Here's my personal opinion of current market conditions - in and around Boulder - and what it might mean for you.
There’s no doubt the market exploded early in January. Lots of listings coming on the market, lots of buyers jumping at opportunity. Prices have held steady with slight increases from last year, but the 10-20% increase - year over year - seems to be a thing of the past. This is good news for buyers!
At the same time, we’ve seen reports being published that the market is softening and prices in Boulder are decreasing. And while there are truths to this, I don’t see any reason to be concerned.
Overall, the city of Boulder and the surrounding “L towns” (Louisville, Lafayette, Longmont, Lyons) remain strong. When we see reports of prices decreasing in Boulder we must remember this includes all of Boulder County – and there are areas within the County that don’t hold value like Boulder does.
Now, there are tons of reports with lots of numbers out there – and I’m happy to clutter your inbox with them if you like – just ask. But the reality is, it’s a great time to be buying and selling.
Towards the end of 2018 we saw interest rates breaking 5% for the first time in many years. It was predicted that we’d be at 5.5% or higher by now. This is not the case. In fact, I’m seeing 4.25% for a 30-year fixed and even less for alternative products.
Sellers: If you’re thinking about selling, now is the perfect time. Your values have likely gone up substantially depending on how long you’ve held the property. And don’t forget - if we’re talking about you primary residence and you have lived there for any two of the past five years, you’re likely not paying any capital gains – up to $250k for an individual and $500k for a married couple with a joint return. *Speak to your CPA or Tax Attorney for details.
Buyers: The shift in the market, or softening or correction (or whatever lingo you might have heard) is working in your best interest. And while there are not huge deals to be had, there are some trends that might help. First, you have a bit more time to make a decision - meaning you no longer need to submit an offer within 5 minutes of the listing going live – sight unseen. Second, offers with loans and other contingencies are winning the deal again – opening the market to more people. But most important, there’s still a steady stream of inventory to choose from (depending on your price point).
So, if you look at the past ten years in Boulder – now really is a good time to buy and sell! If it’s a good time for you, I’d love to help.