A Little Bit of Everything as Summer Comes to a Close
Summer is typically a slower time of year for real estate. The city of Boulder reflected that with a steep decline in single-family home sales and an increase in the number of days properties remained on the market. However, that wasn't the case in the attached market for the city—or in certain areas of Boulder County. Let's take a look.
In Boulder, the number of new single-family homes for sale increased slightly from 124 in July to 129 in August. That's also an 11.2% increase compared to the same time period in 2022. Meanwhile, sales dropped from 97 in July to just 68 in August. However, the median sales price actually increased slightly month-over-month (yet below 2022 prices), coming in at $1,285,700 with sellers receiving 98.6% of their asking price.
Time on the market also jumped to 54 days in August which makes selling a test of patience for homeowners. By the close of the month, Boulder inventory remained flat with 249 active listings, a 3.7-month supply of homes for sale. That number continues to hold at just over the halfway mark to a balanced market.
In the townhouse/condo market, new inventory was up and sales increased from 48 in July to 65 in August. The median price also increased from $504,750 to $535,000 last month. Sellers in this segment are also selling in the 50-day range but receiving 99.4% of their asking price.
Looking at Boulder County as a whole, the median single-family home price decreased from $840,000 in July to $797,000 in August. That's also 4% lower than 2022 prices of $830,000. However, sellers did still receive 99% of their asking price.
Also across the county, new inventory and the number of sold listings decreased month-over-month. And while the final count at the end of August kept the supply of inventory nearly flat at 2.9 months, that's 31.8% higher than in 2022.
The result? Buyers continue to have leverage when it comes to negotiating the price and requesting seller concessions. Savvy buyers are even offsetting higher interest rates with lower purchase prices and closing on move-in ready homes that have been thoroughly inspected. There's always balance to be found if you work with a seasoned agent.
Digging into the numbers, Lafayette saw a big increase in the median price for single-family homes. Prices jumped from $725,000 in July to $865,000 in August. A strong month yet 1.4% lower prices than the same time period in 2022. And despite increased prices, buyers are still shopping around and taking their time. Days on the market increased from 33 to 46 days month-over-month.
And likely due to a luxury sale or two happening in July, Louisville's median price came back down to earth, dropping from $1,075,000 in July to $778,750 in August. Last year, the median price for the area was $930,000.
Meanwhile, there were more sales and fewer new listings in Longmont. And the median single-family home price there increased from $608,500 in July to $624,000 last month. In 2022, the median price was $598,500 so that's a healthy increase of 4.2% year-over-year.
And finally, in Broomfield County, prices recovered after a drop in July. Single-family homes came in at $760,500—$95,500 higher than in July yet selling nine days slower than the prior month. August closed with just 1.7 months of inventory which is actually 22.7% below 2022 inventory. So, if the market picks up further, there could potentially be another jump in home prices.
As the data showed last month, the Boulder County real estate market is becoming more balanced while buyer demand continues to drive prices up in prime areas. Whether you're buying or selling, today's market conditions make it important to work with an experienced real estate agent who understands nuance and has the experience to help you with strategy.
What You Need to Know About Home Inspections
In the not-so-distant past, the competition to buy a home was so intense that buyers faced fierce bidding wars and often conceded one of the most important steps in the process, getting a home inspection.
Now, with higher interest rates and a much more "normal" market environment, inspections are back in a big way. So, what do they include? What do you need to know and what should you expect from the report? Let's take a look.
A true pro will thoroughly inspect a home from top to bottom. Depending on the home's square footage, it could take 2-4 hours to check everything out. As a buyer, you'll want to be there during the inspection so you can ask questions (they won’t mind) and get to know your new home.
According to the American Society of Home Inspectors (ASHI), the home inspector will visually assess:
- Foundation
- Walls, Floors & Ceilings
- Roof System
- Fireplace & Chimney
- Plumbing
- Electrical
- HVAC System
- Windows & Doors
- Exterior Siding & Paint
- Driveway & Walkway
- Deck or Patio
- Stairs & Railings
- Crawl Space
- Attic
- Basement
- Ventilation & Insulation
There are limitations, however. Inspectors may not move heavy furniture, climb a steep roof covered in snow, or shimmy into a dangerously tight crawl space. Sellers can help out by providing keys to areas that an inspector might need to access. Clear a path to and tidy up around your furnace and water heater. Reconnect utilities if you’ve moved out and had them shut off. The easier it is, the more thorough the inspection.
The report itself may be quite lengthy but not all findings are going to be major. An inspector may recommend tightening loose door knobs or cleaning out the gutters. This shouldn't hold up your transaction. The red flags are items such as signs of water damage, foundation problems, wiring or electrical issues, roof defects, visible mold or termite damage, and HVAC appliance troubles.
Within today's more balanced market, significant issues can be negotiated, whether the seller lowers the home price or agrees to address needed repairs prior to closing. So, talk to your real estate agent. They will handle it all and advocate on your behalf.
