As you see your neighbor’s house go under contract in less than 24 hours for well above list price, you may be wondering if now is the right time to cash out. Maybe you have always dreamed of traveling the country in an RV. Or maybe you have been craving a change of scenery. Whatever your motivations are, if you are on the fence about listing, we think now may be the ideal time to put your home on the market. The last year in real estate has been a myriad of multiple offers, homes selling for over asking price, and terms in the seller’s favor. But why is this the case?
We call this the perfect supply and demand storm in real estate and Boulder is no exception.
Boulder County has seen a 35.2% increase in median sales price since the first quarter of 2019 and the inventory has been cut by 57.9% since the same time period in 2019. Let’s put this in perspective. Your $700,00 condo you purchased in 2019 is now valued at almost 1 million dollars in just a few short years. Days on the market have also decreased by 28.3% meaning houses are selling significantly faster and for higher amounts.
Mortgage rates are still low, increasing buyer purchasing power. Inventory is also at an all time low. People are ready to buy with pre-approval letters in hand, but sellers are not necessarily ready to sell. With stay at home orders still in place, there has been pent up demand of buyers coupled with many people sheltering in place at their home not feeling comfortable enough to put it on the market. With the increase in the number of vaccinations and stay at home orders decreasing, this may change shortly. However; the demand from buyers does not look like it’s dropping anytime soon.
Boulder and other desirable towns have seen even more demand due to people prioritizing lifestyle over other factors such as being within walking distance to the nearest subway station. We are experiencing a supply and demand problem and demand is outpacing supply in historic numbers. When the equilibrium is off, it creates a sense of urgency on the buyers’ side driving up prices in bidding wars and lowering the number of days on the market.
The Boulder Life
Some motivated buyers have their eyes set on living the Boulder life and who could blame them? The convenience of being in a city yet also steps away from nature, good food, and relaxed people makes Boulder a location that is hard to beat. Buyers no longer want to see directly into their neighbor’s window in a skyscraper in Manhattan. Instead, they want to see the mountains, trees, and people enjoying the multiple recreation trails all over town. Buyers are optimizing for chairlifts over elevators, Subarus over taxis, and activewear over suits. Lunch hike with the pup anyone?
Working from home has transformed location opportunities. Before the work from home revolution, it was not uncommon to cram into an apartment in the city only to be close to the nearest light rail. Now that the remote working shift is busier than ever and not slowing down, it opens up opportunities to fulfill one’s dreams of finally living in the mountains.
Is now the right time?
One important question you will need to ask yourself is what is your plan after selling your home as you will also run into an inventory shortage when buying. Before listing your home, make sure selling is the right move for you. If you have dreamed of buying an adventure van and climbing all the 14ers in the US, we applaud you! If your dream has always been to live in a big city such as San Francisco, we will miss you! Or, if you’re anything like our family, Boulder may be your forever home yet you want to downsize or upsize.
Whatever your motivations may be, our team is with you every step of the way to navigate this dynamic market with your best interests at heart. We have lived, walked, biked, ran, and even driven through every neighborhood in Boulder, and with our extensive knowledge of the area and the competitive market we will help you get top dollar for your home. Reach out today for a free market analysis.