Consider this post a newsletter. It tells you in detail, across the local Front Range, what’s occurring in the Colorado real estate market today.
Do I have any firm statistics for a place like Frisco? No, there I have word of mouth from a fellow Realtor. Their inventory in December was a paltry three properties total. That exemplifies the market here though.
Read on! You’ll see that in Boulder and the northern Denver suburbs every stat is off the charts this quarter. To put it simply, our Seller’s Market has moved from Hot to Red Hot!
BTW, as you navigate this post, follow the links. I’ve blogged extensively the last sixty days on Q1 real property trends in communities as diverse as Boulder, Lafayette, Denver and Thornton. Each section of this post ties back into a previous post with additional information.
What benefits from this blog post? Home Sellers: who may not realize how special this moment is. Home Buyers running into multiple offer frustrations. The general public – who might think this is a great market. IMHO, it’s not that simple to say this is great. Understanding what’s going on empowers you to be better prepared for buying, selling or just grappling with your real estate tax bill (hint: property taxes are going up in 2021).
Colorado Real Estate Market Is Moving!
The new year has started off with a bang. Homes are moving quickly. Just about every statistic from the same month last year is being smashed in Q12021 real property transactions. This First Quarter of the Year may well set records that are never broken.
There are multiple factors, both nationally and locally, driving these trends. Home Mortgage Interest rates started the year in the sub three’s range. When you can get a mortgage at Two Point Seven something, that is very cheap money!
And it wasn’t just a Boulder Colorado thing. Nationwide demand surged with low mortgage rates. Days On Market – DOM or ADOM – have dropped in countless markets. Take a deep dive here, previous blog from January 2nd. Homes are moving rapidly through the list, under contract, sold process.
Covid-19 Impacting Home Buying Decisions
The end is in sight for this terrible pandemic ravaging the United States of America. I saw on the news yesterday that three million citizens received vaccinations in one day. That’s really something. Personally, I have a lot of family and friends and clients who are now vaccinated.
I can’t help but wonder, how will a vaccinated populace impact this intense Seller’s Market we are experiencing? Covid definitely changed the day to day living in Boulder Co the last year. What will happen when the pandemic siege ends?
For now, there are trends indicating a move out of city centers. One client tells me she might rent in Rino – a Denver district – because apartments there are offering two months free rent as a move-in incentive.
There is definitely both nationally and locally a push for more space in the ‘Burbs. Our homes are now doubling as Gyms, School, Office.
Keeping it safe for everyone too. Most county health boards are limiting the number of showing parties at one time (I personally think this needs to be modified). I always have clients mask up and wear gloves for showings. I have extra protective gear if you need some for a home showing! Even the title companies are making it safer with curbside closing options.
Unfortunately Everyone Sort Of Got This Idea Simultaneously
Alas, everyone is now looking for that bigger, roomier home solution at the same moment. Here is my personal experience, working in the $400-$450 price range for a home buying client in Arvada the last forty five days.
- Tuesday – Wednesday – Thursday sending new listings to my client. Her availability is generally Friday mornings and Sunday afternoons.
- Friday, show 3-5 homes. We viewed a mix of attached and single family property on Fridays. A few weeks into the process, she started making offers.
- Offering 104% or better and covering shortfall in the appraisal. That’s a pretty good offer except…Except when you run into a dozen to two dozen other offers and everyone is offering at least as much. This happened several weeks in a row.
So what changed? We found an opportunity and jumped. Q1 2021 real property Front Range Colorado home buyers need to be quick, patient, prepared. Sometimes all at once. You’ll also want to be open to making concessions to win the bidding process.
I feel like I should keep some florists in Boulder on speed dial. So I can send flowers to the agents whose buyer’s lost out on my recent listing in Lafayette. It’s more and more common to have multiple offers!
As I pointed out right off the bat, this is not limited to Boulder Co. It’s happening across the country, with roots in The Great Recession, if you can believe it. I blogged on the shortage of homes earlier this year.
