Boulder Real Estate News, Analysis & Trends - Burgess Group | Compass

WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

SEPTEMBER 15, 2023

Blog, Boulder, Boulder Real Estate News, National Trends, Newsletter, Real Estate
- September 15, 2023

Friends,

This year, our under-contract rate is about 20% below our pre-pandemic average, see below. This can benefit both buyers (low competition) and sellers (low inventory).

Nationally, in some markets, properties are selling for less than they sold for the last time around; if you're looking to invest, check those markets.

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

LOCAL MARKET TAKEAWAYS

Inventory and under-contract rates continue to be low this year. Price reductions are happening at a seasonally appropriate rate, so there doesn't appear to be a credible threat of market decline. All price categories are seeing buyer activity.

At some point, the buyers sitting on the sidelines will return to the market, which will likely create a noticeable competition bump. At that point, the sellers sitting on the sidelines may increase inventory substantially.

If you’d like to be some of the only game in town on either the buy or sell side, the Compass Boulder realtor team at Burgess Group recommends that now is the time to consider moving forward.

Local Market Nitty Gritty - Boulder County

Boulder real estate agents report on 130 new listings coming to market last week, vs 111 in 2018, 120 in 2019, 109 in 2020, 129 in 2021, and 89 in 2022. This may reflect sellers’ understanding that there is currently a shortage of inventory. We are at the start of the historic secondary selling season.

57 properties went under contract last week, compared with 65 in 2018, 78 in 2019, 120 in 2020, 90 in 2021, and 51 in 2022. Our 2023 number is smaller than all recent years, with the exception of the rapidly contracting 2022 fall market. In other words, buyers will be valued by sellers right now. It is a good time to be a buyer.

The year-to-date purchase data reveals the changing dynamics in this year's market. As of now, there have been 2592 year-to-date (YTD) under-contracts (UC). Comparing this to previous years, in 2018, the YTD UC count was 3129, in 2019 it was 3261, in 2020 it reached 3361, in 2021 the YTD sales hit 3631, and in 2022 the YTD sales were at 2881.

Consequently, this year's under-contracts are 29% below the peak market activity observed in 2021 and 10% lower than the market's lowest point in 2022. When we average the two non-pandemic years, 2018 and 2019, we get an annual average of 3195 UC per year. Comparing this to the current under-contract rate, it indicates that today's under-contract rate is 19% below what would be considered the 'average historic normal.'

2020, 2021, and 2022 were outlier years. To gauge our real estate market's historical norms, refer to 2018 and 2019.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

Over the last two weeks, the Boulder realtor team at Burgess Group reports activity in all price bands. The sell-through rate for many months has favored buyers in the $2.5mm+ market, indicating a lot of inventory and probably some motivated sellers. During the summer and September, the $1-1.5mm and $1.5-2mm markets sell-through rates have been fairly strong relative to the rest of the above-entry-level market; these segments will feel much more picked-over than the luxury market. If you have something to sell in these ranges, this may be a good time; contact our Boulder real estate agents to discuss in detail.

PRICE REDUCTIONS

Over the past four weeks, Boulder County realtors have observed weekly price reductions of 88, 65, 93, and 82 in Boulder County. At this time of year, sellers frequently opt to lower their prices, especially if their previous attempts to sell have been less successful. These price reductions adjustments align with the seasonal norm. It's common for many sellers to reassess their pricing strategies around Labor Day, aiming to optimize their sales performance during the secondary selling season that typically kicks off shortly after the holiday.

1 in 8 San Francisco Home Sellers Is Losing Money—the Highest Share in the Nation

Approximately 12.3% of homes sold in San Francisco in the three months ending July 31 were acquired for a price lower than the seller's initial purchase, which marks a significant increase from the 5% recorded a year earlier.

This percentage is notably higher than in any other major U.S. metropolitan area and is four times greater than the national rate of 3%.

Following San Francisco, other cities with notable percentages of homes sold below the purchase price were Detroit (6.9%), Chicago (6.5%), New York (5.9%), and Cleveland (5.8%).

In the case of San Francisco, the average homeowner who experienced a loss sold their property for approximately $100,000 less than its original purchase price, tying with New York for the largest median loss in terms of dollars.

Nationally, the typical homeowner who sold their property for less than the purchase price incurred an average loss of $35,538.

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!

Fed Is Done Raising Rates and Will Cut Them in 2024, Economists Say

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

SEPTEMBER 01, 2023

Uncategorized
- September 01, 2023

Friends,

Locally, limited inventory and higher interest rates is creating a compelling opportunity to sell for turn-key properties; fixers need a carefully crafted selling strategy to be successful in this market. Buyers have less competition and likely more traction negotiating than in our normal market.

Nationally, mortgage applications have increased after a 5-week decline.

Wurst Party Ever 2023

Our deepest THANK YOU to everyone who attended and / or donated to our Wurst Party Ever Fundraiser.

Every year, our Boulder realtor team is totally blown away by the generosity of our family, friends, clients and partners.

With Catherine and Andy's matching donation, we raised nearly $10,000 for the Museum of Boulder this year!

If you missed the party and feel called to support the MOB's mission to encourage community engagement while showcasing untold and underrepresented community stories -- click here and choose "Burgess 2023 Fundraiser" as your reason for giving.

Looking for all the HILARIOUS photos from the photo booth? Click here!

We'll see you next year! OOMPAH!

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

LOCAL MARKET TAKEAWAYS

BUYERS AND SELLERS

It has been a slow year for buyer activity and a low year for inventory, leading to advantages for both buyers and sellers.

Buyers, sellers are happy to have qualified, ready-to-purchase buyers; shopping now will give you less competition and more seller collaboration now than when the pent-up buyer demand inevitably returns to the market.

Sellers, buyers are sitting on the sidelines and monitoring the market for terrific properties; in many categories, you can come to market and one of the few interesting-looking houses.

Local Market Nitty Gritty - Boulder County

Boulder County realtors reported 95 new listings coming to market last week, vs 80 in 2018, 111 in 2019, 95 in 2020, 115 in 2021, and 78 in 2022, considerably lower than recent pandemic highs. Please check the chart below to see the cumulative Boulder County inventory. Buyers still feel there is a shortage in most categories, with luxury being the outlier.

73 properties went under contract last week, compared with 87 in 2018, 87 in 2019, 101 in 2020, 129 in 2021, and 90 in 2022. This is a relatively small amount of buyer activity, so buyers take notice that most sellers will be very motivated to interact with you.

Total year-to-date purchases show the difference in this year's market: there have been 2469

year-to-date (YTD) under-contracts (UC). 2018 YTD UC = 2975; 2019 YDT UC = 3089; 2020 YTD UC = 3142; 2021 YTD sales = 3442; 2022 YTD sales = 2733.

So, this year our under-contracts are 29% below the market high of 2021, and 10% below the market low of 2022. Our two non-pandemic years average at 3032 UC per year; today's under-contract rate is 19% below the 'average historic normal'.

2020, 2021, and 2022 were outlier years. To gauge our real estate market's historical norms, refer to 2018 and 2019.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

The Compass Boulder real estate agents at Burgess Group report that there has been good activity in all price bands over the last month. To note, the big activity in the entry-level market appears to have tapered off, with the advent of school starting. The $2.5mm+ market has had a low sell-through rate through most of the summer, which correlates with increasing inventory. Luxury buyers have lots to choose from and possibly very motivated sellers to negotiate with.

