Boulder Real Estate News & National Statistics – February 18, 2022

By Catherine Blog, Boulder CO, Boulder Real Estate News, Buying, Education, Entertainment, Hot Local News, Hyper Local, National Trends, Newsletter, Real Estate February 21, 2022

Friends,

Locally, according to our Boulder realtor team, think low inventory and highly competitive offer scenarios.

Buyers, below we’re going to talk about why this asking price may not be important.

Nationally, 2nd home purchases are up, investment purchases are up, and in general out-of-town buyers have a good chunk more to spend.

Local Market Update – Boulder County

Our Boulder real estate agents report on 63 new listings come to market last week, vs 71 in 2018, 82 in 2019, 78 in 2020, and 75 in 2021.

63 properties went under contract, in contrast with 66 in 2018, 86 in 2019, 69 in 2020, and 81 in 2021.

We had 1.40 months supply of inventory, in comparison with 2018’s 1.97, 2019’s 1.71, 2020’s 1.95, and 2021’s 1.74 MSI.

With lower inventory, sellers are feeling pretty confident about their chances of selling. This is reflected in the (coincident indicator) price change numbers (usually a reduction), which are extremely low. Last week’s market had 8 price changes, where there were 31 in 2018, 42 in 2019, 23 in 2020, and 12 in 2021.

GIVEN this market info, in general, there is only one kind of deal in the market right now. The “deal” is getting the home.

Anecdotally, there still are a few overpriced unicorns that are selling below asking. We know of one over-priced property in which the seller said he’d be happy selling 10% below asking; this is certainly not the norm, with most properties right now selling 5%-20% above asking.

While this sounds staggering, as a buyer you need to keep in mind that the asking price of the property may be completely irrelevant. Using a good Boulder realtor who can figure out what the asking price should truly have been is key, then figure out your offer from there.

In a market like this, the asking price may be irrelevant to market value; sellers have many different reasons for setting their asking prices, which may not reflect today’s market value.

In a significantly appreciating market, a successful buyer is the buyer who gets under contract. Don’t fixate on asking price or % over asking – it is likely a red herring. Think ‘future’ instead; think about the shortage of inventory, the extraordinary number of buyers circulating in the market, and the high likelihood of significant appreciation in the next two or three quarters. All these things create the property’s market value.

There is only one kind of deal in the market right now. The “deal” is getting the home.

Activity By Price Band – Boulder County

Though inventory is thin, Boulder County realtors report there is a little more wiggle room above $2.5mm, from $1.5-2mm, and between $500k-1mm.

In general, there is a fair amount of activity in all price ranges.

re up, and in general out-of-town buyers have a good chunk more to spend.

In Q4 of 2021, investors bought 18.4% of US homes, roughly 80 million homes worth $50bb.

Nationally, relocating buyers continue to have approximately 30% more to spend than local buyers. In the Denver metro area, out-of-town buyers have 14.8% more to spend.

The Vacation-Home boom in 2022, with demand up nearly 90% over pre-pandemic levels. Primary home demand is up nearly 42% over pre-pandemic levels.

Andy Talks:

Getting Buyers Under Contract in a Seller’s Market

With lower inventory, sellers are feeling pretty confident about their chances of selling.

Learn how our Boulder real estate agents here at Burgess Group | Compass use their experience and market knowledge to craft winning offers for our buyers.

Learn More Here

Click anywhere below to check out our Boulder realtor team’s current exclusive listings.

Housing Starts Decreased to 1.638 million Annual Rate in January

Foreign Investor Acquisitions of U.S. Commercial Real Estate

Increased 49% in 2021

Fed’s Bullard says inflation ‘could get out of control,’ so action is needed now

Weekly Initial Unemployment Claims Increase to 248,000

Credit for Builders & Developers Eases at the End of 2021

Thoughts on Housing Supply and Demand With 30-year mortgage rates above 4%

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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