Last week’s Boulder County real estate numbers were lower than usual, we’ll explore why. Also, we’ll look at the national decline in seller “iBuyer” programs and national trends that may create buyer opportunities.
Keep scrolling to find out about some really big ideas we’ve been GROWING, which we will be announcing next week.
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 was at 99 units last week, a big increase week-over-week. In both 2019 and 2018, 146 units of inventory came to market year-over-year.
For under-contracts, last week we had 72, as compared with 110 in 2019 and 90 in 2018 Y-o-Y.
<- Click to see the stats!
Economists predicted that our under-contract numbers would decrease some, as increasing interest rates impact buying power. We will have to see if this decrease in inventory and under-contracts holds, or if this was a result of spring break and/or our recent shooting tragedy
.
Putting last week’s numbers into other terms, last week we had 1.08 months inventory, while in 2019 we had 2.12 and in 2018 we had 1.95 months inventory Y-o-Y.
Remember that a balanced market is around 5-6 months of inventory; below 5 months inventory is a seller’s market. Northern CO has mostly functioned as a seller’s market for many years, as demonstrated by 2019 and 2018 supply of inventory.
How Is The Local Market
By Price Band?
Looking at the price bands, the under-contract decrease created lower sell-through rates last week in all price bands except for $0-500k. Buyers should be having a small reprieve this week, with a little more inventory to shop.
<- Click to see the stats!
National Real Estate Trends
ibuyer Programs Decline; Buy Opportunities in Rentals/Commercial
“iBuyer” (short for instant buyer) is a term is used to describe real estate companies (Zillow, Redfin, and Opendoor) that purchase houses from homeowners for quick cash. iBuyers typically charge sellers a higher fee than a traditional real estate agent would, given the certainty of a cash offer with a flexible move-out day and the convenience of avoiding home prep, showings and open houses. These companies then make necessary improvements to the homes and resell them.
Since there is dearth of inventory, and even challenging properties are selling, sellers are mostly opting to sell through the traditional sale process to net more income.
Although iBuyer programs have gotten a lot of attention since they began in the past 5 years, they remain a very small segment of total inventory sold, as noted through the charts here.
National Buyer Opportunities
Nationally, the Zillow Observed Rent Index is trending up for the second week in a row. This may indicate that rental rates are now back on a more predictable trajectory. Rentals and commercial property may be good overall buys at this time.
For many people in our community and our country, the pandemic was a tipping point — the push that caused them to visit a food pantry for the first time.
Local food insecurity increased by an estimated 35% overall. Hunger among our community’s kids jumped by an alarming 64%. Visits to local food pantries grew by 15%.
Stay tuned to see how Burgess Group | Compass has been growing some big ideas with an ambition to help.
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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.