PRICE REDUCTIONS

Price changes have been 76, 80, 80, and 93 in the last four weeks. This is the time of year when sellers often decrease prices if they've not had success selling. These rates are seasonally appropriate. Many sellers reevaluate pricing just before Labor Day, as our secondary selling season starts just after Labor Day.

Following a consecutive five-week decline, there was a slight resurgence in mortgage applications in the past week, according to the Mortgage Bankers Association (MBA).

The MBA reported that the Market Composite Index, which gauges the volume of mortgage loan applications and is adjusted for seasonal variations, saw a 2.3 percent uptick during the week ending on August 25. Prior to the adjustment, the increase was 1 percent.

Comparatively, the Refinance Index experienced a 3 percent increase weekly, yet it still lags behind August 2022 levels by 28 percent. The portion of mortgage activity dedicated to refinancing rose to 30.1 percent of total applications, up from 29.5 percent the previous week. This marked the most substantial share for refinancing since mid-February.

Joel Kan, the MBA's Vice President and Deputy Chief Economist, noted, “Mortgage rates remained relatively stable in the previous week, with the 30-year fixed rate holding at 7.31 percent – the highest since December 2000. Although Treasury yields reached a peak early in the week and subsequently decreased by week's end, this movement might have prompted some activity."

Kan continued, “For the first time in five weeks, mortgage applications for both home purchases and refinances experienced an increase, albeit remaining at subdued levels. Despite the rise in purchase applications, they remained 27 percent lower than the previous year. Elevated mortgage rates and a constrained housing inventory persistently influence home buying activity."

Kan further added, “Despite the upturn seen last week, the refinance market continues to languish. The increase was driven primarily by a notable 7.9 percent surge in conventional refinances. However, government refinance applications plummeted by over 10 percent in the same period."

Highlights from MBA’s Weekly Mortgage Applications Survey:

*Loan sizes increased by about $5,000 to an average of $367,200 while purchase loan sizes grew from $407,700 to $413,100.

*The FHA share of total applications decreased to 13.2 percent from 14.3 percent and the VA share was unchanged at 11.6 percent.

*USDA applications accounted for 0.4 percent of the total, down from 0.5 percent the prior week.

*The rate for conforming 30-year fixed-rate mortgages (FRM) remained at an average of 7.31 percent and points eased back to 0.73 from 0.78.

*The jumbo 30-year FRM had a rate of 7.28 percent, 1 basis point higher than the prior week.

*Points fell to 0.66 from 0.84.

FHA-backed 30-year FRM had an average rate of 7.10 percent with 1.09 point. The prior week the rate was 7.09 percent with 1.20 points.

Fifteen-year FRM rates averaged 6.72 percent, unchanged from the prior week.

*Points increased to 1.11 from 1.06.

The average rate for 5/1 adjustable-rate mortgages (ARMs) dipped 2 basis points to 6.48 percent, but points jumped to 1.20 from 1.03.

*The ARM share of activity was 7.5 percent compared to 7.6 percent the previous week.

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!

Mortgage Applications Rise After Five-Week Retreat

NAR: Pending Home Sales Up 0.9% in July; Down 14.0% Year-over-year

Job Openings Data Reveal Labor Market Cooling

Comments on June Case-Shiller and FHFA House Prices

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

JULY 28, 2023

Uncategorized
- June 28, 2023

Subject:
"Rare Market Conditions: Low Under-Contract Rate Opens Golden Opportunity for Buyers and Sellers!

Friends,

Locally, low Inventory is creating high potential for turn-key properties and non-turnkey properties with a well-thought-out selling strategy. There are extraordinary buying opportunities in the $2.5mm market and significantly less competition throughout the market currently.

Nationally, the FHFA reports that there was a 2.8 percent increase in house prices from May 2022 to May 2023 (mostly due to a lack of inventory); however, the Mountain Region remains down 2.7% year-over-year (YoY).

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

LOCAL MARKET TAKEAWAYS

BUYERS AND SELLERS

Our market's under-contract rate year-to-date is

currently running at about 6-21% of the transaction volume that we've seen in the past 5 years. This low transaction volume creates an impressive opportunity for buyers and sellers who recognize this unusual time in our market.

Inventory remains low. It can be a strong time to list your turn-key property, depending on your price point. If your property isn't turn-key, your sell strategy has to be carefully plotted for success. Call the Compass Boulder real estate agents at Burgess Group early, before you start your prep work.

If you're in the market for a $2.5+mm property, partner with a Boulder realtor, this is an extraordinary buy opportunity! The other parts of the market can be buyer friendly as well, with far less competition than we've seen in the last 15 years. The other parts of the market can be buyer friendly as well, with far less competition than we've seen in the last 15 years.

Local Market Nitty Gritty - Boulder County

Boulder County realtors reported 101 new listings coming to market last week, vs 119 in 2018, 147 in 2019, 127 in 2020, 114 in 2021, and 133 in 2022, so still a chunk lower than recent years. Sellers, take note.

92 properties went under contract last week, compared with 95 in 2018, 89 in 2019, 125 in 2020, 99 in 2021, and 89 in 2022. This number is fairly in alignment with the non-pandemic numbers. According to our Compass Boulder realtor team here at Burgess Group, when we have a normal number of under-contracts and a low amount of inventory, it can be a good time for sellers to come to market.

Total year-to-date purchases show the difference in this year's market: there have been 2121

year-to-date (YTD) under-contracts (UC). 2018 YTD UC = 2450; 2019 YDT UC = 2549; 2020 YTD UC = 2444; 2021 YTD sales = 2664; 2022 YTD sales = 2234. So, this year our under-contracts are 21% below the market high of 2021, and 6% below the market low of 2022. Our two non-pandemic years average at 2499 UC per year; today's under-contract rate is 16% below the 'average historic normal'.

So, relatively speaking, it has been a slow year for real estate, which of course creates opportunities for both buyers and sellers.

2020, 2021, and 2022 were outlier years. To gauge our real estate market's historical norms, refer to 2018 and 2019.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

While many of previous weeks had lower sell-through rates, the overall market sell-through rate last week was a quite balanced 91%. Inventory is stretched the thinnest in the entry-level market, where sell-through rates have been the strongest this year. Again, Boulder real estate agents saw a massive number of entry-level (likely kiddie condo) sales with a 333% sell-through rate. In contrast, and reflecting the buyer's market in luxury, since the middle of May, the $2.5mm+ weekly sell-through rates have been 12.5%, 54.5%, 36.4%, 28.6%, 50%, 37.5%, 20%, 33% and 22%. In other words, it is a great time to be a $2.5mm+ buyer.

PRICE REDUCTIONS

The last two weeks price changes have been hovering in the high 80s. This is the time of year that sellers often decrease price if they've not had success selling. While these rates are not as high as what we were seeing last year, they are among the highest rates in 2023, reflecting that the number of buyers circulating in the marketplace is lower than many sellers were expecting.

National Market Takeaways -

Colorado Property Owners, Read Until the End

According to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index (HPI®) report, U.S. house prices increased by 0.7 percent in May compared to April.

Additionally, there was a 2.8 percent increase in house prices from May 2022 to May 2023.

The 0.7 percent increase reported for April remained unchanged when revisited.

Dr. Nataliya Polkovnichenko, a Supervisory Economist in FHFA's Division of Research and Statistics, noted that the house prices experienced moderate growth in May, continuing the trend observed in the preceding months.

However, in some regions of the country, house prices were still below the levels seen one year ago (May 2022).

In the Pacific and Mountain regions, prices decreased year-over-year (YoY), while prices increased YoY in all the other regions.

