Locally, price reductions appear to be stabilizing. inventory is slowly increasing, and buyers are buying at a seasonally appropriate rate. Nationally, July price reductions varied enormously from city to city.
Local Market Update – Boulder County
Our Boulder realtor team is reporting on 118 new listings coming to market last week, vs 80 in 2018, 111 in 2019, 95 in 2020, and 115 in 2021 ; last week saw more inventory come to market than in the past for years (y-o-y).
91 properties went under contract as indicated by Boulder County realtors, in comparison with 87 in 2018, 87 in 2019, 101 in 2020, and 119 in 2021; our under-contract rate this last week shows a healthy amount of buyer participation.
Activity By Price Band – Boulder County
Last week most of the buyer activity was in the $1-1.5mm, the rest of the market was relatively quiet. To note, that week school was starting and many people are still on vacation in August. We typically see buyer demand increase after Labor Day.
There were 82 Boulder County price reductions last week. Price reductions may have peaked in the second week of July. The market has now had four weeks of price changes lower than that peak, with price change rates in the 80s and 90s. We will have to keep watching to see if the market correction truly has peaked.
TO SUM THE LOCAL MARKET UP VIS- A-VIS PURCHASES AND SALES:
According to Boulder real estate agents, it’s is an easier time to buy, with far less competition, more time to consider your options, and more inventory. It is a good opportunity for buyers to find something that they love and then to refinance when rates go down. Cash buyers are having lots of outstanding opportunities.
Sellers, as you can see from the chart showing City of Boulder and Boulder County inventory, there are still good opportunities to sell, with more inventory recovery in Boulder County than in the City of Boulder. The luxury market has a fair amount of inventory and functions like a buyer’s market in some categories. Sellers will have the most success going to market with homes that have been well prepared, pricing correctly from the start and expecting the sale to take 30 days or longer.
July 2022 Price Reductions Around The Country
Nationwide, buyers have come to expect lower prices because of a cooling market.
Pandemic boomtowns have seen the most change in their markets.
Boise was tops, with 70% of sellers dropping price. Denver came in 2nd with 58% dropping price in July.
(To note, Denver has had more price decreases than Boulder. For example, last week Denver 53% of sellers had price reductions last week, where in Boulder 43% of sellers have price reductions, down 5% from 48% the week before.*)
Some pandemic boomtowns are still booming. Miami and Honolulu, for example, both only had 18.5% price reductions in July. The majority of markets that saw few price reductions were not pandemic boomtowns.
Price drops are likely to flatten out as sellers come to terms with the shifting market. As new properties come to market, they will hopefully be priced more appropriately for today’s market.