I get this one a lot. is this a good market? Should I sell my home now? Or maybe a variation of, “We’re thinking about renting first to get to know the area, and then buy.” Or even, I’m saving for a down payment, I’m not sure now is the time to buy.
So, what’s the market like?
Thanks to my good friends over at Fidelity Title, I have a handy worksheet to look over and share with you today. The market is right on the edge between a Sellers Market and a Buyers Market. Technically, as inventory stands now, there is more demand than opportunity. If this were to continue Sellers would be in the driver’s seat.
At the same time, the median home price is hovering around one and a quarter million dollars. That means there are an equal number of homes for sale in Boulder for less than that price as well as more than that price. My gut tells me that homes priced under the median home value will be more weighted towards a Sellers Market. Why? Affordability – there is always a bit more demand for the opportunity to buy into Boulder’s Housing market.
Likewise, homes at the upper end of the price range, with the current market hovering just on the edge of a true sellers market are apt to experience a different route to “Sold.” it might entail more days on the market or more intense marketing. Some will of course sell quickly (even immediately). But already last year we were seeing price adjustments in the marketplace. So the interesting data will be – does inventory increase as Spring selling season arrives — and we move away from a Sellers Market or does inventory remain tight and the market moves more firmly away from neutral/buyers market territory at all price points.
Simultaneously playing into all of this are home mortgage interest rates. And rates are good. I’ve been hearing of folks getting deals in the three point something range. That’s a great place to be – even the low fours are excellent mortgage rates. Look, low rates are going to give you home buyers two super options:
- You have more buying power. Because rates are low – your payment is lower. So you can max out your limit and buy more house. This is a good strategy because the more home you can buy, the longer you can live there and not worry about selling. So maybe you take advantage of rates to buy a 4 bedroom, planning to have children in the next decade and being well prepared. You might never move!
- That low rate lets you stay on budget and stop being a renter and start creating an asset. Take advantage of the low home mortgage rates, buy your first home (might be a condo or a new subdivision or whatever you desire). Because rates are low, you now qualify in this crazy Colorado market for the home you want!
Low mortgage costs will drive buyers into the market. In a popular area like Boulder, the improved interest rates could even impact the sellers/buyers market. If enough people move into home buying territory, it could push the market over to a definitive sellers market.