Low Inventory Prevails in Boulder
January numbers still show the effects of demand outpacing supply in the city of Boulder and across the county, but there were upticks in new listings for buyers to choose from. And with new options on the market, there was renewed buyer competition.
In Boulder, the average price for a single-family home increased by about $50k month-over-month, coming in at $1,607,325. Looking at the county as a whole, prices also jumped from $985,387 in December to $1,038,943 last month.
Taking a closer look at the city of Boulder, days on market didn't change much month-over-month, but 59 days until the sale of a single-family listing is an 18.1% decrease year-over-year. Townhouses and condos are also selling for 2.8% more and in 36% fewer days year-over-year.
Inventory of homes still available for sale by the close of the month continues to be an indicator of price and competition levels in the coming months. For single-family properties, January's figure was 58 properties which is a 62.6% decrease year-over-year. Attached inventory came in at 28 listings, down 78.8% year-over-year. Combined, we have half a month of inventory–a balanced market is 6 months.
Across the county, days on market didn't change much for single-family listings month-over-month, however, it's down 27.8% year-over-year. Meanwhile, the townhouse and condo market slowed from 35 days on market in December to 51 in January—a year ago that number was 64.
In addition, county-wide inventory at the close of January was down significantly compared to last year. There were 120 single-family homes which is a 60% decrease, and there were just 43 attached listings, down 75.8% year-over-year.
As we approach spring, more homes typically come on the market. We'll see how things shape up in the coming months.
For now and with so few homes on the market, it's always best to work with an experienced real estate agent who will help guide you through buying and selling for top dollar. 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.
To view our report on Boulder real estate market stats for January, click here.
Mortgage Payments & Interest Rates
Did you know? The Federal Reserve is planning to curb rising inflation by pushing interest rates higher in 2022.
Lawrence Yun, Chief Economist and VP of Research at the National Association of Realtors, 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.
When buying a home, your loan principal and interest payments will change depending on the interest rate you lock in with your lender. A quick example—you buy a home for $500,000 and put down 20% or $100,000. You then secure a 30-year loan for the balance of $400,000.
At 3% interest, your base monthly mortgage payment will be $1,686. If rates go up just one percentage point, you'll pay $1,910. That's an extra $224 a month which can be significant for some buyers.
Take a look at the chart below for more numbers, you can also download a PDF to keep handy.