Note: If you've been tracking our socials (FB, Twitter, Instagram), you've seen the following charts.
The graph above shows inventory for condos and town homes in Boulder. The yellow line is the most recent data, for the last twelve months (LTM). The blue shaded area is the average for the preceding three years, per month.
As you can see, inventory in Boulder has been above average for the entirety of the past twelve months.
Now let's look at Denver.
Like Boulder, inventory has been much higher than average but beginning in March, it spiked upward. It continued its upward trajectory in April and May.
This last chart shows both Denver and Boulder inventory levels for town homes, as they compare to the 3 year average for each month. Last summer, Boulder inventory was much higher than average; ~60% higher in June and ~70% higher in July. In August, it dropped substantially and it has hovered between ~22% and ~45% above average since.
Denver, on the other hand, was hovering between ~30% and 40% during the second half of last year, before spiking upwards this January. It's now more than 100% higher than average.
What Does It Mean?
Although it's far too early in the Covid-19 epidemic to draw firm conclusions, the data supports the notion that there is a coming exodus from larger, high-density cities to smaller, lower-density communities.
Real estate needs are going to change in response to work from home opportunities. This should increase demand for home offices, detached studios and ADUs, and work-live units. We've also noticed buyers are putting a premium on private outdoor living spaces. Buyers also increasingly value access to parks and open space.
Although I'm doubtful the exodus will be long lasting, this is the first real data that shows how the real estate market is changing in response to Covid-19.
Osman Parvez is the Founder and Employing Broker of House Einstein. Originally from the Finger Lakes region of New York, he lives in Boulder with his wife and their Labrador Retriever. He has been a Realtor since 2005.Osman is the primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has also appeared in many other blogs about Boulder as well as mainstream newspapers, including the Wall Street Journal and Daily Camera. For more information, click HERE.
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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. House Einstein strongly recommends conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