Notably, the year-over-year increase observed in May 2023 was smaller than the YoY increase recorded in May 2022 in all nine regions.

This data indicates that U.S. house prices showed moderate growth in May 2023, with some regional variations in the year-over-year changes. The Mountain Region is still down 2.7% year-over-year (YoY).

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!

Measured Hawkishness: The Fed Hikes in July

Home Prices Fell Year-Over-Year in May

Interest for New Homes Strengthens

Mortgage Rates Fall Moderately After Fed Rate Hike

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

JULY 15, 2023

Blog,
Boulder,
Boulder CO
Boulder Real Estate News
- June 23, 2023

Friends,

BUYERS: While the luxury market remains favorable for buyers, the overall market has displayed stable prices in recent weeks; prices will increase if market activity intensifies.

SELLERS:

With low inventory across many categories, the current market presents a favorable opportunity for sellers to sell during low inventory.

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

LOCAL MARKET TAKEAWAYS

BUYERS

Buyers, it is a strong buyer's market in luxury. In the rest of the market, the sales-to-inventory ratio and prices have been relatively stable over the past few weeks. Should the market experience increased activity, as we're seeing nationally, prices will probably resume their upward trajectory.

SELLERS

Boulder real estate agents report that inventory is still low in most categories, so it can be an excellent time to sell. Mortgage lock rates just went up again. a leading indicator of buyer demand. Buyers are waiting in the wings to pounce on the right property.

If you’re interested in selling, contact the Burgess Group | Compass Boulder realtors at your earliest convenience. You will need a strategy that works well with your home/condition/location to sell well in this market. Our Boulder realtor team will provide valuable insights into the specific features and conditions that home buyers are presently willing to purchase and possibly pay a premium for.

Local Market Nitty Gritty - Boulder County

Boulder County realtors had 130 new listings come to market last week, vs 72 in 2018, 80 in 2019, 120 in 2020, 114 in 2021, and 124 in 2022. This is quite a surge in inventory relative to recent weeks.

64 properties went under contract last week, compared with 103 in 2018, 98 in 2019, 128 in 2020, 75 in 2021, and 63 in 2022. This lower number reflects the extremely low inventory.

Total year-to-date purchases show the difference in this year's market:

We've had 1940 year-to-date sales. 2018 YTD sales = 2355; 2019 YDT sales = 2460; 2020 YTD sales = 2319; 2021 YTD sales = 2565; 2022 YTD sales = 2145. Overall, the 2023 low sales correlate with low inventory and lower demand because of higher interest rates.

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.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

Boulder real estate agents had an overall sell-through rate for the area last week of 49.2%, which indicates that there is a lot more inventory for buyers this week. Inventory is stretched the thinnest in the entry-level market, where sell-through rates have been the strongest this year.

PRICE REDUCTIONS

Again, in the past few weeks, price changes have continued to be seasonally appropriate. To note, they are not low, which would indicate a strong seller's market. As you'll see in our info below about the national market, our local market is not functioning as a strong seller's market. The luxury market continues to function as a strong buyer's market; in the rest of the market, sellers may have a slight advantage.

National Market Takeaways

High Demand and Low Inventory Drive U.S. Housing Market Surge

In a significant turnaround for the real estate market, nationally, the average U.S. home is now selling above its asking price, reaching a sale-to-list price ratio of 100.1% during the four weeks ending July 2.

This marks the first time in nearly a year that homes are fetching more than their initial price.

While the median home-sale price has experienced a slight decrease of just $1,000 (-0.3%) compared to last year's near-record highs, prospective homebuyers are grappling with the challenges posed by stubbornly high prices and mortgage rates hovering around 7%.

One of the primary factors driving this trend is the scarcity of homes for sale. New listings have plummeted by 25% compared to last year, and the total inventory has shrunk by 12% as homeowners choose to hold onto their properties due to favorable mortgage rates.

Despite these hurdles,

current market conditions have intensified competition among buyers in many parts of the country. Almost every home on the market is receiving multiple offers and selling above the asking price. However, due to higher interest rates, bidding wars decrease as prices increase.

In many markets, buyers should explore options slightly below their price range to ensure they can make a compelling offer.

The housing market's surge, driven by high demand and limited supply, presents a challenging landscape for homebuyers. With prices remaining elevated and inventory tight, navigating the market requires strategic planning and acting decisively when opportunities arise.

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!

Mortgage Application Volume Up Slightly During Holiday Week

CPI Eases Further as Housing Inflation Slows

CoreLogic: US Annual Home Price Growth Drops to the Lowest Rate in 11 Years in May

Consumer Credit Growth Slows to 30-Month Low

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

JUNE 23, 2023

Blog,
Boulder Real Estate News
- June 23, 2023

Friends,

BUYERS: The Fed paused interest rate increases but is projecting two more this year, so move forward with any adjustable rate purchases sooner rather than later.

SELLERS:

There is low inventory in most categories, and buyers are active across the board. Our Boulder realtors recommend that you consider offering turn-key properties to attract buyers looking to roll expenses into their mortgage. Contact the Compass Boulder real estate agents at Burgess Group to learn more about features buyers are willing to pay a premium for in the current market.

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

LOCAL MARKET TAKEAWAYS

BUYERS

The number of buyers circulating in the marketplace is lower than Boulder real estate agents have seen in many years, so if you’re able, this is a great time to move forward with very little competition. Depending on the price category and property, buyers may find sellers willing to accept lower asking prices and/or willing to make inspection concessions, particularly on fixers, which are selling slower than turn-key homes.

SELLERS

Inventory levels are currently low in most categories, while buyers are actively purchasing across all categories. It's important to consider that due to the current higher cost of money, many buyers are seeking turnkey properties in order to incorporate all their expenses into their mortgages.

If you’re interested in selling, we encourage you to contact a Burgess Group | Compass Boulder Realtor at your earliest convenience. You will need a strategy that works well with your home/condition/location to sell well in this market. We will provide you with valuable insights into the specific features and conditions that home buyers are presently willing to purchase and possibly pay a premium for.

Local Market Nitty Gritty - Boulder County

Boulder County realtors report on 132 new listings coming to market last week, vs 120 in 2018, 154 in 2019, 120 in 2020, 162 in 2021, and 159 in 2022. Sellers, we have very little inventory coming to market.

85 properties went under contract last week, compared with 111 in 2018, 117 in 2019, 103 in 2020, 131 in 2021, and 104 in 2022. So, this is a significantly lower number of transactions than we usually see at this time of year.

Total year-to-date purchases show the difference in this year's market:

We've had 1,589 year-to-date sales. 2018 YTD sales = 1950; 2019 YDT sales = 2048; 2020 YTD sales = 1791; 2021 YTD sales = 2076; 2022 YTD sales = 1801. Overall, the 2023 low sales correlate with both low inventory and lower demand because of higher interest rates.

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.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

In the last four weeks, fewer buyers have purchased than inventory has come to market, indicating that our inventory (while low) is growing. Very occasionally, the sell-through rate reflects one section of the market in which more properties went under contract than came to market, but there is no trend there. Buyers are buying in all price categories.

PRICE REDUCTIONS

Boulder County realtors are seeing a seasonally appropriate number of price reductions right now, which shows relative health in our lower-volume-than-normal real estate marketplace.

National Market Takeaways

After 10 Federal Funds Rate Hikes, The Fed Holds Steady:

The Federal Reserve has raised interest rates 10 times since March 2022, but last week they decided to pause.