Spring Has Sprung In Colorado House Market
If I were a Boulder realesate home seller, I would not wait for true Spring to place my property for sale. I wouldn’t wait for summer. This, right now, is the market to get your house available and sold.
Tell you a little secret. Multiple offers? Nothing new there. Two dozen offers on any given house? That is straight up totally unusual. In my twenty five years experience working in realestate I can tell you sincerely: this is a first for me! Heck, that client in Arvada? The listing agents were telling me they too had buyers meeting the same outcomes and it is frustrating for all.
When a home comes along and twenty offers materialize, that really means nineteen families were unable to buy a home that weekend. There just is no inventory out there.
Q1 2021 Real Property Inventory Plummets
Clearly the big story of the year. Extensive post focused on Boulder here. Let me share a graphic from that story:
Last year there were more than twice as many homes for sale in Boulder CO in January as this year. Last year was already considered a low inventory situation. Interest rates were lower this year than last. Low rates add fuel to the fire. Median home prices were already considered high. Pile on low rates, increased demand and take away inventory. That’s a recipe for hyper values growth.
Probably sounds great. Unless you are planning to sell and then buy. Your trade up home may no longer be within your budget in Boulder. Or, you may find the market moving so fast, there is a real possibility of not having a place to move to after you sell. Or, you may simply decide its best to stay put — which is happening and further reducing home inventories!
Low Inventory Fast Sales All Over Creation
It’s not just one city.
What’s true for houses for sale Boulder Co is also happening in Denver, Colorado Springs and Fort Collins. Visit a major metropolitan area and you’ll experience the same scenario. Home values climbing rapidly for Q1 real property. DOM down to a few weeks. The absorption rate – how quickly available inventory of homes are selling – under a month. Take a very deep dive on a Denver suburb.
Thornton is a pretty big place. Population over 136,000. Located about fifteen minutes north of Denver. More listings than say Boulder, but fewer than Denver. I prepped that link for a client. Having the best knowledge of the marketplace gives you the tools for pricing your home for sale or being ready to successfully compete with multiple offers for your new home!
Like homes for sale Thornton Co, this is also true in Boulder County. Quick read highlighting the County Market Statistics from January in Boulder.
That low inventory is the Big Story of our times. Lack of homes is driving buyer home buying concessions. It’s driving median prices northwards while cutting days from list to close. I can’t emphasize enough: there are just not enough homes in the market to satisfy demand. But.
And it’s a big but. At some point the pandemic will end. Sooner I think than most realize, especially in the USA. When that happens, I wonder that having more house will be all that important. I think having more experiences (travel, time with friends, simply dining out) will trump the need for more house.
Until then, Boulder home buyers, be ready to compete! Here are a few last suggestions for making the best offer against multiple offers on your dream home.
Last Word From Bob Gordon Boulder Real Estate News
That’s it. thank you for taking the time to read the post. Feeling motivated? Leave a comment below. Always great to see my blogs generating a little conversation. Or, if you are ready to make a move, contact me. I’m here to help you with your Colorado real estate needs!
I’m forever grateful for the referrals to new clients. So far this year, I’ve had two Realtors and a past client refer me to new clients! Your REFERRALS are the soul of my business and I really appreciate you!
If this will be our first transaction working together, know that I’m passionate about my career. I’ve taken a lot of additional education to be the best at what I do. I know real estate can be emotional. Heck, like so many of you, I’ve moved in the last decade. So I know first hand about everything from getting my home ready for the market to negotiating with the seller. And then enjoying the big day, moving into the new house. Or the even bigger day when you say, “Finally, last box unpacked!” LOL. If you’ve moved, you know there always seems to be some box you just never unpack for whatever reason!
Cover Photo: Bob Gordon hanging out on the patio on a warm Colorado Spring day.
Talk to you soon! ~ Bob