The current interest rate has reshaped the market - the benefit is there is less competition resulting in rising inventory which is making it easier on buyers - this is the most we have seen since Nov 2020 and +57.1% YoY. We are feeling a normalization in the market.
Due to this normalization, we are an median of 3.8% over asking price in Boulder County as opposed to the peak market of +6.7% over asking in March 2022. In May, we saw the highest amount of new homes come on the market since June 2021 - translating into more homes on the market at +37.3% YoY. Click on the above links to see live graphs of the Boulder County MLS data.
IN THE NEWS // Real Estate Agents across the country agree that the market may well be normalizing...Consider the results of a recent HomeLight Survey & Report, in which real estate agents were polled about the state of the housing market:
94% of agents believe it’s still a seller’s market
44% say bidding wars are on the decline
34% say price reductions are becoming more common
33% of agents indicate inventory is rising in their market
Deceleration does not mean Depreciation
In addition, you may have seen headlines about home prices falling, however no experts believe this will happen. Rather, they agree that price appreciation will ‘decelerate’, not ‘depreciate’. A deceleration is simply a decrease in the rate of appreciation, but appreciation won’t halt.
One of the major reasons for this, especially in a market like Colorado, is the sustained high demand from buyers along with continued low levels of inventory. In a balanced market, months-supply of inventory would be around 4-5 months. We’re currently sitting just under 1 month, so we’re far from seeing home prices go down.
If you’re curious how much your home has appreciated in the past year, shoot me a message!
Looking forward to hearing from you.
Kelly McCallister, 8z Real Estate // Kelly.McCallister@8z.com // 303-517-5524
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