The Boulder Real Estate Market in April of 2021
Year-over-year for the month of April, there was a 54.8% decrease in the total number of available listings for detached, single-family homes in the city of Boulder. In April of 2020, home inventory stood at 217. Last month, that figure dropped to just 98.
In a balanced market, there would be six months of inventory. However, Boulder has just 1.1-months of home inventory, creating a clear seller's market. Accordingly, the average sales price increased to a whopping $1,885,264, and sellers are receiving an average of 103.2% of their asking price.
Looking at Boulder County as a whole, the average sales price continued its march into the million-dollar range, reaching $1,170,516 in the month of April. That's a 69.9% increase year-over-year.
When is the Housing Marketing Going to Crash?
Google reported a 2,450% spike in this exact search question just last month. Considering the rampant pace of the Boulder real estate market, as well as the entire housing market across the United States, it's a valid concern. Especially if you're considering buying a home right now.
However, industry experts are not calling this a bubble, nor predicting a crash. Here are five very reasonable reasons why:
- Year-over-year, the number of available homes for sale is drastically down and nowhere near in the ballpark to keep up with the current buyer demand. This creates competition and drives up prices.
- Mortgage interest rates remain the lowest in decades, helping to offset the increase in prices and allows buyers room to bid higher without overextending their budget. And while experts predict an increase in rates by the end of 2021, it's not likely to vastly affect home buying.
- Demographic trends are bringing more buyers to the market. Some buyers looking for bigger homes and outdoor spaces due to the pandemic. And Millennials are hitting their prime, home-buying years. Plus, Boulder was named the best place in America to call home according to a 2020 US News & World Report.
- New home builders can't keep up with demand either, possibly due to the current cost of lumber which hit a new high of $1,300 per thousand board feet. Last year, the same amount of lumber was just $328.50.
- Qualifying for a mortgage has become a much more rigorous process. Your credit score needs to be stellar and lenders can and will scrutinize every aspect of your finances to ensure you're worthy of loan approval. In comparison, prior to the last crash, mortgages were often handed out regardless of income, creditworthiness or down payment size.
To learn more about buying and selling in a low-inventory market (that's not headed for a crash), check out our previous blog discussing the state of the market, mortgage rates and the ability for buyers to earn equity now.
Looking to Buy or Sell a Home in Boulder?
If you’re thinking about buying or selling right now, feel free to reach out to a PorchLight agent. We now have a new office in the heart of Longmont, so we're able to assist even more clients with their buying or selling journeys. Between their own expertise and collaborating with our team of 150+ brokers, our agents truly have the connections needed to get you the best deal or the best offer.
Want to sell? We offer a comprehensive Comparative Market Analysis (CMA) report. It looks at comparable homes (comps) that have recently sold, current market conditions, along with your home’s location, age, condition, size and other factors such as upgrades you've made since living there. If you want a clear picture of your value and equity, a proper CMA is your jumping-off point.
Until next month's Boulder real estate blog post, best of luck and remember to real estate wisely with the help of PorchLight!
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