Economics are at play in the Boulder valley real estate market. Inventory has shrunk to a fraction of the normal number of homes for sale. Meanwhile, demand has grown. We have more people moving to Colorado, more Millennial first time home buyers, more need of more house.
This isn’t just one market. This is impacting the Boulder county real estate market, the Front Range, the whole of the Colorado real estate marketplace.
Hold your horses before you say, “this is a great Boulder valley real estate market.” Maybe, if you are simply selling and moving on down the road, it can be. But, for the vast majority that wishes to sell one house and buy another, this is a challenging time. It’s not uncommon for entry level home buyers to run into eight, twelve or even twenty competing offers.
Put another way, every time a house comes up for sale lately, nineteen disappointed would-be home buyers are turned down. Not too much fun if you ask me.
Colorado Population Growth Leaps Since 2010
Weld County is a big place, and home to the largest population growth in Colorado. But take a look at Broomfield. It’s a relatively small county and accounts for a 29% increase in population. Boulder valley real estate is not too shabby with twelve percent more people in the last decade.
Denver, a super popular metro destination for Millennials is 24% more crowded than a decade ago. We don’t have all the housing this growing population needs. Rather, when you consider that the first few years of this decade we were coming out of The Great Recession and housing new construction was at a standstill – well, we are still digging out of that issue!
Look, you can see we have this population growth. But, that doesn’t explain the entire country – because a great deal of the United States is experiencing a strong Seller’s Market. When you combine what’s happening across the country with high population growth = unbelievable Colorado house market!
New Listings For Boulder Valley Real Estate Down
If you are home buyer, you know this.
If you are actively looking for a home, you know this.
But, this isn’t something that is simply impacting Boulder. Or The Front Range real estate market. Or all of Colorado. This is a United States of America issue. The National Association of Realtors reports (April 8, 2021) that of 381 markets, only four – 1% of all markets – saw increased new listing inventory year over year.
What this graph so aptly shows is that inventory of homes is plummeting nationwide. At the exact moment when demand is increasing. That demand is partly impacted by really low home mortgage rates. As I’m jotting this update, I have two lenders sending me data. Rates are between 2.875 and 2.990 percent for a thirty year fixed loan. That is really low.
So cheap money has people motivated to act, but you can see the NAR graph – there are fewer houses than ever. Everywhere and locally there are just no Boulder home sales to be had.
Low Inventory High Demand Trending
This has been the trend since the start of the year. I’ve blogged on Boulder County statistics at the start of the year. The low inventory plaguing our community. And then a look at more of the same in March.
Simply Not Enough Boulder Valley Houses For Sale
Those big tall grey rectangles – that’s a representation of how much inventory we would usually have. That puny little box on the far right? Represents a fraction of the homes, condos and town houses for sale this year. We are down about 70% of the normal Colorado Front Range home inventory. But remember, I started off this blog telling you Colorado population growth is up for decade.
This is a tough market to be a home buyer. Look at it a different way. In a “normal” recent year we had about two months of Boulder housing inventory. Today? Less than 1/2 a month’s homes for sale.
What Happens When Too Few Homes Meets Low Interest Rates And High Demand?
What happens when you take low home mortgage rates and strong demand and a lack of homes for sale? You get multiple offers and homes routinely selling for well about asking price. If you are thinking about selling your Boulder Co real estate, this is the ideal market.
If you want to sell and then buy, just know you are going to run into the same insanity all the current home buyers are facing. This may be why fewer homes are for sale. Buying is such a challenge. Who wants to let go of a home they like to face the craziness of this market?
For those seeking a Boulder home for sale, you want to be ready for a simple truth. You are apt to pay somewhere between one and five percent over list price. Entry level homes are commanding a larger percentage – there is more competition at those price points. But, at any price point around town, be ready for multiple offers and competition.
Winning In Multiple Offer Scenarios. What’s the secret? Is there a secret to winning a Boulder Valley real estate bidding war?
Home Sales Hit Milestone
Back in July of 2020, we hit a milestone, at least for the IRES multiple listing service in general. That month marked the most home sales ever. Boulder aside, The MLS as a whole, Larimer and Weld counties all saw increased home sales. Boulder’s sales were down. Why the disconnect? The lack of inventory adversely impacted Boulder to a greater degree really slowing sales.
What’s On The Horizon?
A staggering number of homes are under contract. We have a lot of closings coming for Boulder, Weld, Larimer and the entire IRES MLS.
A Good Realtor To Navigate The Market
Home buyers, and home sellers alike, are well advised to have a trusted real estate professional advising them in this challenging market.