Inventory ticked up again last week, as did under-contracts. Nationally, getting kitchens and baths in top condition for sale is more important than ever.
Aggregate Boulder County Market
5/16 – 5/23, 2021
How is The Local Market as an Aggregate?
As has been the case for a good year now, inventory continues to be of utmost concern.
2021 inventory popped up again week-over-week, from 117 to 137 units.
In 2018 and 2019, we saw the beginning of the yearly summer declines, with week-over-week reductions in new listings from 145 to 108 and 171 to 86 units respectively.
In 2020, things were ramping up after the shut down, with a jump from 119 to 159 units w-o-w.
As we have surplus buyers circulating in the market right now, the selling season may extend through the summer, without a noticeable slowdown.
2021 under-contracts popped back up w-o-w, to 120. Our total y-t-d was 1,784, vs 1771 in 2018, 1,839 in 2019, and 1,534 in 2020.
Our month’s supply of inventory last week was the highest that we’ve seen in in 6 weeks, at 1.54 months supply of inventory (MSI). For comparison, in 2018 there was 1.44 MSI, in 2019 there was .97 MSI, and in 2020 there was 3.18 MSI.
*Data nerds, click the chart
How Is The Local Market
There was a lot of activity in the $2.5mm+ price band last week, with a 250% sell-through rate. $1-1.5mm had a 175% sell-through rate. The other bands were quiet, so there should be a little more inventory there this week.
*Data nerds, click the chart
National Real Estate Trends
The New Importance of Renovation
Value of a Remodeled Kitchen
These days buyers are less inclined to renovate: many simply cannot afford to do so as this requires cash after closing.
Many want to tie their entire purchase into a mortgage to capitalize on low rates.
Most buyers automatically assume a tired/dated kitchen or bathroom means the entire home requires a gut renovation when often this is not the case.
While some sources state that you only get a little over 50% of the value of a kitchen renovation, this seems low relative to what we experience in the marketplace. This rate may be true in an older home where EVERYTHING is due for a renovation.
However, in a home that was renovated 7-12 years ago and is basically in outstanding condition, often messages its age/wear-and-tear via its kitchen and bathrooms.
Classic tastes are often very difficult to date especially if they are in mint condition. The kitchen/bathrooms may distort perceptions.
In many ultra-luxury homes, owners and developers installed highly fashionable kitchens and bathrooms…..and those can tend to date themselves a lot quicker, not unlike fashion where classics stand the test of time compared to ultra-high-fashion that often loses its luster quicker or because of its distinctive look is easier to date.
I recently visited a 12-year-old home with a brand new kitchen and bathrooms. Not much else had been changed besides regular maintenance and freshly painted walls. It showed as if it was brand new.
Whenever I walk a home that has a dated kitchen and bathrooms, many automatically assume EVERYTHING is dated and requires renovating.There is nothing newsworthy about the value of renovating kitchens and bathrooms, but these days it may be even more important.
The buyer who sees zero requirement for ‘work’ will pay more……even if they plan on doing their own renovation work based on tastes. The buyer that buys a home that obviously requires tons of work is looking for a dramatically lower price.
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compiled from sources deemed reliable but is subject to errors, omissions, changes in price,
condition, sale, or withdrawal without notice. No statement is made as to accuracy of any
description. All measurements and square footages are approximate. This is not intended to
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