While the full impact of the rate hikes on the economy is yet to be seen, credit has become tighter, which was the intended outcome to slow down borrowing. Inflation is still higher than the desired 2% target, but it has decreased from its recent peak.

The Fed is cautious about the effects of recent bank failures and wants to avoid a recession. The stock market reflects optimism about avoiding a recession.

The Fed suggests there may be two more rate hikes this year, but the duration of the current pause is undecided. Wall Street is speculating that the increases will be in July and September.

The Fed funds rate, set by the Fed, affects short-term loans like credit card debt and adjustable-rate mortgages, while fixed-rate mortgages are linked to the 10-year Treasury yield.

Other factors influencing mortgage rates include supply and demand, inflation, and investor demand for mortgage-backed securities.

To secure the lowest mortgage rate, our Boulder realtor team recommends maintaining good credit, keeping debt low, making a substantial down payment, and comparing offers considering the APR, including fees.

This pause could be a good time to move forward with a loan before rates potentially increase again.

Federal Funds Rate History 1990 - 2023

How the Federal Reserve affects mortgage rates

The Federal Reserve finally hits pause on raising interest rates

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!

Fed holds off on rate hike, but says two more are coming later this year

Double Digit Declines for Single-Family Permits in April 2023 in All Regions

Q2 GDP Tracking: Around 1.5%

Realtor.com Reports Weekly Active Inventory Up 10% YoY; New Listings Down 22% YoY

Fed's Barkin: What's Next For Fed Policy

European Central Bank diverges from Fed, raising rates to highest in 22 years

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

JUNE 9, 2023

Uncategorized
- May 25, 2023

Friends,

BUYERS:

Take advantage of the current market with reduced competition and the potential for lower prices. Mortgage rates are expected to decrease in the near future. Our Boulder realtors recommend acting quickly for a great property before competition increases.

SELLERS:

There is low inventory in most categories, and buyers are active across the board. Consider offering turn-key properties to attract buyers looking to roll expenses into their mortgage. Contact the Boulder real estate agents at Burgess Group | Compass to learn about features buyers are willing to pay a premium for in the current market.

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

LOCAL MARKET TAKEAWAYS

BUYERS

Although rates are around 7%, competition is largely down, which is extremely unusual in this market. Depending on the price category and property, buyers may find sellers willing to accept lower asking prices and/or willing to make inspection concessions. Mortgage rates are projected to come down in H2 2023/H1 2024, bringing buyers back. Your opportunity to get a great property with minimal competition is still available and will not last forever.

SELLERS

Sellers, in most categories, inventory is low. And buyers are buying in all categories.

Please note that because money is more expensive right now, many buyers are looking for turn-key properties, so that they can roll all of their expenses into their mortgage.

If you're wanting to sell in a market with a lot of inventory (luxury right now), get in touch with a Compass Boulder realtor at Burgess Group at your earliest convenience to understand the specific features and conditions that home buyers are currently willing to pay a premium for.

Local Market Nitty Gritty - Boulder County

Boulder County realtors report on 123 new listings coming to market last week, vs 121 in 2018, 142 in 2019, 127 in 2020, 143 in 2021, and 155 in 2022. Our low inflow of inventory continues. Sellers take note.

71 properties went under contract last week, compared with 68 in 2018, 92 in 2019, 133 in 2020, 90 in 2021, and 88 in 2022. The current figure is significantly lower compared to our stronger previous years. Typically, Memorial Day weekend doesn't have a lot of real estate transactions, though, during the pandemic, it did. Let's see if next week's number is any better.

Total year-to-date purchases show the difference in this year's market:

We've had 1,504 year-to-date sales. 2018 YTD sales = 1839; 2019 YDT sales = 1931; 2020 YTD sales = 1688; 2021 YTD sales = 1945; 2022 YTD sales = 1697. Overall, the 2023 low sales correlate with both low inventory and lower demand because of interest rates.

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.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

Properties in all price ranges are still selling. Boulder realtor sell-through rates show that buyers may be more in the driver's seat in certain parts of the market.

PRICE REDUCTIONS

There are a seasonally appropriate number of price reductions happening in the marketplace right now. We may see more later in the year, as our inventory started coming later in the year, and there is a correlation between days on market and price cuts. If interest rates go down and buyer demand increases, we may not see those price cuts.

National Market Takeaways

Shadow Demand and Shadow Inventory:

What is meant by the terms 'shadow inventory' and 'shadow demand'?

Shadow inventory is homes that are ready to come to market, but that are waiting for what potential sellers feel is a more propitious time. Similarly, shadow buyers are fully vetted potential buyers who are sitting on the sidelines, waiting for inventory to appear and rates/prices to drop. These conditions are also sometimes called pent-up supply and pent-up demand.

This shadow inventory and shadow demand doesn't show up in mortgage purchase applications or showing history,

Nationally, the new home market is doing extremely well. New home sales in May rose to a 13-month high, demonstrating underlying shadow demand.

Nationally, there are very few active sellers. We started out the year with 70% more inventory than last year; now, it is at just 16%. If we continue at the same pace, by mid-July we'll have negative year-over-year inventory growth. Negative inventory Y-o-Y may translate to rising prices in the following year.

Nationally, we started the year with 35% fewer homes under contract Y-o-Y. Demand has been climbing and inventory has been restricted; now there are 13% fewer homes under contract Y-o-Y. This is a notable trend, attesting to rising demand without a correlating increase in supply.

National Price Reductions:

Nationally, 30% of homes on the market have had a recent price reduction, which is totally normal for this time of year. Because inventory is so restricted this year and demand has remained sufficient, fewer sellers are cutting prices than we usually see this time of year. We may see more price reductions in the second half of the year, since inventory bottomed in April, not Jan/Feb, this year.

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 realtor team at Burgess Group know if you or anyone you know has a home that might fit. We’d love to help!

Existing home prices down $25k from June 2022 peak to $388,800.

Single-Family Construction Slowdown Less Pronounced in Lower Density Markets

Year-over-year Rent Growth Continues to Decelerate; Asking Rents Likely to be Down year-over-year in June or July

Early Look at Local Housing Markets in May

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

MAY 26, 2023

Blog, Boulder, Boulder CO, Boulder Real Estate News, Newsletter
- May 25, 2023

Friends,

Buyers, your "Buy Low" opportunity may have reached its lowest point. Acquire your properties before market conditions shift and competition increases in the second half of the year, as projected.

When considering the value of your low-interest rate mortgage, be sure to assess the impact of your other debt and projected capital gains. Selling to pay off your debt, minimize capital gains exposure, and take advantage of low buyer competition may be smart tax planning and create compelling financial gains.

Nationally, some regions of the country are experiencing a rapid cooldown from the homebuying boom, while others maintain a steady market.

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

LOCAL MARKET TAKEAWAYS

BUYERS

Currently, Boulder real estate agents are happy to report that we’re in a phase of favorable buying conditions, commonly referred to as “Buy Low”. This rarely happens in our area. Buyers will find reduced or minimal competition, potential seller concessions, and possibly lower prices. These three positive trends create an advantageous environment for cash buyers. For those using loans, explore sales and find a loan that allows for affordable refinancing. Looking ahead, real estate pundits predict that pent-up buyer demand will likely resurge in the marketplace during the second half of the year as mortgage rates stabilize.

SELLERS

Sellers, as you contemplate the value of your low mortgage rate, assess the impact of any additional higher interest rate debts on car loans, credit cards, or home equity lines of credit as well as projected capital gains. Consolidating your debt by refinancing or selling your home to pay off all your debt could result in significant financial gains, especially when paired with the "buy low" opportunity mentioned earlier.

