Last week we saw an uptick in listings week-over-week, with a slightly slower level of under-contracts, giving us more (needed!) inventory. Nationally, we discuss why we’re not currently in a bubble.
What can be done with lush, fallow land, just minutes from Pearl Street? How can we reduce local hunger and make a dent in the national food crisis?
Join us next week to see how some small (but mighty!) organizations can have an impact on local and national food security.
Aggregate Boulder County Market
3/28 – 4/4, 2021
How is The Local Market As An Aggregate?
(We’ll be overlooking the 2020 shutdown numbers until the middle of May. We’ll refer to 2019 and 2018 as examples of what was previously normal in our market. The 2020 numbers will become relevant again in the middle of May.)
Inventory! Last week we saw a huge jump in inventory, with 127 houses coming to market. In 2019 there were 135 new listings, and in 2018 there were 124.
Under-contracts looked good at 107, with 116 in 2019 and 114 in 2018. This number being a little lower than the comparable years is a good thing, as it gives our inventory time to replenish a bit.
Our month’s supply of inventory popped up to 1.59 months. In 2019 it was 2.55 and in 2018 it was 1.97.
How Is The Local Market
0-$1mm and $2mm+ had lower sell-through rates, giving buyers a bit of break this week in those categories. $1-1.5mm was the hottest category, with a 188.9% sell-through rate.
Again, those lower sell-through rates reflect a little more inventory available in the market.
<- Click to see the stats!
National Real Estate Trends
Why This is Not Another Housing Bubble
There are a handful of reasons why this is not another housing bubble, as follows.
Please reference the link at the bottom of our newsletter to Ben Carlson’s blog “Why This Isn’t Another Housing Bubble”.
1.) There are more credit-worthy borrowers. Credit scores on mortgage originations are strongly up.
2.) Supply is constrained because of a.) a larger number of buyers, b.) fewer people put their homes on the market because of COVID, and c.) fewer new homes are being built by new home builders as a hangover from the last recession.
3.) People have way more equity in their homes than they’ve ever had before.
4.) Canadian and British housing price increases have outpaced US housing price increases throughout this century. US prices have risen 118.5%, British 166.3%, and Canadian 253.0%.
As Carlson explains, “a combination of the pandemic, remote work and low-interest rates have all pushed even more people to start buying houses.
“Just because prices are rising does not automatically make something a bubble.
Sometimes prices rise for good reasons. You may not like those reasons but that’s not the same thing as a speculative mania. Could this turn into a bubble? Sure, never underestimate the American desire to take things to excess.
Jennifer comes to us with many years of experience and has worked for Colorado Landmark Realtors and Re/Max Boulder.
Before becoming a REALTOR®, Jennifer worked in Sales, Marketing, and Public Relations and is Certified Luxury Marketing Specialist. She utilizes this experience day-in and day-out to offer her clients consistency in communication, impeccable organization, strong negotiation skills, and a commitment to providing the best possible (and fun!) Real Estate experience.⠀⠀
Jennifer believes that a home is more than an investment; it’s a place to make memories. As your Real Estate Advocate, she guarantees to make your transition between homes comfortable and easy on your emotions.⠀⠀
When Jennifer is not tending to the needs of her real estate clients, she spends her time trail running, cycling with friends and husband Glenn, and enjoying the outdoors with her two kids and doggo named Oakley.⠀⠀
Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws.
All material presented herein is intended for informational purposes only. Information is
compiled from sources deemed reliable but is subject to errors, omissions, changes in price,
condition, sale, or withdrawal without notice. No statement is made as to accuracy of any
description. All measurements and square footages are approximate. This is not intended to
solicit property already listed. Nothing herein shall be construed as legal, accounting or
other professional advice outside the realm of real estate brokerage.