You may have heard that the real estate market continues to post impressive numbers despite the enduring coronavirus pandemic. If you’re thinking about buying or selling a home in Boulder County or elsewhere, you may be interested in taking a deeper look into local and national stats. Here, I share updated market conditions for Boulder County and beyond:
2020 Was a Strong Year
Although we experienced a dramatic dip in showings upon the beginning of the coronavirus pandemic, national sales of existing homes continued to be strong in 2020. There were 5.64 million sales of existing homes in 2020, which is a 5.6% increase from 2019 and the most sales we’ve seen in this category since before the Great Recession.
What to Expect in 2021
Boulder County is expected to follow along the national trends of limited inventory in 2021. Due to limited inventory and the strength of the housing market throughout the United States, multiple forecasts expect home prices to climb by an average of 5% this year.
Those interested in buying a home will be pleased to discover that mortgage interest rates are continuing to be available at historic lows. In Q4 of 2020, we saw mortgage rates as low as 2.8% and the rates are similar in Q1 of 2021. However, they are expected to climb as the economy recovers.
When to Expect Listings
If you’re thinking about listing your home or buying in Boulder, you may be curious about when to list or start your search. On a national level, inventory has rapidly declined since early 2020. Inventory is currently down 23% from one year ago, which helps explain the ultra-competitive market conditions.
Although inventory is expected to be tight throughout 2021, it’s predicted that more homes will be listed in the second half of this year. Some sellers will choose to list as early as possible to avoid competition, while more may be holding out for vaccines to be readily available before listing. If these predictions hold true, expect to see more listings enter the market in the second half of this year or early in 2022.
In 2020, homeowners cited the top three reasons for not selling as financial uncertainty (31%), general life uncertainty (34%), and COVID concerns (25%). As we continue to make progress on controlling the pandemic, more inventory is likely to hit the market.
What Buyers Are Looking For
In our local market and beyond, buyers are increasingly on the search for homes that accommodate remote work. In 2019, just 6% of individuals worked from home. That number spiked to 21% at the onset of the pandemic and is expected to level out around 12% by 2022. With so many people continuing to work from home, it makes sense for buyers to be on the lookout for properties that are equipped with a home office or comfortable outdoor spaces.
Ultimately, it’s widely considered to be an excellent time to buy or sell in most parts of the country. According to the Deputy Chief Economist at First American, owning a home makes more financial sense than renting in 48 out of 50 of the top markets. Boulder County is within the 50 top markets, making our area a wonderful place in which to buy. If you’re interested in listing your home in Boulder or finding your dream property, I can help. Please contact my team to learn more about our process.