Boulder Residential Real Estate Supply At 10 Year Low
Currently, there is an incredibly limited supply of homes for sale in Boulder. Statistics point to the lowest number of homes available in the past 10 years. Usually this time of year, we might have 70-80 houses for sale; currently the number is less than thirty. And at the same time, consumer interest in homes is peaking. High demand short supply is propelling multiple offers above list price real estate to be the new normal.
Housing inventory shortage creates Sellers market.
Ours is not the first market to experience this High Demand Short Supply. Several areas in California were reporting similar conditions a few years back. Nationally, senior housing is experiencing short inventories and strong client demand. Emily Study writes on the subject in her Senior Housing News blog. The inventory of available homes has not met expectations for two years now in town.
Why high demand short supply Boulder housing is occurring
Culprits for the run up in values: the local hot economy, low interest rates, pent up demand, low unemployment.
Boulder is one of the strongest regional economies; Colorado is leading the nation (outside of Fracking states). Our strong economic recovery is adding fuel to the sellers market fire. We also enjoy exceedingly low unemployment. People are moving to Colorado for jobs and opportunities. Some traditional powerhouse East Coast states continue to struggle exiting the 2008 Great Recession. By contrast, the Colorado economy is one of the strongest, second only to states with oil and gas/energy development (Dakotas, Montana).
Pent up demand is also a factor in the high demand short supply economics of Boulder/Louisville/Lafayette real estate. Through 2012, there was relatively little new construction. These days, cranes are visible around town. Boulder City Council is making headlines for limiting building heights. Locals are discussing the merits of long anticipated projects such as Boulder Junction.
New construction is coming online, but not necessarily in town. Erie and Weld County will be delivering a huge influx of new construction with thousands of homes planned. Lafayette has several projects in development too, but in the immediate moment, there are no speculation new construction homes to relieve the pressure.
The New Normal
Median home prices are skyrocketing in this high demand short supply housing scenario. Home buyers are well advised to be prepared for multiple, better-than-list price offers on homes. Every Realtor has a story these days. I just assisted long time clients in a bidding war. We were one of fifteen offers on a single family house. My clients won the house with a creative video playing to the seller’s emotions and a strong all cash offer that appealed to the business side of the transaction. This is the new normal in Colorado housing markets along the Front Range.
A few years back, winter was a low key time to find your dream home. Less inventory, sure, but a whole lot less competition too. It’s a feeding frenzy today when a new property hits the Boulder housing market. Today Boulder home inventory is down 65% and consumers are feeling it. And it isn’t just Home Buyer’s experiencing frustration. Boulder home sellers are reluctant to enter the market. Sure, they can sell quickly, but where will they move to? There are just no homes for sale across a wide price range.
Recommended Boulder Real Estate News Posts
- Boulder Economics 101 (2014 article detailing the economy of the city)
- Video and winning in a Multiple Offer Scenario — a true story of clients Ben and Emily
- Buyer Agency; with tight inventory a trusted Realtor can make all the difference
- Different Home Mortgage Options
Real Estate Blogs: Multiple Offers
Lorie Garland gives advice on handling a multiple offer scenario as a seller. In her example she discusses a $250,000 home. I would love to have some affordable homes like that in the area to sell my clients! Bill Gassett is an avid blogger in Massachusetts. Here he expounds on myths involving multiple offers. Bruce Ailon in the Atlanta market writes about strategies for winning a bidding war. Some good nuggets in his article.
Recommended First Time Home Buyer Blogs
The Highland family blogs often on all aspects of real estate. Here they look at the left brain/right brain battle – needs versus wants – of finding the right first home. Keith and Kyle write a solid blog in Rochester; here they discuss five mistakes to avoid. Lynn writes a sharp blog in Coral City, Florida. She created a sharp – and quite detailed post on 20 cold hard facts home buyers should know.
Boulder High Demand Short Supply Of Housing Makes The News