If you choose to sell, please get in touch with the Boulder realtors at Burgess Group | Compass at your earliest convenience to understand the specific features and conditions that home buyers are currently willing to pay a premium for. This proactive approach will allow you to position your home strategically and maximize your selling price, even in today's market.

Local Market Nitty Gritty - Boulder County

Boulder real estate agents reported 133 new listings coming to market last week, vs 145 in 2018, 171 in 2019, 119 in 2020, 137 in 2021 and 157 in 2022. So, last week's number was not hugely off of the amounts of inventory that came to market in the past five years (Y-o-Y).

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.

Activity By Price Band and Price Reductions- Boulder County

ACTIVITY BY PRICE BAND

Boulder County realtors are continuing to see buyers buying in all categories. The entry-level market has had particularly strong sell-through rates in the past month.

PRICE REDUCTIONS

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.

This localization is evident in the divergent metro-to-metro variations in home-price growth, which reached a 13-year high in spring 2022, marking the end of the pandemic-induced homebuying frenzy.

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.

The considerable price-growth gap between San Francisco and Miami serves as a notable example of the localized nature of the housing market. In this case, the Bay Area is witnessing a decline in home prices by 10.1% year over year, whereas Miami is experiencing a substantial increase of 10.9% that has pushed prices close to a record high. This 21-percentage-point difference is one of the largest observed in over three decades, with a peak of 23 points recorded in August 2022.

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 realtor team at Burgess Group know if you or anyone you know has a home that might fit. We’d love to help!

Good News for Homebuyers: Investors May Be Calling It Quits in a Pricey Housing Market

Fed’s Kashkari says a June pause on rates wouldn’t indicate an end to hiking cycle

Short Home Supply Keeps Prices High, Even As Rising Rates Dampen Demand

Fed Chair Powell says rates may not have to rise as much as expected to curb inflation

U.S. Growth Touches Fastest Monthly Rate in More Than a Year

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

MAY 12, 2023

Blog, Boulder Real Estate News
- May 12, 2023

Friends,

Buyers, some indicators show that your "Buy Low" opportunity is bottoming. Get your property before there is more competition in the 2nd half of the year.

Sellers, buyers are waiting for inventory and buying in every category.

Nationally, home prices rose after seven months of declines.

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

LOCAL MARKET TAKEAWAYS

BUYERS

We are still in "Buy Low" right now, which for our area mostly means less or no competition, with possible seller concessions and lower prices. Three really positive trends, with the negative of higher interest rates. It is a phenomenal time for cash buyers. Loan buyers, shop around and find a loan that will let you refinance on the cheap and move forward; by the second half of the year, it is predicted that pent-up buyer demand will return to the marketplace,

SELLERS

Buyers are sitting on the sidelines because there is very little inventory. Overall, local inventory is still very low in many categories. Buyers are buying in all categories. You need to be careful about how you come to market, to be prepared for what today's buyers want. Call a Burgess Group Boulder realtor early to talk about your home before you do your prep work.

Local Market Nitty Gritty - Boulder County

Boulder County realtors reported 135 new listings coming to market last week, vs 131 in 2018, 150 in 2019, 120 in 2020, 104 in 2021 and 124 in 2022. This is a decent amount of inventory to come to market, but we have a dearth to make up. Inventory is still short, see the chart below.

81 properties went under contract last week, compared with 104 in 2018, 113 in 2019, 80 in 2020, 128 in 2021, and 102 in 2022. This number is far lower than our more robust years. Last year's numbers were impacted by limited inventory; this year's number is impacted by limited inventory and higher interest rates. Buyers, remember, this is your "buy low" opportunity with less competition, hopefully softer prices, and possibly seller concessions.

Total year-to-date purchases show the buyer's market also:

So far this year, we've had 1138 sales. 2018 YTD sales = 1413; 2019 YDT sales = 1492; 2020 YTD sales = 1249; 2021 YTD sales = 1561; 2022 YTD sales = 1297. Overall, the 2023 low sales will equate with many sellers being very motivated.

Please remember: 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.

Activity By Price Band and Price Reductions- Boulder County

Boulder County needs inventory in many categories; the luxury market has dipped into a strong buyer's market. Buyers are still buying in all categories, so talk in person with a Burgess Group Boulder realtor about what this means in luxury and beyond.

The number of price reductions is trending up week-over-week, which is normal for this time of year. Sellers come to market with their desired price. If the critical mass of buyers shopping for a certain category of home doesn't see correlating value in the home's price, it will not sell. Sellers must improve condition and/or drop price for a sale. If the expected pent-up demand hits the market in Q3 and Q4, we may see price reductions start to trend down in the second half of the year.

National Market Takeaways

National inventory is down, which broadly speaking, is keeping prices from dropping significantly.

On May 5th, the 7-day average inventory was 420 thousand, slightly lower than the previous week's 422 thousand. Year-to-date, there has been a 14.5% decrease in inventory, although there has been a 3.5% increase from the bottom observed three weeks ago.

The second graph displays the seasonal trend of active single-family inventory since 2015, where the red line represents 2023 and the black line represents 2019. It is worth noting that despite being higher than the past two years (which saw a record low in 2022), inventory levels are still significantly below normal.

In contrast with the national market, you can see Boulder's inventory year-over-year above.

We are in a slight seller's market (mostly in pockets of the $2mm and below price bands).

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 realtor team at Burgess Group know if you or anyone you know has a home that might fit. We’d love to help!

Mortgage Lock Volumes Fall Despite Marginally Lower Rates as Reluctant Buyers Face Continuing Inventory Shortage

Inventory Shortage: Inventory Decreased 0.6% Week-over-week

Mortgage Rate Watch: Plenty of Movement, Not Much Progress; More Volatility Ahead

Outlook for household spending slumped in April, New York Fed survey shows

Used vehicle prices fell last month for the first time in 2023

66% of renters say homeownership is ‘hopeless’—here’s how they’d rather spend their money

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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WEEKLY MARKET UPDATE, REAL ESTATE
STATISTICS & NATIONAL NEWS

APRIL 28, 2023

Blog, Boulder CO, Boulder Real Estate News, Newsletter
- March 31, 2023

Friends,

Buyers, there are some indicators that your "Buy Low" opportunity is bottoming and beginning the climb to a more balanced market. Sellers, inventory in most categories remains low, and buyers are buying in every category. Nationally, home prices rose after seven months of declines.

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

LOCAL MARKET TAKEAWAYS

BUYERS

We are still in "Buy Low" right now, but indexes are starting to show that we may have bottomed. Boulder realtors expect that the second half of the year will be much more balanced, with a stronger market for sellers. Be brave and buy while competition is sparse and prices are softer. Lenders are offering phenomenal good deals; ask us for a list of great lenders.

SELLERS

Overall, inventory is still very low in most categories. Buyers are buying in all categories. To be successful in this market, let's talk early about how to address buyer concerns for your property before coming to market.

Local Market Nitty Gritty - Boulder County

Boulder real estate agents reported 98 new listings coming to market last week, vs 125 in 2018, 127 in 2019, 54 in 2020, 105 in 2021 and 139 in 2022. So, the only other year with less inventory was 2020 when we were in shutdown. Many parts of our market still dearly need inventory.

87 properties went under contract last week, in comparison with 98 in 2018, 115 in 2019, 42 in 2020, 97 in 2021, and 82 in 2022. This number is far lower than our more robust years. Last year's numbers were impacted by limited inventory; this year's number is impacted by limited inventory and higher interest rates. Buyers, remember, this is your "buy low" opportunity with less competition and hopefully softer prices.

