In the past two weeks, needed inventory came to market; as a result, under-contracts increased. Nationally, homeowners are hanging on to their homes for an average of 12.3 years.
LOCAL MARKET TAKE-AWAYS
Cash buyers and savvy loan buyers have recognized right now as a strong buy opportunity with lower competition and softer prices. A historically normal amount of inventory came to market last week, so there is more to choose from. Our under-contract and sell-through numbers from the past two weeks reflect that buyers are still buying in all price categories.
Price changes continue to hold steady at a fairly low rate, showing sellers have confidence in the current market. Inventory continues to be at historic lows; our under-contract numbers show that sales are indeed happening. In this market, preparing your home correctly and pricing according to the condition of the home are critical for success, so call our Compass Boulder realtor team early to make good prep decisions. Prepare your home to be the one in its category that buyers want to buy.
Local Market Nitty Gritty – Boulder County
Boulder real estate agents reported 82 new listings coming to market last week, vs 66 in 2018, 87 in 2019, 62 in 2020, 73 in 2021 and 67 in 2022. So, a good amount of new inventory came to market last week vis a vis the last 5 years.
63 properties went under contract, in comparison with 65 in 2018, 90 in 2019, 79 in 2020, 91 in 2021, and 64 in 2022. This is the highest number of under-contracts in 2023, with mostly week-over-week increases.
Overall, Boulder County realtors report that inventory is still considerably low.
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
Again, in the past two weeks buyers have been active in all price ranges of our market. Last week saw a lot of entry-level market activity, with a 300% sell-through rate.
Price changes were slightly down week-over-week at 36. In the weeks since January 1st, we’ve had 15, 32, 25, 26, 39, 25 ,38. So, price changes are holding steady, indicating sellers are still confident about the market. Historically, March, April and May bring more buyers than any other months in the Boulder market. Also, historically interest rate changes have not impeded buyers from buying, so hopefully we’ll see this again this year. The Burgess Group | Compass Boulder realtors here will keep watching the price change numbers to monitor seller confidence.
National Market Take-Aways
Exploring Inventory: U.S. Homeowners Typically Sell Every 12 Years, Down From 2020 Pinnacle
National Market Nitty Gritty
Why does inventory continue to be low throughout the country?
Due to all the unknowns of the pandemic, many homeowners refrained from selling in 2020; that year, the average duration holding a property was 13.4 years. In comparison, in 2005, the average home ownership tenure was 6.5 years.
In the past two decades, homeowners have held their properties for nearly double the amount typical previously. This has decreased the amount of sale inventory.
More than 1/3 of Boomers age 65 and older have held their properties for more than 33 years. On the opposite end of the trend, millennial homeowners own for an average of 3 years or less.
Property tax laws also impact how frequently people move, so trends can be different from state to state. This year, the average U.S. homeowner has lived in their home for 12.3 years.
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