The March Boulder median home price jumped from late last year to today. To put it gently. For three years, we saw a steady, albeit high, median home value in Boulder. About one point three million. Give or take a few hundy K. That changed.
March median home values are an eye popping two million dollars.
Inventory Levels Plummet Along Colorado Front Range
One of the biggest impacts on the local housing market, quite simply, is a lack of homes to buy. New listing inventory is exceedingly low. This lack of housing is resulting in multiple offers becoming the new normal. I don’t mean like two offers. More like twenty offers on entry level priced houses. And with buyers waiving all sorts of contingencies. Everything from the appraisal to the inspection.
I’ve previously blogged on inventory levels plummeting by two thirds of the usual numbers making Boulder real estate news headlines. Quick recap here. In January, the number of single family houses for sale plummeted by 376 units from the same month, a year ago. This has been true both in Boulder, the county and nearby communities. Denver Metro, is experiencing similar gyrations to the market place. Thornton, to the east of i-25, same thing.
With no inventory and all these bidding wars, Boulder median home price increases are the natural outcome. Boulder being Boulder, our median prices are now sky high – north of two million bucks!
Low Home Mortgage Rates Could Be Changing
With the inauguration of a new president, and a new $1.9 trillion dollar covid relief package, there is lots of talk of inflation. I’ve noticed this at the gas pump. Prices are up. Home Buyers will notice it on their mortgages. Rates are now trending around 3.25%, significantly up from the two point seven five range that had been prevalent.
This is good and bad news. Yes, home buyers will bemoan the raising rates. However, higher rates might slow some of the housing gold rush. That would give first time home buyers better opportunities to get into the market. As rates increase, buyer demand might ease and in turn we could see the Boulder median home price ease up.
Listings: Boulder Median Home Price Jumps
Late last year prices started moving northward. It was sudden and definitive. I don’t see the town suddenly becoming less popular, so I think these price changes are here to stay. Well priced listings are at a premium. What Boulder home owners can expect: multiple offers and settling at a price above list, with many buyer contingencies waived or modified.
What Boulder home buyers can expect. While more inventory generally comes to market this time of year, so do more home buyers. Atop the already staggering demand. Be ready to compete on any give home for sale.
Four Million And Up
Pictures are worth a thousand words. So check out the graph below. We are now seeing homes over $4,000,000 coming to the market and selling. It seems just a short while ago, sales over a single million were a big deal in this town. With prices going sky high, I think we’ll see lots of families just decide to stay put. Someone might be up a good deal on paper, but where would they move? Unless moving out of the city, the trade up home they want is also, suddenly, quite expensive. Long term residents will be apt to stay put in their affordable mortgage payment!
For home buyers seeking more affordable alternatives, there are options around the county or down highway 36 towards Arvada, Broomfield and Westminster. Be warned: we are seeking fierce bidding wars on entry level homes there! I’m talking twenty offers for houses in the $450K range. And these are going under contract for as much as twenty percent over list price!
Boulder Neighborhoods Worth It
Don’t let the numbers scare you though. There are plenty of great places to call home in town. Check out my Boulder Neighborhood Guide to find your perfect place to call home. First time home buyers may also find the post I recently wrote on contracts helpful. It walks through what to expect. Or, give me a shout to find your perfect place to call home.
I’m Bob Gordon, Boulder real estate specialist and I look forward to sharing my marketing expertise in getting your home sold for top dollar!
Another Glance At Inventory Impacting Median Home Prices
The Boulder Area Realtor Association – soon to be known as the Longmont Realtor Association following a recently approved merger – supplies this helpful graphic.
You can see in this graphic we are hitting low inventory unlike anything we have seen in the past. The lack of homes for sale is seriously impacting the Boulder median home price.