Federal Interest Rate Reduction Gives Boulder a Boost
As anticipated, the Federal Reserve lowered the federal funds rate by half a percentage point in September. While the cut didn't arrive until September 18th and doesn't directly affect mortgage rates, Boulder buyers and sellers saw rates ease and the market perked up slightly in certain areas.
Still, the city of Boulder had 5.1 months of single-family home inventory left over from August. Even with a small boost in activity, that only decreased to 5 months by the close of September. Until that dwindles further, the market will continue to give buyers the ability to enjoy today's better rates and negotiate even better terms.
Looking closer, there were 129 new single-family home listings in September, an increase of 17 month-over-month yet a decrease of 10.4% compared to 2023. Home sales also dipped slightly compared to August and by 7.4% year-over-year—though closed sales most likely reflected homes that went under contract in August.
One interesting data point is days on market until sale. While up slightly compared to last year, that number fell from 76 in August to 52 in September. This indicates that both buyers and sellers were pretty motivated to get deals moving. Perhaps to capitalize on easing rates and perhaps to get closed and settled before the holidays.
As for the median price, it came down yet again, decreasing from $1,325,000 in August to $1,155,000 in September. That's also 8.5% below the median in 2023. With inventory backed up, days on market long, and the slow holiday season right around the corner, buyers did not shy away from negotiating. And motivated sellers were willing to compromise on price and more.
Now for inventory. In August, the number of homes still available for sale in Boulder decreased for the first time this year. Active listings decreased again in September, coming in at 334 properties still for sale. While that's up by 8.8% year-over-year, dwindling inventory could become a trend as we head into Q4 which is typically the slow season for real estate.
As for last month's numbers in Boulder's townhome/condo market, the median price regained ground after a big drop in August. Coming in at $580,000, the median was well above the $399,900 posted in August and increased by 16% year-over-year. Not bad considering the rest of September's numbers.
Unlike the single-family home segment, new listings decreased from 108 in August to 79 in September. Sold listings also fell from 49 to 38 and by 19.1% year-over-year. Days on market remained extensive, coming in at 71. Last year, condos were selling in 36 days. While supply decreased last month, it remains a buyer's market with 6.1 months of inventory. That's a 96.8% increase compared to 2023.
Across Boulder County as a whole, the single-family market was similar. New listings decreased slightly month-over-month and by half a percentage point compared to 2023. Sold listings slowed from 251 in August to 233 in September, and the median price decreased from $812,000 to $756,000 last month (6.7% below the median for 2023). Days on market decreased from 61 to 57 as well.
However, the month closed with 885 properties still available for sale which is up month-over-month and 9.8% above 2023 numbers. In addition, the 3.7 months of inventory that remained at the end of September was slightly higher than in August and flat compared to the prior year.
Looking at city markets, single-family home activity in Lafayette included fewer sales, dropping from 35 in August to 15 in September. The median price also decreased, coming in at $755,000 and 8.8% below the median for the prior year. Next door, new listings and sales were about the same MoM in Louisville, though prices there fell from $925,000 in July to $800,000 last month. That's how quickly and easily markets change along the Front Range.
Erie was a bit busier. In this community, sales jumped from 50 in August to 76 in September. The median price also increased by nearly $100k, coming in at $792,475 for September. While inventory remained about the same month-over-month, the supply decreased by 18.4% year-over-year.
And finally, in Broomfield County—new listings of single-family homes jumped from 78 to 101 month-over-month while sales ticked up from 66 to 69 properties. Days on market increased, coming in at 41, and last month's median price of $699,000 was well under August's median of $749,100. That's also 4.6% below 2023.
The month closed with 134 properties still available for sale across Broomfield County and 2.4 months of inventory—up slightly month-over-month, but flat year-over-year.
While the Fed dropped rates, it may have come a little late to have a major effect on the numbers in September. And with most Front Range communities sitting on quite a bit of inventory, the fall and winter months should be interesting and potentially, full of surprises for both buyers and sellers.
That's why it's always smart to work with an experienced agent who can provide a smart strategy, as well as advocate and negotiate on your behalf every step of the way. A proven professional will have the expertise, network, and resources to help you achieve your goals. Choose your agent wisely.
Winterization Checklist for Homeowners and Sellers
Nothing shows how sturdy and well-maintained a home is than frigid winter temperatures and weather extremes.
If you plan to sell this fall or winter, it's important to take care of certain tasks to ensure your home remains warm, cozy, and attractive to potential buyers. Drafty windows or a damp basement can be big red flags that could cause your home to linger on the market.
And if you plan to buy a home in the coming months, investigating drafts and asking about fireplace inspections will be part of your due diligence when it comes to determining what home you put an offer on.
Winterizing a Home's Exterior
- Clear gutters and downspouts then do a quick sweep after the leaves are done falling.
- Hire a pro to inspect your roof for loose/missing shingles or flashing and repair as needed.
- Have a lawn expert blow out the sprinkler system and shut everything down for the season.
- Disconnect all hoses from your exterior faucets and attach an insulated hose bib cover.
- Close crawl space and other exterior vents to keep the winter chill out and the cozy in.
- Cut back weak or dead tree branches that could break and fall on your roof, car or fence.
- Cover or store outdoor furniture, grills and hoses in the garage, basement, or yard shed.
- Reseal decking to prevent water intrusion and damage from rain and winter snowfall.
- Get your chimney cleaned, inspected and repaired to prevent fires and harmful fume leaks.
- Before the snow arrives, buy a good snow shovel, salt or sand, and other winter supplies.
Winterizing a Home's Interior
- Have a pro service your HVAC, including the blower, motor, piping, and other components.
- Replace your furnace filter and continue doing so every 4-6 weeks throughout the winter.
- Seal drafts (with caulk/weatherstripping) around doors, windows, lights and switchplates.
- Clean dirt or debris out of windows tracks where it may prevent proper sealing.
- Test the fireplace flue to ensure that it operates properly and forms a tight, closed seal.
- Insulate your water heater/pipes if they're in the attic/basement or inside an exterior wall.
- Check the smoke and carbon monoxide detectors and replace the batteries if needed.
- Move furniture, rugs and other items blocking any heating vents to ensure proper airflow.
- Make sure ceiling fans turn clockwise so they push hot air from the ceiling down to the floor.
- Install a smart or programmable thermostat to control temps when you’re not at home.
If you need help with any of these tasks, reach out to your PorchLight agent. As your local resource for all things home, they can point you in the right direction of a reliable and reputable company.
