The Headlines: Locally and nationally, inventory is rising and price reductions are rising. Buyers have opportunities that they didn’t in the recent past!
Local Market Update – Boulder County
Our Boulder realtor team is reporting on 158 new listings coming to market last week, vs 117 in 2018, 136 in 2019, 129 in 2020, and 171 in 2021.
103 properties went under contract, in contrast with 93 in 2018, 99 in 2019, 133 in 2020, and 120 in 2021.
We had 1.35 months supply of inventory, in comparison with 2018’s 1.52, 2019’s 1.64, 2020’s 1.40, and 2021’s 1.80 MSI.
Year-to-date under-contracts for Boulder real estate agents remain lower, with 1904 thus far in 2022. At this time in 2018, there were 2143 under-contracts; 2019 had 2249; 2020 had 2039; and 2021 had 2259 under-contracts. So, our total this year continues to be lower than the number we had in 2020, having had 2 months of shutdown under our belts. While previously this was a result of our lack of inventory, it is now a combination of reduced buyer demand with low but rising inventory.
Activity By Price Band – Boulder County
To note, the sell-through rate for the 0-$500k market was 150%, indicating more under-contracts than new listings. All other price bands had more new listings than under-contracts, resulting in rising inventory.
Of huge importance for Boulder County realtors, the $3mm+ City of Boulder market has seen a significant rise in inventory, see the chart below. To recap, in 2021 we had 7 $3+mm sales per month, with an average 1.7 months supply of inventory. In 2022, this market has had 7 3+mm sales per month, with an average of 7.8 months supply of inventory. A balanced market is at around 5-6 months supply of inventory, so the City of Boulder luxury market has entered a buyer’s market. (If you need this info broken down further by more specific price bands or need Boulder County, contact the Boulder realtors at Burgess Group | Compass)
Boulder County saw an increase in price changes again last week, up to 88.
NATIONALLY IN BROAD STROKES
The government has regularly infused the economy with capital during periods of economic stress (wars, stock market bubbles, energy crises, pandemics, etc). When that government spending tapers off, gross domestic product (GDP) can dip for two+ successive quarters, constituting a recession. Here is a simple recap of US recessions since WWII. Although our news seems to be pointing toward a recession, hopefully, this history review will remind us that this too will pass. Boulder County real estate has historically done extremely well through recessions relative to the rest of the country.
SOME NATIONAL SPECIFICS
The Fed recently increased rates 75 basis points; Fed chair Jerome Powell says that another .75% increase may be coming in July.
Active listings are on the rise.
Home price drops are on the rise.
Rising mortgage rates and home prices are putting downward pressure on buyer demand.
As a result, sellers are less likely to receive multiple offers—but they’ll also face less competition when they buy their next home.
Click anywhere below to check out Burgess Group | Compass Boulder realtor team’s current exclusive listings.