Thanks for checking out my blog, Boulder Real Estate News. I’m writing this in support of my February Talking Real Estate print newsletter. It’s difficult to get everything you want to say into a printed document, you know!?!
Median Closed Price
So what’s going on with home prices for Boulder County? In January we saw median home prices for closed transactions increase year over year by 3.7%. That’s great news for homeowners in the county. Now, the average closed price was down for the same time frame. But I think that has more to do with changes in consumer behavior.
Think about it. A few years ago, with the advent of the unprecedented Covid lockdowns, everyone needed a lot more house right then and there. Today, we are spending some of our budgets on travel and experiences instead of more house.
So no surprise seeing average prices down. BTW, most of the graphs in this post are compliments of Anthony Meisner with Land Title Guarantee Corporation (LTGC). And as you read on, an advantage online vs reading my February Talking Real Estate letter is more charts and graphs with a lot more detail.
Average Price Per Square Foot
Condos and townhomes saw a really nice gain in average price per square foot. This is a great metric for seeing how your Boulder County home is doing in terms of growing value. You could take last month’s number, look up your square footage and do a little multiplication. Carry the one, do some math, you got this! And viola, you have a good rough estimate of where your home value is at.
Of course, a great deal goes into home valuations. Bill Gassett does a tremendous deep dive on the subject out in the Massachusetts market.
Side note here. One of the things I’m seeing in the news – online, newspapers, national news – is that the American Dream of home ownership is challenging for the latest generation. Well, I think it’s likely that consumers that shift their expectations are having the most success. Maybe in Boulder a house is beyond some buyers’ ability. But then try a townhouse or a condo.
I know my first place was a townhouse. It allowed me to later make the leap into a single family house.
This can be a great way to get into a higher priced market. And those clients of mine that invested last year in an attached dwelling saw their price per square foot really jump year over year.
Supply and Demand Changes
So far, 2024 is turning out to be a much tighter year for supply of homes for sale in Boulder County. I didn’t really get to talk about this in the February Talking Real Estate newsletter. An it is so important to understanding the market!
Active listings are sharply lower to start the new year. Look at the Active Listings chart above left. We are actually experiencing lower inventory than last year by a lot and even 2021 (Covid!) by some. So, basically tight market conditions.
Now, simultaneously we have more new listings in January than we did a year ago. So the total number of active listings was depressed in January, but the new ones coming to the market was up.
What I don’t miss from a few years ago are the super low interest rates. Wait, what was that? No, you heard me right. Look, in 2021 low interest rates combined with tight inventory led to multiple offers. I can honestly attest I had clients making offers for as much as a $100,000 over list price and losing out. Well, higher interest rates have eliminated some of that craziness.
If you are looking today, sure, your mortgage interest rate is higher. But, you don’t have to overpay for a house. You might not even have to compete which could work out for any number of benefits in your purchase transaction. But don’t think you are all alone.
Boulder Pending Transactions Increase Year Over Year
We’ve seen a jump in the number of pending transactions from last year. Why? Buyers have grown accustomed to the new normal in mortgage rates. And rates have improved from recent record highs. And there is simply a lot of pent up demand in Boulder County.
BTW, look back at that supply graph and you’ll see that every year, the inventory of homes grows through the Spring. But so does the number of home buyers out there. So, if you have been on the fence about making a jump into the Boulder home buying market, be aware so are many of your contemporaries. There may very well be more opportunities earlier in the year rather than later.
IMHO, as the Fed loosens rates, home mortgage rates will in turn improve and this is going to push more competitors for you into the market. So, an earlier decision might eliminate competition. Marry the house, not the rate! Don’t wait…
Closed Price to List Ratio
The last several years we have seen this ratio dip during the winter months and climb during the Spring of each year. Right now, well, at least in January, we were seeing sales closing for 97.4% of list price. That’s not going to last. If you are hoping to close on your new home closer to mid summer, that average will easily be over 100% of list price.
And location can come into play here. Maybe something on the edge of the county will be different in terms of closed versus list price than say right on Pearl Street Mall.
Enjoying this information? You can always subscribe to the website or send me a message and I’m happy to add you to my next issue of February Talking Real Estate — well, it will be the March issue. I’m Bob Gordon, residential real estate agent in the Boulder marketplace. I’ve been at this since 1995 and look forward to assisting you in your home buying or selling needs.