The Boulder area real estate market is hot.
The demand for homes below $800,000 in Boulder and below $500,000 in the surrounding areas is unprecedented. It is being driven by a severe shortage of listings along with significant interest from buyers, many of whom are moving into the area. It is not unusual for new listings to have 10 or more showings the first day and to receive offers from five or more buyers. Home prices are rapidly rising, and the days on market (DOM) are declining. Buyers are dropping contingencies such as inspections, and cash buyers are the most likely to have their offers accepted.
The average price of a single-family home in the city of Boulder is $939,957, up from $763,632 at this time last year. The median price is $746,516, up from $640,000 a year ago. These are amazing numbers. Homes in Broomfield, Lafayette and Longmont have also experienced significant appreciation in the past 12 months.
The DOM for homes in Boulder is down to 57 days, 26 percent below this time last year. The hottest market measured by DOM is Broomfield, where listings are sold in fewer than 45 days. Louisville’s DOM is equally impressive at 54 days.
The ultra-luxury market is heating up. Single-family homes in Boulder above $2 million are selling. Six of these have been sold and eight others currently are under contract. This is double the number of ultra-luxury transactions from last year at this time. Active listings are also up 39 percent, so ultra-luxury buyers have a larger selection from which to choose. Unfortunately, the ultra-luxury market outside of Boulder is not experiencing the same type of demand.
Conventional wisdom indicates that as prices rise, more homes will be listed for sale. Unfortunately, the number of homes currently being listed is not meeting the market demand, resulting in upward pressure on prices. This bodes well for sellers. However, it is a very challenging market for buyers. They need to have a solid plan and be ready to act when they find the right home.
Waiting until the market stabilizes may not be a good plan because by then a lot of prospective buyers may be priced out of the market.
This is an exceptional time to sell, and it may also be the best time to buy if you can find a home that meets your needs.
David W. Scott heads the Scott Group at Colorado Landmark Realtors. Contact him at 303-443-5163 or email@example.com.