The Power of Supply, Demand & Interest Rates
Across Boulder County, the real estate market saw another uptick in new listings with 379 single-family homes coming on the market in April, compared to 337 the month prior. The number of sold listings also increased, but only by 11 homes. Accordingly, median prices actually dipped last month, coming in at $850,000 versus $899,500 in March.
Prices did rise in certain county markets, including Louisville, Longmont and Erie. But prices fell slightly in the city of Boulder
Taking a closer look at Boulder, inventory increased yet again to 142 new single-family listings, up significantly since February when there were only 88 new listings.
With more options to fulfill buyer demand, prices came down from $1,357,000 in March to $1,325,000 in April. Sellers also received just 97.6% of their listing price as inventory and higher interest rates continue to suppress the astronomical growth of the past.
More homes for sale also gave buyers more time to shop and days on the market increased by 9 month-over-month to 55 days.
And with April closing with 3 months of inventory available across the city (211 listings), up 150% compared to the same period in 2022, Boulder is officially halfway to a balanced market.
As for townhomes and condos, the attached market, prices dropped again from $549,000 in March to $514,500. Sellers still received 100.1% of their asking price and days on the market decreased significantly from 51 to 34. And that was with a slight decrease in new listings which shows that no market is truly cut and dry completely based on inventory.
Looking at Boulder County, the decrease in median price for single-family homes also came in well below 2022 levels for the same time period when the median was $975,000 which is great news for buyers and likely takes into account today's higher interest rates.
However, it's not all doom and gloom for sellers. There's still plenty of demand and competition in certain markets. Just down the road from Boulder in Louisville, the median price for single-family homes increased from $936,367 in March to $960,000 in April. While inventory increased from 17 to 21 month-over-month, sales also increased from 12 to 21 homes.
Meanwhile, Longmont's inventory remained relatively flat while sales increased from 74 in March to 91 in April. With that bump in demand, prices ticked up slightly from $603,000 to $625,000. And in Erie, inventory decreased, sales remained at about the same level and single-family home prices increased to $775,000.
As the data showed last month, more inventory in the Boulder market is creating a more balanced environment while buyer demand continues to drive prices up in certain areas. Whether buying or selling, this goes to show why it's so important to work with an experienced estate professional who understands the nuances and can help you navigate today's market successfully.
Understanding the Home Buying Process
Getting into the real estate market may seem like a lot to take on. It can be a lengthy process with important steps, key deadlines, big decisions to make, and if you’re not professionally represented, a lot of stress.
Before you even get started, it's a good idea to understand the basic phases that you'll experience when buying or selling. Here, we give you a brief overview of what to expect, as well as what a PorchLight agent can offer to give you an advantage during your transaction.
Start the Mortgage Process – Connect with a reputable lender and complete the process to be pre-approved. This is one step beyond being pre-qualified which only requires basic info about your income and expenses. The pre-approval process is more comprehensive, giving you a more accurate budget to use when house hunting.
Choose a Real Estate Agent – The right agent will guide you based on your criteria, budget and preferred location. At PorchLight, our agents know the local neighborhoods inside and out. They'll show you homes in your favorite areas, as well as some that offer a similar feel but with homes that might fit better within your budget.
Find Your Perfect Home – We use RealScout which pulls listings directly from the MLS every 30 minutes. You'll receive email or text notifications as soon as homes that meet your criteria and feature preferences (hardwood floors or a yard) become available. Then, browse listings and attend open houses or schedule showings.
Make an Offer – Work with your agent to prepare an offer. They’ll write, submit and negotiate on your behalf. Currently, the market is highly competitive due to low home inventory, so be sure to discuss smart strategies with your PorchLight agent who will help you gain the advantage and submit the strongest possible offer.
Come Under Contract – Once your offer is accepted, both sides of the deal will sign a contract, basically stating that you agree to all the terms that will go into purchasing the home. You'll provide your earnest money (sort of like a good-faith deposit), and the home will be held in escrow until closing.
Do Your Due Diligence – It's time to set up an inspection to ensure the home doesn't have any major issues, along with an appraisal of its value. You'll also want to choose home insurance, secure the title and handle other paperwork. Your agent can guide you through it, and even provide a checklist to keep you on track.
Close and Get the Keys – Once you’ve secured your home loan and are cleared to close, funds are transferred, paperwork is signed, and the keys are yours. Keep in mind that your lender may check your credit up until the day of closing. Leaving a job, making a major purchase, or otherwise disrupting your finances can still lead to a loan denial at the 11th hour.