Boulder County needs inventory in many categories; that said, much of the luxury market has dipped into a strong buyer's market. Buyers are still buying, so let's talk in person about what this means.

Please remember: 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.

Activity By Price Band and Price Reductions- Boulder County

Over the last month, Boulder County realtors have seen good activity in all price bands. There is no section of our market that is not going under contract, which reflects the area's strong housing market.

Sellers are making a varying number of price changes from week to week. The fact that we're not seeing a hugely upward trend like we did starting this time last year is encouraging. Price changes directly reflect seller confidence; they are a coincident indicator showing that today's market is far stronger now than it was in Q3 and Q4 of 2022.

National Market Takeaways

February Home Prices See First Monthly Rise After Seven Straight Declines

The combination of a slight improvement in affordability during January and early February, along with reduced inventory levels, resulted in a modest increase in home prices.

After adjusting for certain factors, prices rose by 0.16% during the month, marking the most robust monthly increase since May of the previous year. Without any adjustments, prices increased by 0.68%.

In the latest month, the annual growth rate of home prices displayed a decline of 164 basis points, dropping to 1.94%. This marks the first instance of annual home price growth falling below 2% since early 2012.

It is anticipated that price growth will enter negative territory by April, but there is a possibility of it returning to above 0% before the year's end, provided that inventory challenges persist and interest rates decrease.

Taking everything into consideration, home prices across the country have declined by 2.6% from their peak in 2022, which represents a slight improvement from January's figure of 2.7%.

The Race to Homeownership: Gen Z Tracking Ahead of Their Parents’ Generation, Millennials Tracking Behind

In 2022, about 30% of 25-year-olds were homeowners, which is a slightly higher rate than that of millennials (28%) and Gen Xers (27%) when they were at the same age. However, it is slightly lower than the homeownership rate of baby boomers (32%) when they were 25 years old.

In 2022, Virginia Beach saw a higher percentage of Gen Z homebuyers than other parts of the country, with this group purchasing 9% of homes sold. Meanwhile, Seattle emerged as a popular destination for millennial homebuyers, as they accounted for over 40% of homes sold in job centers within the city.

Over the past several years, millennials have purchased more homes than other generations, with 25-44-year-olds accounting for about 60% of all homes sold. Among these buyers, those who purchased a home before the rise in interest rates have an advantage over their peers who missed out on buying earlier. These "mortgage millennials" have secured a more favorable mortgage rate, which can translate to significant savings over the life of the loan.

Compared to their parents, millennials are lagging behind in homeownership, with only 62% of 40-year-olds owning their home in 2022. This rate is lower than the 69% homeownership rate for baby boomers when they were at the same age.

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 realtor team at Burgess Group know if you or anyone you know has a home that might fit. We’d love to help!

Why Measures of Existing Home Inventory Appear Different

Mortgage Delinquencies Hit Record Low in March

Weekly Active Inventory Up 49% YoY; New Listings Down 5% YoY

Home sales fell in March amid volatility in mortgage rates

Rental Market Tracker: U.S. Rents Post First Annual Decline in Three Years

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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Boulder Real Estate News & National Statistics

March 31, 2023

Newsletter
- March 31, 2023

Friends,

Buyers, now is your "Buy Low" opportunity. Sellers, buyers are buying and inventory is low, so come to market. Nationally, Boulder again ranks at the very top of US metropolitan markets for price growth and stability.

Click anywhere below to check out our current exclusive listings.

LOCAL MARKET TAKEAWAYS

BUYERS

We are in "Buy Low" right now. Our market doesn't see "Buy Low" opportunities very often. Once the Fed stops messing with interest rates, buyers will engage robustly again. Our Boulder realtor team recommends being brave and buy while competition is sparse and prices are softer. There are lots of lenders offering to refinance for free when rates settle, so don't let current rates stop you.

SELLERS

Yes the market dropped 4% last year, but we still had 10.14% appreciation last year! Overall, it is still an excellent time to sell; we are still in a housing shortage in most categories. Buyers are buying. This week Andy has helped 3 referral/repeat buyers get under contract and looks like there will be a fourth offering. To be successful, address buyer concerns before you come to market. Let's talk early about what that means for your property.

Local Market Nitty Gritty - Boulder County

Boulder real estate agents reported 71 new listings coming to market last week, vs 108 in 2018, 95 in 2019, 91 in 2020, 68 in 2021 and 61 in 2022. So, there was still a slightly low amount of new inventory last week relative to the non-pandemic numbers.

79 properties went under contract last week, in comparison with 77 in 2018, 90 in 2019, 62 in 2020, 92 in 2021, and 71 in 2022. This is the highest number of under-contracts in 2023, with mostly week-over-week increases.

With this rate of inflow and outflow, Boulder County inventory is still considerably low. Still, our year-over-year inventory numbers are higher than in 2022 last week.

Please remember: 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.

Activity By Price Band and Price Reductions- Boulder County

In the past three weeks, Boulder County realtors have witnessed activity in all price bands. This is excellent to see. There is no part of our market that is languishing without buyer engagement.

Price changes dropped to 31 last week. It is good to see that we are not only seeing price change numbers climb. Price changes directly reflect seller confidence; they are a coincident indicator showing that the market is far stronger now than it was in Q3 and Q4 of 2022.

National Market Takeaways

Every year, SmartAsset identifies the best and worst housing markets for price growth and stability. They compared home value data for 400 metropolitan areas between 1998 and 2022, calculating cumulative increases during that time and the frequency of significant drops in value.

Great news! In 2023, Boulder came in #3 and Fort Collins comes in #4 out of these 400 metropolitan areas. Boulder has ranked in the 10 - usually in the top 5 - for the past 10 years. Fort Collins and Denver typically rank very well also. Much of Texas has been doing very well for several years also; it is particularly bouyed by the energy and some tech industries.

National Housing Market Price Growth and Stability Nitty Gritty

Click here to learn where various cities fall in this ranking.

3. Boulder, CO

Boulder has a strong housing market with significant growth and stability, despite not experiencing the same level of population increase as other top-ranking cities. Between 1998 and 2022, home prices rose 256.48%, 33rd-most out of the 400 metro areas. The presence of notable tech companies such as Google and IBM, along with its reputation as a startup hub, may be contributing factors to its economic success.

4. Fort Collins, CO

Overall, Fort Collins' strong economy and natural beauty have helped to make it a desirable place to live, which has in turn driven up home prices in the area. However, despite the high cost of living, many people continue to be drawn to Fort Collins for its excellent quality of life and opportunities for outdoor recreation.

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 our Compass Boulder real estate agents know if you or anyone you know has a home that might fit. We'd love to help!

Rent growth drops back to pre-pandemic levels, but some markets are falling much harder

Consumer Confidence Increased Slightly in March

Housing March 27th Weekly Update: Inventory Decreased 0.3% Week-over-week

U.S. homeowners have impressive 71% equity. But can buyers afford these values?

Freddie Mac: Mortgage Serious Delinquency Rate declined in February

🏆 5280 Magazine Double Black Diamond Award

The Compass Boulder realtors here at Burgess Group are proud to once again be named a Double Back Diamond Team by 5280 Magazine! (This means we sold over $40 million! It’s the highest award!)

We could not do this without your support and referrals.

Do you know someone curious about buying or selling real estate? We'd be grateful for an introduction -- let's all grab lunch together!

