We had a great discussion at last night's Boulder Real Estate Meetup. One idea was how our local market might be quite different from other markets around the country, where activity has slowed.
Take a look at the chart above. Despite rising interest rates, most cities in Boulder County are showing higher absorption rates than last year. The outliers are locations or property types with significant new construction supply - such as attached dwellings in Boulder (think 200+ units at the Peloton and S'park on sale) or Superior, where several new developments are under construction (Superior Town Center, Skyestone). Even in markets where the absorption rate has dropped, demand remains very high. Absorption is in +50% range.
For sellers - now is a fantastic time to list your property. The real estate market is seasonal and we're headed into a very strong spring. Priced right and marketed professionally, most homes should find enthusiastic buyers willing to pay a premium. The key is to have an effective strategy to manage and negotiate with multiple offers. The goal is to maximize price and minimize the risk of a return to market scenario caused by buyer's remorse. It's critical to understand market conditions for your specific property type, location, and price range. As recent capital market gyrations underscore, there is a lot of risk presenting itself. Market conditions could change very quickly. Don't wait until mid-summer to get your home on the market.
For buyers - the key is to be prepared. There is no substitute for seeing lots of real estate possibilities and tracking sales closely. There are also many ways to strengthen your offer without exceeding your price target. Talk to an experienced Realtor. And if you miss out in a bidding war, perhaps because another buyer had greater financial resources (or less prudence), just remember that there's always another house. Not every house is worth going over budget.
p.s. Colorado appears to be a net beneficiary of demographics, migration trends, and the recent tax changes. For more on how those changes are impacting the real estate market, read What to Expect from the Housing Market This Spring.
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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
Ready to buy or sell? Schedule an appointment or call 303.746.6896.
You can also like our Facebook page or follow us on Twitter.
As always, your referrals are deeply appreciated.
--
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
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