Covid-19 Creates Boulder RealEstate Opportunities
Scary times we are seeing in our country. Today my wife and I went to The Flower Bin to pick up some plants and get our yard going. Everyone was wearing a mask. That’s good news/frightening news simultaneously. What’s this have to do with homes in Colorado?
The last time we had fear in the economy, just recently in 2011, it was also a great time to invest in Boulder Co real estate.
Single family homes offer great liquidity. One smart home buying investment strategy:
- Find your new home
- Rent your existing house
- Purchase your new Boulder house
- Take advantage of a low down payment with owner occupancy
2020 Statistics On Boulder Houses For Sale
Understanding today’s market will help educate savvy investors to make smart purchases. Here’s a glance at the primary market in our community.
Boulder home sales, Year To Date through March increased by 18.4%, moving from 267 sales a year ago to 305 for this year. It will be interesting to see how sheltering-in-place impacts closings.
Meanwhile, active listings for attached homes was just slightly higher in March 2020 vs last year, while Boulder single family home inventory plummeted by ten percent.
The average days on market to contract increased about 4.5 days. Lafayette and Louisville each saw far fewer listings for sale year over year. For all of Boulder county we saw fewer homes for sale paired with higher sales prices.
All the telltale signs of a Sellers Market.
Great Reasons To Own A Boulder House Or Condo
This is a great community to call home. Named the Happiest City in North America. Check out the National Geographic article with loads of good things to say. Hike Chautauqua, dine on the Pearl Street Mall, have an outdoor adventure and listen to the orchestra. That could be one busy day or a month of weekends.
This is as healthy a place to live as it is healthy. Men’s Journal points out the city claimed the title of Healthiest Place To Live in 2015. Read Bruce Barcott’s story of a visit. You’ll be grabbing your roller blades and lycra wear. This is a town where exercising isn’t a chore but the reward.
With three hundred plus days of sunshine you can view a Boulder house for sale on a sunny day practically every day of the week. Just be prepared for the prices. Homes are at a median price point around a million bucks.
You can save a few dollars on your investment property by purchasing in the 82nd most popular city in the USA according to Money‘s 2019 ‘Best Places to Live in America‘ list. The Longmont Colorado home market is much more modestly priced.
Last year the median home price was a tad north of $370,000. The city has a population of 96,000 and a modest commute to Boulder (26 minutes on average).
We’re also known for being one of the Top Brainiest Cities (2010) , Top 10 Cities for Artists and even ranked Best housing market nationwide by SmartAssett. Back in 2010, the statistic was five out of ever six adults had a college degree!
Real Estate: Colorado Springs to Fort Collins Housing BOOM
The Front Range is experiencing exponential home property value growth. All up and down the Front Range. Its not just owners of homes for sale Boulder that are seeing great returns. One community after another is seeing home values climb.
Colorado has been experiencing net positive population growth as more and more new comers relocate to the area. Why?
We seem to have all the right pieces in place. Even the legalization of marijuana has had a net positive impact on our community. For one thing, it adds a good chuck of cash to the tax rolls.
Know Your Options Financing Colorado Homes
When it comes time to buying Boulder real estate, you have some options. If the property will be owner occupied, there are traditional down payment options. FHA only requires 3.5% down payment. Five percent down conventional loans are very common for conforming loan amounts.
In Boulder County that limit is $644,000. In Denver County the conforming home loan limit is $575,000. When you consider median home values, Denver actually is the better place to get a conforming home loan.
Once your mortgage exceeds the conforming limit, you get into nonconforming mortgages. This is where the intersection of Coronavirus and an investment in Colorado real estate can become a little more scary.
Banks are less interested in large nonconforming notes than before the virus impacted the United States. Wells Fargo for instance does not even offer the option at the time of the writing of this post. Expect to pay a higher rate.
Investors should be prepared for significantly higher home mortgage financing rates. About two points higher is common, not unusual. Some lenders suggest bringing a 25% down payment and spending a point to buy down the rate. This strategy can get a savvy investor within in a quarter point of owner occupied buyers of homes in Colorado.
Of course, cash is always king! Click below to start your search for homes in Colorado now!