🏆 #4 Boulder Compass Team

We're proud to announce that we've been named the #4 Team by Sales Volume at Compass Boulder in 2022! That's up one spot from #5 in 2021 -- we love making progress and challenging ourselves to be better every year!

Our deepest gratitude goes out to all of our friends and clients who trust us with their real estate needs...and refer their friends to us as well!

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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Boulder Real Estate News & National Statistics

March 17, 2023

Blog, Boulder, Boulder CO, Boulder Real Estate News
- March 17, 2023

Friends,

Now is a terrific time for luxury buyers to purchase. Sellers, quality local inventory below $1.5mm is particularly needed right now. The national inventory shortage continues.

LOCAL MARKET TAKE-AWAYS

BUYERS

There is a silver lining for luxury buyers right now: competition is sparse and jumbo products now have lower rates than most other types of loans, as there is much less risk that high-end buyers will default on their mortgages. High-end borrowers can get further rate discounts by storing substantial funds at the bank offering the mortgage. Plus, if you purchase now, many lenders will refinance for free when rates go down.

SELLERS

Our housing shortage continues in the $1.5mm and below category. The trick for sellers right now is coming to market with a product so compelling that buyers will buy. To do that, condition, location, and price must all be in alignment. Talk early with Boulder realtor at Burgess Group | Compass about what that means for your property.

Local Market Nitty Gritty - Boulder County

Boulder real estate agents report on 90 new listings coming to market last week, vs 99 in 2018, 105 in 2019, 86 in 2020, 106 in 2021 and 85 in 2022. So, there was still a slightly low amount of new inventory last week relative to the non-pandemic numbers.

71 properties went under contract last week, in comparison with 88 in 2018, 86 in 2019, 87 in 2020, 106 in 2021, and 79 in 2022. This is the highest number of under-contracts in 2023, with mostly week-over-week increases.

With this rate of inflow and outflow, Boulder County inventory is still considerably low.

Please remember that 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.

Activity By Price Band and Price Reductions- Boulder County

Boulder County realtors last week saw the highest activity in the $1mm and below market. There is more inventory to shop above $1mm, particularly in the $1-1.5mm and $2-2.5mm price bands.

Price changes popped up to 46 week-over-week from 17. In the weeks since January 1st, we've had 15, 32, 25, 26, 39, 25 ,38, and 17. So, this is a substantial increase, possibly as sellers see the Fed less committed to tapering the tightening. Price changes are a coincident indicator, directly reflecting seller confidence.

National Market Take-Aways

There is still a residual shortage of housing, Says The National Association of REALTORS Chief Economist.

National Market Nitty Gritty

According to NAR chief economist Laurence Yun, there was a housing shortage before the pandemic. In the low interest rate housing boom years of 2020 and 2021, the shortage intensified. In 2022, home sales declined, then declined further, because of rising mortgage rates. Said Yun, "Furthermore, apartment building went gangbusters, 40-year high activity. So, we still have a residual shortage of housing. So, before 5 million, now 4 million in my estimation."

So, the trick right now for sellers nationwide is coming to market with a product so compelling that buyers will buy.

Speaking of low inventory, 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 our Boulder realtors know if you or anyone you know has a home that might fit. We’d love to help!

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

🏆 5280 Magazine Double Black Diamond Award

Our Compass Boulder real estate agents are proud to once again be named a Double Black Diamond Team by 5280 Magazine! (This means we sold over $40 million! It’s the highest award!)

We could not do this without your support and referrals.

Do you know someone curious about buying or selling real estate? We'd be grateful for an introduction -- let's all grab lunch together!

🏆 #4 Boulder Compass Team

Proud to announce that we've been named the #4 Team by Sales Volume at Compass Boulder in 2022! That's up one spot from #5 in 2021 -- we love making progress and challenging ourselves to be better every year!

Our deepest gratitude goes out to all of our friends and clients who trust us with their real estate needs...and refer their friends to us as well!

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

More News Here

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Boulder Real Estate News & National Statistics

March 03, 2023

Uncategorized
- March 03, 2023

Friends,

In the past two weeks, needed inventory came to market; as a result, under-contracts increased. Nationally, homeowners are hanging on to their homes for an average of 12.3 years.

LOCAL MARKET TAKE-AWAYS

BUYERS

Cash buyers and savvy loan buyers have recognized right now as a strong buy opportunity with lower competition and softer prices. A historically normal amount of inventory came to market last week, so there is more to choose from. Our under-contract and sell-through numbers from the past two weeks reflect that buyers are still buying in all price categories.

SELLERS

Price changes continue to hold steady at a fairly low rate, showing sellers have confidence in the current market. Inventory continues to be at historic lows; our under-contract numbers show that sales are indeed happening. In this market, preparing your home correctly and pricing according to the condition of the home are critical for success, so call our Compass Boulder realtor team early to make good prep decisions. Prepare your home to be the one in its category that buyers want to buy.

Local Market Nitty Gritty - Boulder County

Boulder real estate agents reported 82 new listings coming to market last week, vs 66 in 2018, 87 in 2019, 62 in 2020, 73 in 2021 and 67 in 2022. So, a good amount of new inventory came to market last week vis a vis the last 5 years.

63 properties went under contract, in comparison with 65 in 2018, 90 in 2019, 79 in 2020, 91 in 2021, and 64 in 2022. This is the highest number of under-contracts in 2023, with mostly week-over-week increases.

Overall, Boulder County realtors report that inventory is still considerably low.

Please remember that 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.

Activity By Price Band and Price Reductions- Boulder County

Again, in the past two weeks buyers have been active in all price ranges of our market. Last week saw a lot of entry-level market activity, with a 300% sell-through rate.

Price changes were slightly down week-over-week at 36. In the weeks since January 1st, we've had 15, 32, 25, 26, 39, 25 ,38. So, price changes are holding steady, indicating sellers are still confident about the market. Historically, March, April and May bring more buyers than any other months in the Boulder market. Also, historically interest rate changes have not impeded buyers from buying, so hopefully we'll see this again this year. The Burgess Group | Compass Boulder realtors here will keep watching the price change numbers to monitor seller confidence.

National Market Take-Aways

Exploring Inventory: U.S. Homeowners Typically Sell Every 12 Years, Down From 2020 Pinnacle

National Market Nitty Gritty

Why does inventory continue to be low throughout the country?

Due to all the unknowns of the pandemic, many homeowners refrained from selling in 2020; that year, the average duration holding a property was 13.4 years. In comparison, in 2005, the average home ownership tenure was 6.5 years.

In the past two decades, homeowners have held their properties for nearly double the amount typical previously. This has decreased the amount of sale inventory.

More than 1/3 of Boomers age 65 and older have held their properties for more than 33 years. On the opposite end of the trend, millennial homeowners own for an average of 3 years or less.

Property tax laws also impact how frequently people move, so trends can be different from state to state. This year, the average U.S. homeowner has lived in their home for 12.3 years.

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

Fed Might Be Winning Inflation Fight, Depending on Index Used

Year-over-year Rent Growth Continues to Decelerate

42% of homeowners have no mortgage, and may hold key to unlocking buyer inventory

Freddie Mac House Price Index Declines for 7th Consecutive Month in January

5280 Magazine Double Black Diamond Award

Our Compass Boulder real estate agents are proud once again to be named a Double Black Diamond Team by 5280 Magazine! (This means we sold over $40 million! It’s the highest award!)

We could not do this without your support and referrals.

