Are you planning to buy a property in Boulder, CO? Here's the key information you should check before making your purchase.
This city is a popular destination for real estate investors, migrants, and workers looking for relocation, as it offers a strong economy, beautiful attractions, nice weather, and many career opportunities.
In addition, Boulder has a comfort index of 7.1 out of 10 and one of the country's highest quality of life rates, which shows that this city is great for those looking for the perfect place to live.
However, the Boulder housing market has experienced major fluctuations. As a result, many wonder if they should buy a home in this city.
Boulder Housing Market Trends
Redfin's latest reports on the Boulder real estate market showed that home prices fell compared to last year's figures. However, the median home sold price is still high.
Additionally, the number of properties sold has increased considerably since January of this year. Does that mean that Boulder is a competitive market? Here's more information on each trend to help homebuyers make sound decisions.
Boulder Median Home Prices
According to Realtor.com, the median listing home price in Boulder, CO, was $1.2 million, which is considerably higher than in other major cities.
Based on the same reports, the median sold home price was $1.1 million, just $100,000 below the asking price.
Redfin's reports show that the median sale price was slightly lower in April 2023, reaching just $987,500 after a 21.0% year-over-year drop.
Housing Demand and Homes Sold
According to Redfin's reports, home sales also fell in April of this year, as only 104 units were listed and purchased, which accounts for a 23.5% drop compared to 2022 figures.
In addition, 26.0% of the homes listed in the Boulder market sold above the list price. That's a 43.9% drop from last year.
Conversely, the number of homes experiencing a price drop rose by 13.4%, reaching 21.5% in April of this year.
Realtor.com also showed that the housing supply in Boulder remains low, with just 536 residential units listed for sale.
Median Days on the Market
The latest reports published by Redfin unveiled that the city's median days on the market is up, meaning it is taking longer before someone buys a listed property.
In April 2023, the median days on the market was 32, which is a 5-day year-over-year increase.
Factors Affecting the Boulder Housing Market
Many factors can influence a city's housing market, including the economy, local tax policies, population changes, and the country's mortgage interest rates. Find more information on each below.
In Boulder and any other city, the economy plays a key role in how a real estate market behaves.
When the economy is strong and prosperous, people feel more confident about their finances and risk tolerance. Therefore, many are willing to invest in properties.
Different indicators provide more information about a city's economy, including the unemployment rate and the Gross Domestic Product (GDP).
According to the US Bureau of Labor Statistics, the unemployment rate in Boulder, CO, was 2.3 in March 2023, which is 0.4% lower than in February of this year. It's also below the national unemployment rate, which was 3.4% in the same period.
Changes in the population can directly affect a city's housing market. People's age, income, and migration patterns are a few of the key aspects.
Out of all the cities in Colorado, Boulder is rated 12th in terms of population. In addition, Redfin says that 1% of national homebuyers expect to move to this city from other metros.
Additionally, 65% of homeowners want to stay within the Boulder metropolitan area, while 35% of residents expect to move out of the city.
Mortgage Interest Rates
National mortgage interest rates have risen sharply in recent months, reaching 6.79% and 6.16% for 30-year fixed-rate loans and 15-year-fixed-rate loans, respectively.
Rising mortgage rates also have a major impact on the city's real estate market, as they make housing units less affordable. Consequently, home prices and demand fall.
Governments also use tax policies to control housing demand and prices. Therefore, real estate investors and homebuyers must pay attention to these indicators to know if a trend is false.
Is the Boulder Housing Market Expected to Crash?
Why did home prices in Boulder fall? Does that mean the local housing market will crash soon?
Experts don't predict a market crash but a slowdown, which means people shouldn't worry about major negative changes.
Additionally, analysts believe the following signs show that the Boulder real estate market won't crash soon:
- Many people still want to move to Boulder, CO, and nearby cities, so housing demand remains high.
- The high housing demand causes the number of homes in the inventory to drop. Additionally, many homeowners don't want to sell their properties under the current market conditions. Therefore, the supply remains low.
- Strict and time-consuming processes make getting approved to buy land and build properties an unattractive option for many people. As a result, the number of newly built properties is low.
- Foreclosure filings are less common now, as people have ample cash and solid finances. Additionally, many residents have more equity in their homes.
- Lending requirements are stricter than 15 years ago. Borrowers must have an excellent credit score to get a loan, so there's no purchasing power altering housing demand, prices, and supply.
Boulder Housing Market Statistics
Ideally, homebuyers and real estate investors should also consider the following statistics to determine whether buying a home in Boulder could be beneficial to their finances:
- Realtor.com's latest reports showed that the median price for a housing unit in Boulder was $581 per square foot.
- Home prices range from $35,000 to $15 million across the 50 neighborhoods that make up Boulder.
- The sale-to-list price ratio was 99.69% in April 2023, showing that most homes are sold for the asking price.
- In Downtown Boulder, the median sale price was $1.2 million. A total of 17 homes were listed for sale in April of this year.
- Realtor.com's reports also showed that the median listing price for a home in Boulder County topped $781,000 in February 2023 after rising 5.5% year over year.
- According to the Colorado Association of Realtors, the number of new listings fell by 1.6% to 241 in February 2023.
- Since Colorado (CO), Boulder included, had one filing for every 6,512 housing units, the state was rated 29th for the highest foreclosure rate by SoFi.
Boulder Housing Market Predictions
If you're still not sure if buying a home in Boulder, CO, is a good idea, check out the experts' predictions below:
- Experts believe that the Boulder housing market will fall by 0.2% in May of this year.
- In addition, analysts expect this trend to extend into 2024, declining by 1.9% in February.
- Specialists expect mortgage interest rates to rise over 8% this year as the country faces growing inflation.
- Home prices are likely to fall if mortgage interest rates rise, which would make the market more challenging for sellers.
- Since demand is still strong, buyers can expect a competitive market with several homes selling above the list price.
Boulder is a beautiful city and offers many benefits to its residents. Besides a health-oriented culture, this destination has a strong economy and plenty of job opportunities for people.
However, home prices are considerably high even though they fell last month. Therefore, homebuyers and real estate investors should be cautious with their purchases.
Frequently Asked Questions
Is Boulder, CO, a Seller's Market?
Yes, it is! Since the number of potential homebuyers is considerably greater than the demand, Boulder, CO, is considered a seller's market.
In other words, homebuyers can set higher prices for housing units.
Is It a Good Idea to Buy a House in Boulder, Colorado?
If you want to know if buying a house in Boulder is a good idea, you should consider different aspects, including the latest housing market trends, experts' predictions, your risk tolerance, and your budget.
You can also contact a seasoned real estate expert to get the advice you need to make a sound decision.