Staying up to date with housing market conditions for your area is essential for setting expectations. If you’re considering listing or finding the ideal property, here’s what you need to know about the current trends in Boulder County:
Increased Inventory (But Still A Seller’s Market)
There’s no question that sellers in Boulder County remain in an excellent position. The data from both April and May 2022 shows that although lack of inventory still persists, we’re entering an expected and encouraging seasonal uptick in listings. February and March of this year were especially rough months for buyers, as inventory was so tight across all cities in Boulder County. Despite a marked increase in available properties as we head into summer, sellers are still poised to benefit from their homes’ unprecedented appreciation and eager buyers are ready to scoop up newly listed homes.
We’re Still in an Unbalanced Market
Listings are up, with some counties (such as Erie) showing as much as a 56% jump in months’ supply of inventory (MSI) during the month of April. The city of Boulder led the pack in months’ supply of inventory at 0.9 MSI in April and 1.24 MSI in May. Now that May’s data is in, there’s excellent news for buyers in the smaller markets. With the exception of Longmont, all cities in Boulder County have finally reached more than one months’ supply of inventory. Although this is a significant increase in supply and a very good sign for buyers, we’re still in a highly unbalanced market. Under more typical market conditions, there are several months’ supply of inventory (with six months considered balanced). Even though inventory is on the rise, we still haven’t reached the pre-COVID inventory numbers that we last saw in 2019. Millennials account for approximately 28% of today’s homebuyers, meaning that the demand for homes is still outpacing supply.
The Luxury Market Continues to Boom
With the average sales price of $1.2 million for homes in Boulder, the luxury market share is larger than it’s ever been. Boulder is attracting more highly motivated and qualified buyers, and this trend is expected to continue despite changes in the economy. The success of the luxury market has persisted even as inflation grows and interest rates rise. Homes in the $1-2 million range sparked the most bidding wars in April, further demonstrating the strength of the luxury market. However, as we enter the summer months and more inventory becomes available, we expect to see a bit of a slowdown in price points above $3 million. This is because more homes at higher price points typically become available during the summer months, so buyers have the ability to be discerning.
Although the market is still moving quickly and is largely considered a seller’s market, buyers can begin to relax a bit as more inventory is expected to become available as the season progresses. It’s unlikely that the market will become balanced anytime soon, but days on market may increase while bidding wars become less common. Ultimately, the real estate market in Boulder County is flourishing and there are encouraging stats for both buyers and sellers.