Boulder was a Buyer’s Market
Just a few years ago, buyers were routinely receiving significant discounts on houses with incentives as well. Homes were taking months to get an offer. My clients were looking at plenty of homes and selecting the best. Buyers were able to dictate the terms – frequently including closing costs or very slow closing transactions.
Boulder Evolving to Seller’s Market
That trend started to reverse itself in Boulder as inventory levels dropped in 2012. Why? Simply put: fewer owners were attempting to sell houses in 2012. There are a number of reasons for this change. Foreclosures and delinquencies are down nationwide and especially in Boulder.
2013: Fewer distressed properties for sale in Boulder than in past years.
The rental market is booming, so some owners have become landlords rather than sellers. And some owners who would sell and buy are finding they cannot do so in 2013. Lending Restrictions are preventing some owners from moving. Though they qualified before the recession, it is more difficult today to get financed for a move – so owners are staying put and not selling their houses. And finally, as a result of the recession, construction of new housing units – both for sale and rent – pretty much came to a halt.
The net result? Boulder housing inventory is very low.
Boulder is the place to live
Meanwhile, demand has been growing. Buyers are still moving to Boulder for college, career and lifestyle. Neighboring Louisville remains ranked one of the best places to live. Our economy is doing well and CU Boulder continues to grow in class size.
Coupling the buyer demand with low inventory causes the market to shift to a Seller’s market. And in a seller’s market, several startling effects occur for buyers. First and foremost, homes sell significantly faster.
Waiting for the weekend to view the hot new home on the market is no longer a luxury buyers can afford.
And concessions are disappearing quickly. In strong markets, owners need not pay buyers to purchase their homes. A few years ago, staged homes with all the bells and whistles plus a healthy discount during negotiations and one’s closing costs paid was achievable when purchasing a home. Though it may feel sudden to buyers in 2013, that trend is in the past. Today, homes are selling quickly, with clean offers and no concessions and sometimes with multiple offers. This can feel startling for buyers in the Boulder market who have heard stories from friends in just the past few years. The home buyers that can quickly adjust to the new market will benefit the most. As Spring arrives, expect to see the mass of buyers flood a market that is already tight on inventory.
Bottom line on Boulder Real Estate
With the inventory of homes for sale down, prices climbing and more buyers coming into the market this Spring, expect to see sellers stop offering incentives to get deals done. Concession free transactions are likely to be the norm in Boulder this Spring. Call me to discuss your buying and selling needs. I’m available to speak with you.
The disappearance of concessions is the strongest indicator of a shift to a Seller’s Market.
We are seeing the same thing here in South Florida. Very low inventory, increase in pricing and no concessions. I see that 2013 will have a great impact in sales, with the low interest rates. Now is the perfect time to buy…
I’m betting Boulder sellers are looking forward to your developing seller’s market. They need to call you now to get those properties on the market while this lasts.