Boulder Real Estate Quiet Over the Holidays
While the city of Boulder and the county as a whole followed seasonal patterns of slowing through the end of the year, the numbers point to the possibility of a very busy spring—which will arrive sooner than you think!
In the city of Boulder, there were just 37 new listings of single-family homes while 47 sold last month. December also ended with 143 homes still available for sale and 2.1 months of inventory. Back in September, inventory reached 4.2 months, only to have inventory dwindle over the winter. It's the perfect recipe for a competitive spring, depending on how many sellers have been waiting for more favorable rates.
Despite buying outpacing new listings in December, sales were down 21.7% year-over-year. The median price for a single-family home in Boulder also decreased from $1,383,250 in November to $1,235,000 last month. And while this is 11.4% higher than in 2022, the year-to-date figures provide the full picture. Taking all of 2023 into account compared to 2022, Boulder prices decreased by 3.4%, likely in response to higher rates throughout much of the year.
The market pace also slowed way down last month with it taking 77 days to sell compared to 67 the prior month. That's also up 22.2% year-over-year.
In the townhouse/condo market, new listings dipped from 32 in November to just 28 in December and sales decreased from 44 to 33 month-over-month. This likely led to prices decreasing from $525,000 to $457,000. Days on the market also jumped to 83 which is a 53.7% increase compared to 2022. November also closed with a 1.9-month supply of inventory, lower than November yet 90% higher than the prior year.
In Boulder County, the median single-family home price decreased from $790,000 in November to $775,000 last month. That's 3.1% below the 2022 price of $800,000—and year-to-date, prices decreased by 2.9% across the board.
Also across the county, new single-family inventory dropped yet again while the number of sold listings ticked up slightly from 181 to 183 month-over-month. Sales were also 7.6% higher compared to 2022. December ultimately closed with 406 homes still available for sale in Boulder County. Again, this 1.8-month supply of inventory is likely to be a huge factor as the real estate market warms up over the coming months.
Looking closer, single-family home activity in Lafayette saw a big drop in new inventory month-over-month. With the number of sales remaining steady, however, total inventory decreased to 2.4 months supply. In addition, the median price increased from $734,945 in November to $825,000 last month. Up north in Longmont, new listings dropped from 64 in November to 30 in December while sales ramped up from 51 to 75. Still, prices decreased $650,000 to $590,000 month-over-month.
And finally, in Broomfield County—new listings, sales, and the median price came in below the previous month. The number of new single-family listings decreased to 23 and 32 homes sold. Month-over-month prices decreased, coming in at $627,500 and 7.4% lower than in 2022. However, December then closed with inventory 37.5% below 2022, just 104 properties still available for sale, and 1.2 months of inventory.
As the data showed, the Boulder County market generally slowed but pointed to the potential for a big upswing as buyers refocus on finding a home in the new year. Selling continues to require strategy and patience, as well as a real estate agent experienced in today's more normalized market. A knowledgeable professional who can provide nuanced guidance as the seasons shift will be the key to your success.
Homeowners Insurance Coverage Options
There's a lot to learn and understand when buying a home. Once you decide on a new house, submit an offer, as well as deal with an appraisal and inspection, you'll be faced with another task—selecting homeowners insurance.
In fact, to be approved for a home loan, your mortgage company will require you to secure a policy. If you're buying your first home, this is yet another hurdle that might seem a bit daunting. You've never owned a home before, so how would you know what coverage is best?
Even if you're currently an owner, it's always a good idea to review the options and choose a smart, comprehensive policy*. After all, your home is often your biggest asset. Here are your typical policy levels to choose from:
- Actual Cash Value – The policy covers the cost of your home and the value of your possessions, minus depreciation at the time of the loss. This will always be less than what it would cost to replace things.
- Replacement Cost – This covers the cost of rebuilding or repairing your home, as well as replacing your possessions without a deduction for depreciation. This allows you to repair/rebuild only up to the original value of your home—like for like.
- Extended/Guaranteed Replacement Cost – An extended policy pays a pre-determined percentage over the limit, typically 20-25%. Guaranteed pays whatever it costs to repair or rebuild even if it exceeds your policy limit.
While a guaranteed policy is the priciest, it offers valuable peace of mind. It means you can rebuild even if lumber costs are high due to supply chain issues. It means that if there's a widespread disaster that causes increased building costs, you'll typically be fully covered. Additional coverage and separate riders can also include:
- Additional Living Expenses (ALE) which reimburses you for certain expenses should your home be destroyed or become uninhabitable due to loss.
- Ordinance and Law Coverage so that your home can be repaired or rebuilt according to current construction codes and industry standards.
- Added coverage for flooding, hail storms, detached structures, high-value items such as jewelry, and water backup or sump pump overflow.
Final tip—read through everything, ask questions, and make sure you understand your coverage, limitations, responsibilities, the claims process, and all that insurance lingo like "peril" and "depreciation."
*For informational purposes only. Always consult with a professional before selecting an insurance policy.