The Boulder Real Estate Market in December 2021
December was a relatively quiet time for the real estate market in the city of Boulder. Compared to the prior month, fewer detached, single-family listings came on market and closed sales increased by just one. The average price dropped by about $137,000—from $1,694,535 in November to $1,557,840 in December while days on market increased.
The pattern repeats when looking at attached homes, the townhouse/condo market. There were just 22 new listings, down from 35 the prior month and sold listings remained the same. The average price dropped by over $78k, coming in at $552,956 for the month. One interesting area in the stats is days on market. That actually dropped to 42 days compared to 70 in November. Buyers and their agents are getting deals done.
Now, let's talk big picture. Compared to December of 2020, new listings for single-family homes are down 40% and average prices increased by 18.2%. Looking at year-to-date, all of 2020 versus 2021, new listings dropped by 10.7% while sales increased by 8.7%, possibly causing average prices to jump by 23.5%. If you're a homeowner, your investment is doing well and you're likely swimming in equity.
Across the county, There was much of the same with fewer listings on market, fewer sales, and the average sales price for single-family listings dropping back under the million-dollar mark and coming in at $985,387 for December. Still, compared to December of 2020, that's a 15.4% price increase, as well as a 27% increase when looking at all of 2020 versus 2021.
Going into January, inventory for the city of Boulder stood at just 45 single-family homes for sale, or 0.4 months supply. Across Boulder County, that number is 111 homes and 0.3 months supply. Historic lows are an understatement.
No matter what happens in 2022, it's always best to work with an experienced real estate agent who will help you make smart buying or selling decisions. At PorchLight, agents have the connections (including around 200 fellow experts in-house) it takes to find a home that fits your needs or a buyer who is ready to make a strong offer and close without delay.
To view our full report on Boulder real estate market stats for December, click here.
Predictions for the 2022 Real Estate Market
According to the experts from the National Association of Realtors (NAR), here's what will shape the U.S. housing market in the coming year.
- Increased Interest Rates – To curb rising inflation, the Federal Reserve is planning to push interest rates higher. Lawrence Yun, Chief Economist and VP of Research at NAR, predicts that 30-year fixed mortgage rates could increase to 3.7% by the end of 2022–other forecasters predict as high as 4% which corresponds with the pre-pandemic rate. While any rise in mortgage rates reduces buying power, the historical average is 8%. Just a little perspective for you.
- More Homes on the Market – With supply chain woes predicted to ease and lumber prices easing (yet still in flux), the cost for new construction will likely lead to more new builds entering the market. In addition, pandemic-related mortgage forbearance has ended, and some homeowners will need to decide their next steps–stay and work with their lenders or cash out and sell.
- Strong Buyer Demand – As we've seen month after month, home sales have been outpacing new listings continually draining overall inventory. In Boulder County, inventory is currently at 0.3 months supply while a market with a greater balance of power between buyers and sellers requires six months of home inventory. While demand will continue to be strong, affordability could become an issue for some buyers.
Of course, the Boulder real estate market has been anything but predictable over the last two years. If you're thinking about buying or selling, your first step is to talk to your agent. They can walk you through everything, provide specific information for any neighborhood and help you navigate whatever comes next in this volatile market. If you don't have an agent, get in touch and we'll match you with one of our experts.