Weekly Market Update, Real Estate Statistics & National News – May 26, 2023

LOCAL MARKET TAKEAWAYS

 

BUYERS

 

 

 

Local Market Nitty Gritty – Boulder County

 

86 properties went under contract last week, compared with 141 in 2018, 117 in 2019, 133 in 2020, 120 in 2021, and 116 in 2022. The current figure is significantly lower compared to our stronger previous years. A limited inventory influenced last year’s numbers, while this year’s figure is affected by both limited inventory and higher interest rates. Buyers should take note that this presents a favorable opportunity to “buy low” with (likely) reduced competition, potentially softer prices, and the possibility of seller concessions.

 

Total year-to-date purchases show the difference in this year’s market: we’ve had 1333 year-to-date sales. 2018 YTD sales = 1655; 2019 YDT sales = 1719; 2020 YTD sales = 1456; 2021 YTD sales = 1784; 2022 YTD sales = 1499.  Overall, the 2023 low sales will equate with some sellers being quite motivated and obviously less competition.

 

Remember that 2020, 2021, and 2022 were exceptional years and should be considered outliers. To gauge our real estate market’s historical norms, refer to 2018 and 2019.

Price reductions continue to vacillate week-over-week. The number is continuing to inch up, which is normal as a year progresses.

When sellers enter the market, they set their desired price for their homes. However, if the majority of buyers searching for a specific type of home do not perceive the corresponding value in the listed price, the property is unlikely to sell. In such cases, sellers must either enhance the condition of the property or reduce the price to sell.

 

It is worth noting that if the anticipated pent-up demand materializes in the third and fourth quarters, we may see a downward trend in price reductions during the latter half of the year. Typically the end of the year sees an increase in price reductions.

 

 

National Market Takeaways

 

The Impact of Location on Home Prices: A Decade of Divergence

 

The disparity between the Bay Area and South Florida in terms of housing prices has reached a near 30-year high.

 

The dynamic nature of the housing market during the pandemic made price growth trends more localized than they have been since 2009.

 

While the variation has decreased since then, price growth continues to fluctuate significantly compared to pre-pandemic times. Some regions of the country are experiencing a rapid cooldown from the homebuying boom, while others maintain a steady market.