Here are the latest real estate statistics for Boulder County.
We have seen a shift in the market. A few key factors that affect the real estate market have shown a change for the worse in the last few months. Interest rates have nearly doubled in the last six months and prices have risen 20% over the past year. These, taken together have reduced affordability dramatically. The stock market has decreased by over 20% this year and inflation has made everything else more expensive as well. All of these taken together have caused the shift. We are now seeing inventory rise, more price reductions, fewer houses go under contract and fewer showings. During June sales were down 25% from a year ago. Year-to-date sales are down 15.7%. During June 55% of the sales closed at a price above the list price, this is down from 70% in May and 76% in April. The average premium paid for those houses that closed above list was 6.3%, down from 9.6% in May and 11.2% in April. The average sales price in June was 2.6% above the list price. In May the average was 6.2% and in April it was 8.3%.
Affordability is a huge deal! Let’s take for example a home that sold for $500,000 last fall. After a 20% downpayment, the buyer would have a principal and interest payment of $1,701. Fast forward to June when that same house is selling for $550,000 (if you’re lucky) and the interest rates have jumped from just over 3% to just under 6%. The P & I payment on that same house is now $2,602. That is a $900 increase or 52%.
I’m seeing a steady stream of sellers who wished their timing wasn’t quite so bad. Take a look at the full presentation below for all of the details including a spike in price reductions and a reduction in contract activity.
