Weekly Market Update, Real Estate Statistics & National News – January 24, 2024

LOCAL MARKET TAKEAWAYS

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

Last week, 59 new listings came to the market compared to 64 in 2018, 58 in 2019, 74 in 2020, 48 in 2021, 58 in 2022, and 34 in 2023, in alignment with these years’ overall trends.

Overall, inventory is still quite low. Sellers, keep in mind that this low inventory is accompanied by lower buyer demand, so while it may technically be a cumulative seller’s market, sellers need to behave collaboratively and realistically to sell their homes. Even in the occasional multiple-offer scenario, Boulder realtors recommend that sellers need to cooperate to get to closing.

The first and second weeks of the year saw 44 and 50 price reductions.  The first and second weeks of the year saw 44 and 50 price reductions. According to Boulder County realtors, this is a clip up from December, but fairly in alignment with new year trending, see the chart below.

The Lock-in Effect: Currently, 89% of individuals with mortgages possess an interest rate below 6%, marking a decrease from the previous record of 93% in 2022.

A majority of homeowners with mortgages currently enjoy rates below the prevailing average, prompting many to remain in their homes.

However, the proportion of homeowners with comparatively low rates has decreased from its peak. Some have abandoned the wait for a market downturn in rates, and those who acquired homes in the past year did so when rates were above 6%.

While staying put may be a viable choice for some, it’s not a realistic long-term solution for everyone. The decrease in the share of homeowners with rates below 6% is partly attributed to some homeowners deciding to relinquish their low rates in order to move. Factors such as major life events, including divorce, compel some to sell, while others put their homes on the market to relocate to a different house or city.

Here’s the full breakdown of where today’s homeowners fall on the mortgage-rate spectrum:

Below 6%: 88.5% of mortgaged U.S. homeowners have a rate below 6%, down from a record 92.8% in the second quarter of 2022.

Below 5%: 78.7% have a rate below 5%, down from a record 85.6% in the first quarter of 2022.

Below 4%: 59.4% have a rate below 4%, down from a record 65.3% in the first quarter of 2022.

Below 3%: 22.6% have a rate below 3%, down from a record 24.6% in the first quarter of 2022.

Builder Sentiment Surges on Falling Interest Rates

Housing Starts Decreased to 1.460 million Annual Rate in December

Weekly jobless claims post lowest reading since September 2022