It’s June, and after all of our late snow and rain it’s still so nice and green everywhere! Today was the first really hot day and the real estate market seems to be getting hotter every day too. It’s truly amazing to see how things have turned around in the last year and a half. To get a little perspective, here’s a bit of recent history.
Overview of the Boulder Real Estate Market in recent time
The Real Estate market in the City of Boulder was stagnant from about 2007 through 2011. The median home price bounced around a bit during that time but it was roughly $535,000 at the beginning and end of that 5 year cycle.
In 2012 prices and the number of sales started to increase and in 2013 prices have really started to take off, rising about 10% so far this year compared to the same time period last year. Here are a few statistics to illustrate that. These figures are for the period January through May for the last 3 years in the City of Boulder.
2011 – 235 Sales $530,000 Median Sales Price
2012 – 327 Sales $570,000 Median Sales Price
2013 – 316 Sales $632,000 Median Sales Price
That’s a pretty dramatic increase in the median sale price of about $100,000 in 2 years! Some of that may be explained by the larger number of high end sales, which pulls that median figure up but even so, it’s a big increase of 15% or more.
Also note that the number of sales so far this year is actually less than last year. This is explained by the low inventory levels we are experiencing, not just in Boulder but throughout the country for that matter. There are about 25% fewer homes for sale right now than there were last year at this time. And last year there were 20% fewer than there were for sale in 2011. As you can imagine, this is forcing prices up because there are a lot of buyers looking to take advantage of low interest rates to buy a home.
This is creating an extremely strong seller’s market. It’s completely the norm these days to put your house on the market, get a flood of showings on the first day, receive multiple offers and sell your home for above the list price. While that may be great for sellers, it’s a drag for buyers. It’s hard enough to find a house because there are so few for sale and then you have to compete with 10 or 20 0ther people to get the one you want. My how quickly things change…..it was just a year or two ago when buyers could call the shots and sellers had all they could do to sell their home.