Do you know someone curious about buying or selling real estate? We'd be grateful for an introduction -- let's all grab lunch together!

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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Boulder Real Estate News & National Statistics

February 17, 2023

Uncategorized
- February 17, 2023

Friends,

Locally and nationally, buyers may still have an opportunity to move forward with some negotiating room, but that window is starting to close.

Sellers, there are more buyers now and some properties are getting multiple offers; inventory is still historically low.

LOCAL MARKET TAKE-AWAYS

BUYERS

Buyers have a strong buying opportunity right now. The current local 97.5% list-to-sale price ratio means that sellers are still negotiating. Inventory is rising, so you have more options. Average Days-On-Market (DOM) is 57 days, so buyers can take a little more time deciding on purchases. As more buyers enter the spring market, prices will go up. Our Boulder realtor team is already seeing an increase in multiple offers across disparate parts of the market.

SELLERS

As you can see from our chart below, inventory is still historically low, providing a strong sell opportunity. Sellers, mortgage lock rates (a leading indicator of buyer activity) have gone up. In order to be successful in this market, you have to prepare for market; this is critical for getting an offer or even multiple offers. Connect with Burgess Group Boulder real estate agents early so that you have the best success.

Local Market Nitty Gritty - Boulder County

Local Boulder realtors report on 63 new listings coming to market last week, vs 74 in 2018, 90 in 2019, 85 in 2020, 65 in 2021 and 66 in 2022. So, last week's new listings were a little bit fewer than the low inventory arenas of 2020 and 2021.

43 properties went under contract, in comparison with 78 in 2018, 81 in 2019, 90 in 2020, 78 in 2021, and 53 in 2022. So, under-contracts are still substantially lower this year, with a week-over-week slip also. This lower under-contract number likely reflects our historically low inventory.

Please remember that 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.

Activity By Price Band and Price Reductions- Boulder County

In general, we've had consistent activity in all the price bands since the beginning of the year. Last week saw lower sell-through rates in the high luxury market. $1.5mm-2mm had the greatest sell-through rate last week at 125%.

Price changes popped up last week to 39. In the weeks since January 1st, we've had 15, 32, 25, and 26. As you can see from the chart below, these are far better numbers than last summer/fall, representing a notable and quick turn-around in the market since last fall. Our Boulder County realtors will keep checking price changes as a metric of seller confidence.

National Market Take-Aways

Inventory is up over 2022 numbers, but down below 2019 numbers. Inventory is still historically low. Price changes are dropping, which reflects more buyer activity and a tightening housing supply.

National Market Nitty Gritty

Single family home inventory has moved up 78% year-over-year for the first week in 2022, but it is down 45.4% year-over-year compared to the first week in 2019. Inventory is still historically low, providing . A key will be when inventory starts increasing in 2023 - so far inventory has declined about 9.7% over the first six weeks of 2023.

KACIE, please insert the chart below here.

The price reduction chart below shows us supply and demand also at play.

Every line below represents a year. This past week only had 32% of homes reducing price, which is a reduction. This year's dark red line below shows rapidly reducing price reductions. If the dark red trajectory continues, it could be below 30% in a few weeks.

That change would illustrate a remarkable turnaround from the conditions last fall.

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

Mortgage Rate Locks Break 9-Month Losing Streak

Here’s the breakdown of the inflation report for January — in one chart

Slow Progress for Inflation

Current State of the Housing Market: Overview for mid-February

Andy Named #5 Realtor in Boulder County

We're happy to announce that with the help of Catherine, Andy has been named the #5 Realtor in Boulder County for the year of 2022 by Real Producer's Magazine.

Click here to see the whole list.

[email protected] | 303.301.4718 | burgessgrouprealty.com

[email protected] | 303.506.5669 | burgessgrouprealty.com

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Boulder Real Estate News & National Statistics

February 03, 2023

Uncategorized
- February 03, 2023

Friends,

Burgess Group | Compass Boulder realtors report that the real estate market is showing signs of bottoming out and has begun to bounce up, both locally and nationally.

BUYERS

Buyers have a tremendous opportunity right now. Nationally mortgage applications and pending sales are trending up, indicating we've bottomed and are now in a rising market. Look at the history of the 30-year fixed below going back to 1971. At 6ish % (often lower, ask us for lender info), we're near historic lows. Additionally, look at the chart below of the history of home prices below.

The market hasn't made its full comeback yet, but it will go up again as it has after every slowdown and recession since 1963. Census data shows a huge bubble of volume of first-time buyers ahead; we still have limited supply. Buyers, get organized and take advantage of the lower competition and prices - this lull may last until the end of the Fed's quantitative tightening is finished, likely in early March or by the end of the spring.

The demanding seller's market will likely be back in place by the end of 2023, with an inventory-short market.

SELLERS

Sellers, the market is looking a little rosier for you. We still have quite low inventory in most categories and buyers are starting to try to get ahead of the market.

How you prepare your home for market is super important, as there is more competition for buyers right now than we've seen in recent years. That said, our Boulder realtor team is seeing more recent buyer activity and some multiple offers. Let's connect early so that you come to market poised to sell well.

Local Market Details - Boulder County

Boulder real estate agents report on 66 new listings coming to market last week, vs 70 in 2018, 76 in 2019, 93 in 2020, 57 in 2021 and 57 in 2022. So, last week's new listings were a little better than our inventory starved 2021 and 2022, fairly close to 2018's numbers.

55 properties went under contract, in comparison with 73 in 2018, 76 in 2019, 84 in 2020, 69 in 2021, and 56 in 2022. So, our under contracts are still lower this year, but if we look at our January 2023 week-over-week numbers, we see an improvement in buyer confidence / stabilization of mortgage rates, as under-contracts have progressed as follows:

25,

48,

42, and last week to

55. To note, 2022's lower under-contract rate was a result of limited inventory, not low buyer confidence.

Please remember that 2020, 2021 and 2022 were outliers. 2018 and 2019 are more reflective of our historic real estate normals.

Activity By Price Band and Price Reductions- Boulder County

Since the beginning of the year, we've had good activity in all the price bands. Boulder County realtors indicate that the market looks pretty healthy, with buyers active from the very high end down into the condo market.

Price change information will be an important way to assess if the real estate market locally has bottomed and is beginning to improve.

Each week since January 1st, we've had the following price reductions: 15, 32, 25, and 26. We saw similar numbers in March of 2022, when the market was still very hot and beginning the downturn. These are a far cry from the 80-100+ weekly price reductions we saw through the summer and fall. Hopefully, these lower price change numbers together with the national trends noted below, indicate that our local market has moved past its lowest point and begun its recovery.

Nationally, there are signs the housing market has bottomed and perhaps is in the beginning of its bounce.

Mortgage rates appear to have stabilized a bit. As a result, mortgage applications are up.

The National Association of Realtors just released Pending Home Sales data; this data also quantifies this potential shift. As we can see in the chart below, pending home sales have risen at the fastest pace since October 2021.

According to NAR chief economist Lawrence Yun, “This recent low point in home sales activity is likely over. Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”

In addition to applications and pending home sales, United States Census data shows us that there will be a tremendous burst of buyers coming to market soon.

As seen in the chart below, there are 15.3 million adults aged 35 and below who are expected to move from renting to owning in the near future!

What's going on with Mortgage Rates?

Leading Boulder realtor Catherine Burgess sits down and chats with SVP of Mortgage Lending & Branch Manager of Origin Point, Karen Hope to discuss where rates are this week, and where they could be going.

<- Click here to watch the video (less than a minute!)

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