Our Boulder County real estate market is continuing to climb higher. We’re seeing some local price gains, as there is less inventory than buyers. National data points us toward a potential decrease in overall buyer demand.
Aggregate Boulder County Market
2/14 – 2/21, 2021
Do we wish we had more inventory? Yes. Last week we had 1.07 months of inventory, with a balanced market at 5-6 months.However, take a peek at the chart to the left. Notice how 2021 and 2019 still a fair bit alike? Not exactly the same, but definite similarities.
Year-over-year, two pairings of data show comparative similarities, 2018 / 2020 and 2019 / 2021.
This consistency should serve to strengthen buyer sentiment.Buyers, hold steady. It is possible to get under contract right now. Over the weekend we had two buyers with loans beat out multiple offers with cash. It is all about writing the contract that speaks best to the seller’s needs.
How Is The Local Market
By Price Band?
We’re continuing to see healthy activity in all price bands. $1-1.5mm and $2-2.5mm price bands had less buyer activity last week, so there is a little more inventory in both of those categories right now.
<- Data nerds, click here
National Real Estate Data
The local numbers don’t shed a light on the appreciation happening right now.
The Case Schiller Home Price Index just reported that nationally home prices were 10% higher in January 2021 than they were in January 2020.
Record-low mortgage rates were a crucial driver in last year’s exuberant real estate recovery. However, the increase in demand created heavy competition and has driven home prices to striking highs. Mortgage rates may no longer be enough to subsidize demand, as affordability challenges buyers.
Demand may decelerate in the middle of the year, as increasing prices and interest rates create a double whammy that knocks down purchasing power.
In some parts of the country, new homes will come to market toward the end of the year, easing the supply shortage to a degree.
Relative to Boulder and Boulder County, we may see some increase in new home sales, but in general our area doesn’t have much new construction, so inventory gains may be minimal.
Unless the national migration trend reverses itself, we can expect buyer demand to outstrip supply in the coming months and possibly years.
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Boulder County COVID Testing &
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Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is 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 solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.