September Market Update From Boulder County
Happy Fall! Fall in Colorado is one of the most beautiful seasons for the state, and thankfully the panoramic mountain views are getting clearer every day. All that we love about Colorado still remains, including a booming housing market.
Compared to the rest of the nation, the Boulder County real estate market is still going strong.
National Numbers Pending Home Sales
When looking at this graph depicting pending home sales over the last several years, we see consistency, but then a massive dip in sales last year when COVID-19 first hit. However, we've made a full turn-around and national pending home sales are on the uprise again. According to what is a "healthy" market, we're sitting significantly higher as far as pending sales go. Showings Although we're currently seeing a steady number of showings nationwide, we started to see another dip take place starting in April. This might seem contradictory because of our strong buyer traffic, but if there aren't not enough homes to show, these numbers will be affected. However, we have higher reports of showings now than we did in 2019, our last "normal" year before the pandemic. With many U.S. residents wanting to relocate during the pandemic, our showing activity did indeed increase, but it's not as high as it could have been if the homes for sale matched the demand.
Percentage of Homes Selling Over List Price
Nationally homes are still selling over list price, just like here in Colorado, but we are starting to see a slight drop. Although we're seeing sales finalizing at just over 100% here in Boulder County as compared to about 150% nationwide, most real estate is still selling over list price, nonetheless.
New Listings: 2017-2021 In 2020, we saw our expected dip in listings nationally in March and April, when the pandemic really hit. We evened out and saw another dip in the winter months, which is also expected and normal. So far in 2021, we're pretty stable and seeing the "normal" seasonal patterns, which are expected to dip as we approach winter. However, when comparing to 2017-2019, both 2020 and 2021 are substantially behind.
Monthly Mortgage Payment Increase On average, national mortgage payments were sitting at $1,255 as of June 2021, which is about a 20% increase from June of 2020. That's pretty significant in terms of affordability and this jump is due to the elevated home prices because of buyer demand and bidding wars that we've seen for well over a year now. However, as we've reported previously, based on current economic conditions, homes are technically more affordable now than they've been in years.
Monthly Rent Increase Nationally, rental rates have skyrocketed over the last 30 years and will continue rising about 5-7% yearly. If you or someone you know is still renting, a mortgage payment is the better option even if your personal affordability is lower than what a typical Colorado price may be. A mortgage payment is set-in-stone and your rental rate will far surpass what your mortgage payment will be. Additionally, you will gain equity on your home, making a purchase the best option.
Average Days on Market From the time a listing goes live to the time it receives an offer, there's currently an average of 17 days nationwide, which is the lowest we've seen in quite some time.
Average Number of Offers Received On average, homes nationwide are receiving 4.5 offers as of July, which is even lower than months prior. This is what makes our market so tricky to navigate. It's almost guaranteed that your offer will not be the only offer received on a home and there's no telling what lengths someone may go to for a particular home, especially if they've been outbid many times before.
In Summary... ...We're still in a tight sellers' market, but it is softening. Nationally and locally, we're seeing elevated and de-elevated numbers in all the "right" places to make for an extremely competitive and fast-paced market, but regardless, it's the right time to buy due to record low interest rates and to sell due to increased demand. Please don't hesitate to reach out to me during this time if there's anything I can do for you, real estate related or otherwise. I am here for you! Thinking about moving? Call or text me today! 303-520-0070
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