Median Home Prices For Lafayette CO
Median home prices for Boulder homes for sale are climbing. But, you know this – especially if you are a long time reader of my blog, Boulder Real Estate News! Let’s take a deep dive on one market. Lafayette CO real estate! This post will look at the most recent sales data from March 2021.
First things first. The data. The statistics in this article come from IRES Information Systems. This is the multiple listing service that traditionally services the Northern Colorado market. Lately, a good number of homes are listed in ReColorado. That MLS provider is more Denver-centric.
The First graph highlights that for the last three years, Lafayette median home prices have been outpacing the entire MLS.
A couple of high points to note. The last bit of the chart shows an uptick. That’s for March 2021 – the most recent data. Driving this, (a) it’s the Spring market, so values tend to climb in busiest time of year. And (b) we are in an intense low inventory/high demand Seller’s Market.
The Lafayette median home price today is $557,000.00. That’s an increase of nearly twenty percent from last year’s lows. Low inventory and high demand are contributing to a jump in home values.
You can see in the middle of the chart, around the Fall of 2019, first the general MLS and then Lafayette fell into a low plateau. Things actually seemed to be calming down just before the pandemic changed everything. Then the market leaps upward in May. That giant leap represents the reopening of our country and county.
You remember, right? Unable to find toilet paper anywhere, locked down in our homes, quiet roads. Lafayette houses for sale were suddenly being shown again and it seemed like everyone wanted more space for home gyms, home schooling and working from home! That pop of demand sent median Lafayette home prices to unheard of territory.
Lafayette CO Months Supply of Home Inventory
This is a really interesting statistic. You have look back to Spring of last year (for a month) or winter of 2018 to see the entire MLS really having more inventory than Lafayette. How does that impacts the market? It used to be you could drive a little further and get more home. Or find more homes.
Today, it doesn’t really matter how far you are willing to drive. Lafayette CO and the entire northern Colorado MLS simply have no homes for sale. Well, not that many. About a 1/2 month’s supply. That’s a rather minuscule amount of homes for sale.
Clients seeking to buy a home in a market with such limited inventory should be ready for multiple offers. And be ready to spend more than full price, as evidenced by this graph:
Median Percent of Original List Price Versus Sold Price
Whenever I write these posts, there is generally one graph that really grabs my attention. This is it for me today. The last three years, the average home in the entire Northern Colorado MLS had a median sold price at or below 100%. That would be the norm. Normal went out the window in January of this year. Lafayette saw median prices at 100.1% of list. By mid January, median sold prices were north of 100%.
Lafayette Co median percent of original list price vs sold price is up nearly 4% versus 2018 and 2019, when comparing Year over Year data for the month of March. Lafayette CO Home Buyers can expect to pay 103.6% of list price.
Right now the entire region is closing at a median value of 101.8% with Lafayette getting 103.6%. Forget last year for a moment – because we were all in lockdown. Compare this March to 2019 and 2018. In those years, same month, the median sold price for Lafayette Colorado homes was 100%. We are nearly four points better than that today.
That’s a stunning change to the marketplace!
Up 7.6% For Lafayette Median Price Per Square Foot
The last two years running we have experienced an increasing price per square foot for Lafayette. This year’s value is $269/square foot (median). That’s an increase of seven point six percent year over year.
Inventory of Lafayette Colorado Homes For Sale Plummets Nearly 64%
March homes for sale: 21. That’s sixty three point eight percent fewer homes than a year ago. It’s 45 fewer houses than two years ago. But, the population is growing in this region. The most recent stats say we have over 12% more people living in Boulder County than a decade ago. More people meets fewer homes and you get houses selling for over full price. Look at it visually:
It’s like we drove over a cliff, the change in available inventory from a year ago.
Making The Boulder Real Estate News: Contract Negotiations
For a little perspective on how all this data intersects with contract negotiations. Here’s my two cents. For home buyers in this market, you need to be ready to pay over full price and encounter difficult decisions when making an offer.
Appraisals are having a difficult time keeping up with pricing. It’s very likely there will be a shortfall between the appraised value (required for the bank to issue the mortgage) and the agreed upon sales price (what you and the Seller come to terms on for price). Sellers want that gap covered. What is your comfort level with bringing extra cash to cover the shortfall? Something to think about before you make an offer.
New construction homes allow for an inspection and punch list, but you cannot cancel a sale over an inspection objection. Why do I mention this? Well, some buyers are opting to give up inspection objections to win bidding wars. Or at the very least, limit their home inspection. If reading this is difficult, just imagine having this conversation as we write an offer on your dream home!
A decade ago, homes were taking six months to sell. And contracts might be months long. No more. The latest statistics suggest a little over thirty days for the entire state of Colorado and as little as two weeks in metro areas such as Boulder and Denver. Alongside quick moving deals, Sellers want to stay after closing to have time to find and contract for a new home. Can you carry two home payments to facilitate something like this?
Other clients are opting to make the earnest money hard. That is, no matter what happens, the seller gets to keep the earnest money. Even if the sale fails for a legitimate reason.
We are in a really unique market. When you consider how few homes are for sale, that houses tend to sell for better than full price throughout the MLS, that interest rates are super low and that we are utilizing our homes for so much more — when you consider all of this, be ready to make concessions to win bidding wars. That’s my advice in this unbelievable market.