Highlights:
Sales Reach High Water Mark Since 2007 – The Average Property Sold for 4% Over List Price
Real estate sales in Boulder County continue to be very strong. There were 625 sales in June, which is the highest number for the month since 2007. It tied the highest sales total for any month over the past nine years with July of 2013. Year-to-date cumulative sales are up 36% over last year and median prices throughout the county (both single family and attached dwellings) are up 21% from a year ago. On average properties sold for 4% over the list price, this is the highest I have seen in my time tracking the local market. Interest rates are up just .3% since January and are just above 3% for the most qualified borrowers. Despite the strong sales, some buyers are showing fatigue in this ultra-competitive market and are starting to pace themselves or deciding to rent and hope for an easier time to buy in the future.
To view all of the statistics in charts along with commentary and trending, view the slideshow below.
If you happen to be reading this you already know that the real estate market in Boulder County is unusually strong. Multiple offers are prevalent, prices are rising quickly and houses are selling quickly. But are all price ranges equal in their strength? This may be helpful to set appropriate expectations for both sellers and buyers in the Boulder area.
Currently 62.5% of all residential listings in Boulder County are already under contract.
The Boulder County average year-to-date is 22 days.
Inventory Absorption Rate measures how quickly the inventory of homes is getting turned over. I used the sales rate over the past six months to calculate how long it would take to sell all of the current inventory of homes (this includes active, active/backup and pending). The National Association of Realtors has said that a balanced market, neither a buyers market or a sellers market, has an absorption rate of six months. The average for Boulder County is 2.9 months.
The average sale from January through today, June 25, 2021, closed for 2.2% above the listing price.
While the market is strong throughout all price ranges, it is clear by looking at all three of these statistics that more modestly priced homes are enjoying a stronger market than the higher price ranges. This is especially true for homes over $3 million. Buyers in that price range have a variety of homes to view and consider. This is not true in the lower price ranges where homes sell so quickly that at any one time there is not much to look at.
This solid investment property includes two 3 bedroom, 1 bath units. Each unit has a two bedrooms on the main level, a garden level with a bedroom and a large, laundry utility room. Each side has a private backyard. The rents are very low and tenants have lived here a long time. Income listed is actual, not potential.
More photos and videos at www.MeadowDuplex.com
The normal method of analyzing statistics is to look back one year and see how the current month compares. Because of the pandemic, going back one year doesn’t provide useful information. Looking back further we see that total sales are lower than 2019 but slightly higher than May in 2016-2018. Inventory is still very low, and buyers are highly competitive in their offers for the listings that are coming to the market. The graph below shows the month-end inventory over the last 8 years.
Offers are coming in stronger than ever. In May 66% of sales closed for a price higher than the list price. Presumably, multiple offer situations. Of the properties that sold for more: the average premium paid was 9.78% or $69,355, the median was 18.3% higher than list and the top five sales above list price as a percentage were 29%, 30%, 32%, 36% and 50%. In most cases, homes are being listed where past sales justify the price. This means that values are rising quickly, and we are most likely going to see appreciation well into the double digits for the year.
Broker/Owner
Kearney Realty Co.
303.818.4055