This blog post on Boulder Colorado experiencing tight inventory was first published in October. Actually this was the very first blog I wrote. Since then, Interest Rates have INCREASED and Inventory of homes has TIGHTENED. So, when buyers ask, when is the best time to buy, the answer is right now before this trend continues. BTW, I have updated this post twice since it was first published. And I have been blogging daily, nonstop, since this first blog.
Dramatically Reduced Housing Inventory
This Fall, Boulder, Colorado is experiencing a dramatically lower level of housing inventory from the previous year. This reduction of homes available, especially in the entry level price ranges, is creating bidding wars and conditions almost similar to a Seller’s Market. It is not uncommon in October of 2012 for homes to receive multiple offers and sell for full or even better than list price.
Contributing Factors to Boulder’s Hot Market
What’s driving this change? Lower interest rates are certainly a factor. Today, home buyers are able to get loans with a thirty year, fixed rate of 3.5%. Low rates allow entry level and trade up buyers to afford more house and many consumers are taking advantage of the excellent rates to find a home.
Rental Market Up
Also contributing to the tight inventory, is a booming rental market. It is more difficult today for buyers to qualify for financing. As a result, many who might have been buyers in years past, are today renting. As the rental inventory in Boulder has dried up, Owners who might otherwise sell, have been instead making their houses into rentals and getting fantastic returns on their investment. And consequently, fewer homes were listed during 2012.
The attached graph highlights the change in inventory. You can see that from just a few years ago, the number of homes for sale or Months Supply Inventory (MSI) in Boulder is dramatically reduced.
Reduced inventory, combined with super low rates and Boulder’s strong economic position is creating a mini-housing boom in the region.
To view properties for sale in Boulder today, visit my Home Finder. What is your impression of the real estate market where you live? I would enjoy hearing about your impression of the market, whether here in Boulder, Colorado or elsewhere.
Boulder Colorado experiencing tight inventory then and now
This is the second revision to my post on Boulder Colorado experiencing tight inventory. In the 15 months since I first published this post, inventory has plunged. In all of 2013, we had half the number of homes for sale as 2006. Bottom line: buyers need to be aware, there are far fewer homes on the market today, post recession.