates, with the weekly average 30-year mortgage rate at 7.29%, down from October’s high of 7.79%. The daily average is 7.13% as of November 29, the lowest since September. Despite a 4% increase in the median sale price, prices are up due to low inventory, with the total number of homes for sale down 7% year over year. However, new listings have increased by 6%, the most significant uptick in over two years.

Buyers are responding to slightly improved conditions, as mortgage-purchase applications have risen by 5% week over week. Redfin economist Chen Zhao attributes the drop in mortgage rates to easing inflation and investors betting on an earlier-than-expected Fed interest rate cut.

Experts advise serious homebuyers to compare housing costs to recent highs, as housing costs are currently at their lowest level in three months and are unlikely to drop significantly soon, making it a relatively favorable time to lock in a rate.