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

By Catherine Blog, Boulder Real Estate News December 21, 2023

Friends,

Locally, market activity persists in all price points amid low inventory, driven by falling interest rates and a strong presence of cash buyers.

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

Both locally and nationally, sellers are more realistic about selling prices than they were a year ago. Broadly speaking, they are noting market feedback and changing price and/or condition accordingly.

Click anywhere below to check out Burgess Group | Compass Boulder realtor team’s current exclusive listings.

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.

Looking for National News? Check out our blog here.

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.

In terms of properties going under contract, there were 52 last week, contrasting with 59 in 2018, 51 in 2019, 65 in 2020, 66 in 2021, and 45 in 2022. Lower interest rates increased buyer activity

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.

We are ending the year with under-contracts around 29% less than the 2021 market peak, around 7% lower than the previous market low in 2022, and around 19% below the pre-pandemic average of 2018 and 2019.

Please remember that 2020, 2021, and 2022 were outlier years.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

There has been robust activity in all price bands in the past four weeks. Various bands have performed stronger or weaker week by week, but all price points have had strong sell-through rates in the past month. Activity across all price bands is an indicator of overall market health.

PRICE REDUCTIONS

Over the last four weeks, Burgess Group Boulder real estate agents have observed weekly price reductions of 28, 58, 56, and 33, slightly higher than last year. As you can see below, it is common for price changes to reduce at this time of year, and many homes are actually removed from the market for the holidays. The overall inventory for Boulder County right now is at .94 months' supply of inventory – 0.34 higher than at the time of our last newsletter.

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.

In November, both new listings and pending home sales reached their peak in nearly a year, driven by a convergence of buyer and seller impatience on the sidelines and a decrease in mortgage rates. Home prices surged, marking the most substantial year-over-year increase since late 2022.

New listings saw a 1.3% month-over-month rise, reaching the highest point since October 2022 on a seasonally adjusted basis.

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.

Below you'll find the types of homes our buyers are currently seeking. Do you know someone who is on the fence about selling their home? Perhaps you've been considering it?

Please let the Compass Boulder realtors at Burgess Group know if you or anyone you know has a home that might fit. We'd love to help!

Existing Home Sales Unexpectedly Rise Amid High Mortgage Rates

Consumer confidence snaps back at year-end

Major central banks diverge on when the first rate cuts will come

Mortgage rates are dropping. Here's what to expect in 2024 if you want to buy a home, experts say

Exclusive-Fed's Bostic Sees Two Rate Cuts, Soft Landing Next Year

Fed's dovish pivot is big gamble that's likely fail, says former top New York Fed official

One Of The Biggest 2-Day Drops in Rates in Decades

[email protected] | 303.301.4718 | burgessgrouprealty.com

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