Weekly Market Update, Real Estate Statistics & National News – December 21, 2023

LOCAL MARKET TAKEAWAYS

According to Boulder realtors, market activity remains active across all price segments, despite prevailing low inventory levels. A decrease in interest rates has led buyers to track fluctuations and seize opportunities to secure favorable rates closely. Cash purchasers maintain a formidable stance in the present market scenario.

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Local Market Nitty Gritty – Boulder County

Boulder County realtors report on 33 new listings coming to the market last week, as compared to 53 in 2018, 50 in 2019, 61 in 2020, 42 in 2021, and 31 in 2022. Last week's new inventory was notably lower than what we saw in all years except 2022.  We are ending 2023 with low inventory.

Examining the year-to-date under-contract data underscores the slower dynamics in this year's market. Currently, there have been 3,418 year-to-date (YTD) under-contracts. To put this in perspective, the YTD under-contract count in 2018 was 4,102; in 2019, it was 4,260; 2020 saw 4,561; 2021 reached 4,751; and in 2022, the YTD sales were at 3,645.

Declining mortgage rates are injecting fresh vitality into the housing market, propelling listings, pending sales, and price growth to their highest levels in approximately a year.

Increasingly, homes are changing ownership as mortgage rates decline and buyers and sellers find common ground on pricing. However, the highest recorded rate of deals falling through is attributed to persistent economic uncertainty, and certain metropolitan areas are still witnessing declines in property values.

Compared to a year earlier, there was a modest 0.1% increase, a small but noteworthy gain after a year and a half of stagnation. Active listings, representing the overall supply of homes for sale, experienced a significant 3.9% month-over-month expansion—the most significant since July 2022—although they were down by 7.9% from the previous year.

Sales are on the rise for another reason: buyers and sellers are now operating within the same reality. A year ago, sellers struggled to comprehend why their homes weren't fetching above-asking prices, akin to their neighbor's experience during the homebuying boom amid the pandemic. Presently, sellers have come to realize that pricing their homes realistically is essential for a successful sale. In some instances, offering concessions to buyers, such as assistance with closing costs or mortgage-rate buydowns, has become a necessary strategy.

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