Locally and nationally, buyers may still have an opportunity to move forward with some negotiating room, but that window is starting to close.
Sellers, there are more buyers now and some properties are getting multiple offers; inventory is still historically low.
LOCAL MARKET TAKE-AWAYS
BUYERS
Buyers have a strong buying opportunity right now. The current local 97.5% list-to-sale price ratio means that sellers are still negotiating. Inventory is rising, so you have more options. Average Days-On-Market (DOM) is 57 days, so buyers can take a little more time deciding on purchases. As more buyers enter the spring market, prices will go up. Our Boulder realtor team is already seeing an increase in multiple offers across disparate parts of the market.
SELLERS
As you can see from our chart below, inventory is still historically low, providing a strong sell opportunity. Sellers, mortgage lock rates (a leading indicator of buyer activity) have gone up. In order to be successful in this market, you have to prepare for market; this is critical for getting an offer or even multiple offers. Connect with Burgess Group Boulder real estate agents early so that you have the best success.
Local Market Nitty Gritty – Boulder County
Local Boulder realtors report on 63 new listings coming to market last week, vs 74 in 2018, 90 in 2019, 85 in 2020, 65 in 2021 and 66 in 2022. So, last week’s new listings were a little bit fewer than the low inventory arenas of 2020 and 2021.
43 properties went under contract, in comparison with 78 in 2018, 81 in 2019, 90 in 2020, 78 in 2021, and 53 in 2022. So, under-contracts are still substantially lower this year, with a week-over-week slip also. This lower under-contract number likely reflects our historically low inventory.
Please remember that 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.
Activity By Price Band and Price Reductions- Boulder County
In general, we’ve had consistent activity in all the price bands since the beginning of the year. Last week saw lower sell-through rates in the high luxury market. $1.5mm-2mm had the greatest sell-through rate last week at 125%.
Price changes popped up last week to 39. In the weeks since January 1st, we’ve had 15, 32, 25, and 26. As you can see from the chart below, these are far better numbers than last summer/fall, representing a notable and quick turn-around in the market since last fall. Our Boulder County realtors will keep checking price changes as a metric of seller confidence.
National Market Take-Aways
Inventory is up over 2022 numbers, but down below 2019 numbers. Inventory is still historically low. Price changes are dropping, which reflects more buyer activity and a tightening housing supply.
National Market Nitty Gritty
Single family home inventory has moved up 78% year-over-year for the first week in 2022, but it is down 45.4% year-over-year compared to the first week in 2019. Inventory is still historically low, providing . A key will be when inventory starts increasing in 2023 – so far inventory has declined about 9.7% over the first six weeks of 2023.
The price reduction chart below shows us supply and demand also at play.
Every line below represents a year. This past week only had 32% of homes reducing price, which is a reduction. This year’s dark red line below shows rapidly reducing price reductions. If the dark red trajectory continues, it could be below 30% in a few weeks.
That change would illustrate a remarkable turnaround from the conditions last fall.
Click anywhere below to check out Burgess Group | Compass Boulder realtor team’s current exclusive listings
We’re happy to announce that with the help of Catherine, Andy has been named the #5 Realtor in Boulder County for the year of 2022 by Real Producer’s Magazine.
