Spring is here and the flowers are blooming, but will housing inventory bloom as well?
We have been waiting patiently for more listings to go live and spring is typically that magic time where we see an influx of properties hit the market. In Boulder County, April usually marks the highest number of homes for sale.
The 2021 housing market has been acting differently. Boulder County active listings are down over 70% and days on the market went down roughly 30%. Boulder set an all-time record in March with a medium home price of $1,557,500, up 55.7% from the same period last year. However; going into April, we are seeing some signs that more houses will be available in the coming months.
While Boulder has always experienced high demand and low supply due to building restrictions, we have never seen a market like this. People are flocking out of cities looking for more space and are prioritizing lifestyle over a short commute to their office. It’s no surprise that multiple news outlets have ranked Boulder as one of the top places in the country to lay down roots. It is a mecca for health and happiness, the exact thing our society has been trying to prioritize. Boulder represents everything people strive to achieve – outdoor space, community, sports, good food, and innovation.
An influx of newcomers is not a new thing for Boulder. For years, people have been moving to Colorado to reap in all the lifestyle benefits the state has to offer. The city of Boulder knew that it was going to grow at rapid speed so they put restrictions in place to prevent it from becoming the next big hub. City planners developed a series of building restrictions including not being able to build over a certain amount of feet, preserving historical buildings, zoning open spaces as forever open space, and a myriad of other restrictions. As cumbersome as this is to developers, it is also what makes Boulder so special. No one wants their gorgeous mountain view blocked by high rises.
With such a challenging market, you may be wondering how to get an advantage on your Boulder home search. Since inventory is low, homes are not even going live on the market or they are receiving multiple offers within days of going active. This is why we emphasize hiring a professional real estate agent with years of experience and plenty of connections to be on the lookout for coming soon listings as well as new listings. Agents have many strategies to help you put your best foot forward when you’re ready to make an offer. See our latest post, “4 Reasons to Get Pre-Approved Before Buying.”
Tips for Buyers:
Ask the seller what they want
Each seller has different motivations for listing their home. They may have a job transfer, want more space, or a change of scenery. Have your real estate agent communicate with the seller’s agent to see which terms they are looking for. This may include a quick close or even a slow close with a lease back option where the seller leases the property from you for a few months while they transition. Open communication between the agents is key in this type of market.
Having a pre-approval letter in hand with a reputable lender before you start your search is very important to show the seller you are a serious and qualified buyer. This will also give you an idea of what you can afford so there are no surprises.
Don’t Be Married to A Specific Price
Lately, many homes have been selling for asking or over. You may have to go over asking in order to secure the place you would like. Also, do the math. Since interest rates are so low, that higher priced home may be attainable.
While we can’t predict the future, we can make an educated guess. Record low inventory cannot last forever. Interest rates are steadily climbing and buyers are eager to get into a home before they go back to normal. Buyers and sellers need to know that the housing market will not be on fire like it is today forever.
At Lovato Properties, we have done exceptionally well navigating this dynamic market. Our team has had multiple buyers secure their dream house, even when the odds may be against them and our sellers have received top dollar for their home. Our strategies of putting in the strongest offer has helped many of our clients succeed as well as pricing homes accordingly to get the most amount of quality offers.
We have lived in Boulder most of our lives and we are well versed in the community. If you’re looking to list your home or make a move, reach out to our team of experts. We are by your side and will do everything in our power to make sure you have a terrific buying or selling experience. Reach out today.