Time for an update on current market conditions in Boulder. Let's take a look at inventory.
The chart above shows detached single family houses in the City of Boulder (excluding Gunbarrel). As of this writing, 28% of houses are under contract (active/backup or pending status). 72% are available.
Inventory below $1M continues to be in extremely short supply. As a general rule of thumb, we advise our clients that often less than half of the homes in a given price range are actually exciting enough to want to write an offer. In other words, "available" is not the same thing as "desirable." When we schedule showings and look at houses together, be prepared to swipe left often.
$1M to $2M tranche has the greatest selection.
From a negotiation perspective, $3M to 4M has thirteen homes available, but only a single home under contract, which should give buyers leverage. The lower the price, the higher the percentage of homes are under contract, despite lower end buyers typically using mortgages (i.e. more subject to rates).
Condos and townhomes are a bit of a different story. As of this writing, 40% of the market in the City of Boulder is under contract (pending or active/backup status). Intuitively, this makes sense as the median sale price is much, much lower than single family houses in Boulder and despite reduced purchasing power, there's more demand at lower price points.
Inventory of townhomes and condos is low compared to recent years, but there are options at most price points in Boulder. The question, as always, is whether the available choices are actually worth an offer. The only way to understand the market fully is to schedule showings and evaluate homes in your price range. To better understand the market, we usually advocate doing so a few months before pulling the trigger.
Percentage under contract paints an interesting picture. There are a few options in the $800K to $1M price range, as of this writing. None are under contract. Drop below $800K and the market is quite active, with more than 50% under contract. The market starts to get distorted at the very entry level, due to the time constraints involved with the affordable housing process.
I hope you've found this analysis interesting. For a discussion on the latest listings to hit the market and notable sales, subscribe to House Einstein's Fresh Listings client newsletter. As always, I welcome your feedback.
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.
