Housing Market Slowdown: Homes Now Averaging Increased Days on Market
One might ask, “has the housing market shifted?” It does seem as though suddenly open houses are back in vogue. For Sale signs are lingering. Talk of multiple offers is scarce. This is definitely not the era of 2020 during the pandemic. It’s not even the same market as a year ago.
Could it be that things are a-changing in our community? Guess what, the market is slower than in past years. In September, we averaged 68 days on the market in Boulder County. That’s a considerable percent increase year over year. This isn’t necessarily doom and gloom news by any stretch.
A slowing real estate market offers opportunities for buyers. It creates time to explore a wider range of options without the pressure of bidding wars. This more timely housing market environment can lead to more thoughtful decisions. Gone are the days of multiple better than full price offers waiving inspections and appraisals willy-nilly on every house to come to market.
That’s not to say there are not instant offers or competitive scenarios. Because, there are. Some homes still go under contract the same day or first week they are listed. Boulder home sellers will want to ensure their homes are market ready, easy to show, beautifully staged. Heck, you might even consider a pre-listing home inspection.
Navigating the Shift: Properties Are Taking Longer to Sell in Today’s Market
There are a number of factors at play here. Let’s start with the Elephant in the closet: interest rates. Now, hold your horses, you might be saying, “Hey Bob, the Fed just lowered rates.” That’s true. But funny thing, the day after the rate cut, Home Mortgage Interest rates actually ticked up.
If you are wondering why that would happen, the financiers in our country took the big rate cut and Fed wording to indicate the economy had some hurdles to overcome. This led more dollars out of stocks and into bonds. When more bonds are purchased, home mortgage rates actually suffer. Thus prior to the Fed’s comments rates were considered high. And after the comments rates are still high. Higher rates slow down housing purchases.
Something important to keep in mind friends. You are marrying the house, not the rate. For Boulder home buyers out there, this is the ideal moment to get your dream home, without competition and be in position to refinance when rates do truly improve.
But here’s the silver lining: a slower market can actually be a great opportunity for everyone involved! For sellers, longer days on the market provide a unique chance to thoughtfully showcase your property.
Inventory of Homes For Sale In Entire MLS Is Staggering
This time last year – well, September of 2023 – there were 13,296 homes for sale in the entire MLS. Guess what? That number is up by almost a third today. Yup, there are currently 18,488 homes for sale in the MLS. Five thousand more! That’s the big picture.
Zoom into Boulder County and you see we had 1,024 for sale last September. Today that number is 1,333 houses for sale in Boulder County. Meanwhile closed transactions are actually flat. Last year 321, this year 318. So, actually fewer closed deals this September. And far fewer if you do the math to look at these numbers as a percentage of places for sale. Basically another example of how housing market shifted from last year.
Fear Creates Opportunity In Real Estate Markets
One thing I hear all too often, “when is the crash coming.” I don’t think this is a realistic concern. Markets fluctuate. This really seems like the moment to consider that trade up home. Or getting the place you’ve been waiting for. Still unconvinced? Here are my top 3 reasons to buy a home right this moment.
- No More “Roommate Roulette.” Take control of your environment and stop moving in and out with roomies every year or so. You are a good renter, this is exactly what mortgage lenders are looking for when making home loans.
- Personalized snack storage. Or an answer to getting your bicycle out of your living room. I can help you find a home with a garage – you’ll love the storage opportunities. And as the owner of your own home, you can stock your pantry with your perfect go-to snacks.
- Be the Do It Yourself Diva you’ve always wanted to be. You’ve seen the shows on TV and YouTube, now take the reigns and customize your own home!
Still Seeking Motivation As Housing Market Shifted?
Well, consider this. In September of last year, the medium home price in the county was $726,600. Today it’s 712,450. I take two big things from that tidbit of information.
First, while the housing market shifted, the sky isn’t falling. Boulder county home sellers your houses are still retaining their value. But, home buyers, you could get a better deal this Fall than last year.
Better deals. More time to shop. Less competition. Interest rates are high, yes. But there are ways to work around that. A 2-1 Buydown is a great option. Or simply contact me and let’s discuss your needs and wants in this market.