Our local real estate market continues to thrive. It is great for sellers and much better for buyers. Nationally and locally, bidding wars are down.
Quick Market Recap
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Local Market Update:
Last week, we had 115 new listings, vs 85 in 2018, 88 in 2019, 112 in 2020.
Under-contracts were up at 129 (WOW!!). Contrast this with 89 in 2018, 94 in 2019, and 99 in 2020. This is typically a quiet time of year for buyers, so it will be interesting for our Boulder realtors to see what kind of demand we have in mid September, when we typically see a big bump up.
Last week we had 1.29 months supply of inventory, vs .83 MSI in 2018, 1.24 MSI in 2019, and 1.12 MSI in 2020.
It is always interesting to look at price changes, which are a coincident indicator of seller confidence. Last week, our market had 33 price changes (which 97% of the time are a price reduction). This is in contrast with 76 in 2018, 98 in 2019, and 56 in 2020.
Checking in on our year-to-date under-contracts: we’re currently at 3442. This is considerably more than 3220 in 2018, 3183 in 2019, and 2064 in 2020. With this strong under-contract rate, price changes remain lower than we’ve seen in the past 3 years.
Activity By Price Band:
There is a great opportunity in the $2.5mm+ market right now, buyers have been quiet here for a good month. We will keep watching this to see if this is a new trend, but more likely people in this category have been on vacation; it is typical for this price band to see an increase in buyer activity in mid-September.
On the other hand, $2-2.5mm has been quite active for the past couple of weeks, so inventory there may be getting thin.
Also, the $0-500k price band has been very active in the past two weeks, as students have been getting squared away for the new year.
Food Security Project Update
One week ago, the Burgess Group of Boulder realtors gathered our friends, clients, and members of the media to celebrate what has been one of the most fulfilling projects of our careers.
What started as a vision to help our community during Covid has grown into something so much more…
Our partnership with the owners of this listing, The McKenzies, Community Food Share, Boundless Landscapes, and so many more has helped fresh, locally grown produce reach tens of thousands of community members in Boulder and Broomfield Counties.
As of today our #foodsecurityproject has created…
– Over $9,000 in monetary donations to Community Food Share
– 1,928 pounds of fresh produce
– Nearly 28,000 meals to the community
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…and we’re still going!
Autumn starts are growing in the greenhouse and we’re racing against the first frost to donate more food!
Thank you to everyone who has supported us and shared our project.
Onward!
Love,
Catherine & Andy
NATIONAL NEWS: Homebuyer Bidding-War Rate Drops to Lowest Level Since January 2021
Nationally, 60% of offers written in July faced competition, down from 67% in June. Competition is still more intense than it was a year ago.
July’s slowdown comes amid a broader cooling in the housing market, which is being driven by a national increase in supply.
A migration drop-off migration from major cities including San Francisco may also be contributing to easing competition, especially in markets like Sacramento.
In July, 60.1% of offers faced competition, down from a revised rate of 66.5% in June and a pandemic peak of 74.1% in April.
Nationally, while July’s bidding-war rate was the lowest since January, it was still higher than the 57.9% bidding-war rate we saw in July 2020, when the housing market was recovering following a shutdown caused by pandemic restrictions.
Locally and anecdotally, Boulder real estate agents have been noticing fewer competitive offer scenarios than we were seeing in the spring. When we do have competitive offers, there are frequently two or three, vs the 5-10 that we were often seeing in spring 2021.
This may seem curious, given our extremely strong y-t-d under-contract rate. That said, our Month’s Supply of Inventory is doing pretty well; we have typically been within the historic normal range of the past three years throughout this year. If we had even more limited supply with such strong demand, we would see more bidding wars and outrageous price acceleration.
As previously noted, we’ve seen price acceleration in our marketplace this year, but it has not been on the scale of many other parts of the country, due to our supply hovering around the local normal.
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