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

 

 

LOCAL MARKET TAKEAWAYS

The market is active across all segments despite mostly low inventory. Sellers can find strong opportunities in this environment. Interest rates have come down; buyers, monitor fluctuating interest rates closely and secure a favorable rate when available. Cash buyers hold a strong position.

Local Market Nitty Gritty – Boulder County

 

Boulder real estate agents reported 51 new listings coming to market last week, vs 49 in 2018, 67 in 2019, 79 in 2020, 54 in 2021, and 37 in 2022.

 

Over the last four weeks, we’ve observed weekly price reductions of 69, 56, 79, and 82, in line with the usual seasonal trend. This is not the massive rise in price reductions Boulder real estate agents saw at this time in 2022. It’s common for numerous sellers to reduce their listed prices before Thanksgiving or Christmas to incentivize prospective buyers to purchase.

Growing demand and increasing home listings are creating a cyclical dynamic for buyers and sellers.

 

Mortgage-purchase applications have surged, reaching a five-week high with a 3% increase in the past week. Despite a year-over-year 8% decline in pending home sales, this is one of the smallest drops since April 2022.

 

The recent decline in mortgage rates from the recent peak of 8% to around 7.4% has prompted more buyers to enter the market.

 

A positive inflation report is contributing to the decline in mortgage rates. The easing of inflation, as indicated by the recent CPI report, suggests that the Federal Reserve is unlikely to raise interest rates this year and may even consider rate cuts sooner than anticipated. (See inflation-related links below.)

 

Sellers are also becoming more active, with new home listings up by 3% compared to the previous year. This marks the largest increase in two years, and the total number of homes for sale is nearing its highest level since the beginning of the year.

 

Various factors are motivating homeowners to list their properties, including the growing demand from buyers, concerns about potential declines in home prices, and a realization that waiting may not result in lower mortgage rates similar to those seen during the pandemic.

Fed’s Susan Collins says more rate hikes can’t be taken off the table yet

Fed’s Daly says it makes sense to wait on interest-rate policy given all the uncertainty