It’s April Fools Day, but no jokes here. The Boulder real estate market has slid into unprecedented territory. I don’t get to use that word all too often. Unprecedented.
It’s an apt description for what’s happening at the moment though.
We are experiencing tighter home inventory levels than ever before, combined with intense home buyer interest. And while low home mortgage interest rates prevail, we can expect to see a tightening market lacking inventory of homes.
Realtor Mike Malec with Re/Max of Boulder produces some sharp graphics for the Boulder Area Realtor Association. In this graphic he is showing us the six week rolling average of Boulder Under Contract real estate transactions.
The percentage of homes under contract has spiked. We are in excess of 65% of inventory under contract. That’s some rarefied air we’re breathing at that level.
This graph really tells a great story. First, you can see that during the time leading up to the Great Recession (caused by the mortgage crisis) only about 22% of homes were going under contract. Why? What’s missing in the picture is the immense inventory. At the time, we had plenty of homes for sale. Stacks of houses waiting to be sold. It was a Buyer’s Market back then.
During the Two Thousand and Teens, with a Seller’s Market in play, we consistently got homes under contract. Inventory was decreasing during that stretch as well. About 2 years ago – under contracts started to falter. you can see the line was dipping. Then with the pandemic and into 2021 we have seen fierce interest in homes.
Multiple offers are a big part of the picture. Ask around and you’ll hear stories of ten, fifteen, twenty competing offers, especially in lower more competitive price points. Or more affordable communities such as Thornton and Arvada.
Since the start of this year, the percentage of under contract homes has – to put it quite simply – gone stratospheric. And this is occurring throughout the Denver metro area marketplace.