2017 Year in Review: A Look Back at the Local Market
Boulder County’s residential real estate market maintained prevailing trends of high demand, low supply, increasing prices, and competitive bidding practices throughout 2017. Read on to learn more about the each of these parameters in more detail as well as for 2018 projections. We begin with a discussion of Boulder County-wide statistics but recognize that you also want to understand city-specific trends. Scroll to the bottom of the article for city-specific reports.
Prices: Median home sale prices were higher than last year. The median sale price of a single-family home increased 3.7% annually to $553,175. The median sale price of an attached home (condo/townhome) increased 2% annually to $355,000. These 2017 increases in valuation were less than increases observed in 2016. Prices are expected to continue to rise, albeit at potentially slower rates than we’ve observed in recent years.
Inventory: The number of homes for sale remained less than the number of buyers seeking properties in our region. The “months of inventory” indicator averaged 1.1 months in 2017. This indicator represents the rate at which homes sell. A value of 1.1 months means that, on average, the amount of homes for sale at any given point in time during 2017 would be sold and off the market in 1.1 months-time (assuming no added inventory). When explained another way, our market’s absorption rate was 1.1 months in 2017 – which is a very rapid rate. This shortage in demand is expected to persist into 2018 although indicators suggest builders are beginning to bolster their workforce to keep up with growing demand. It will take more than one year for building activity to catch up for those buyers interested in new construction.
Sales: As mentioned above, demand continued to exceed supply. This is despite the fact that 6.2% more homes were sold in 2017 compared to 2016. 72% of properties were residential and 28% of properties were condos or townhomes (otherwise referred to as attached dwellings).
Percent of List Price Received: Sellers sold their homes for a price that averaged 99.6 percent of their original list price in 2017. This is a 1.1 percent reduction compared to 2016 meaning that homes sold at the asking or “list price” versus selling for over the “list price”. Note, this parameter is highly dependent on the city within Boulder County. See city-specific stats below.
Local market: Boulder County continued to experience a housing shortage throughout 2017 and maintained “seller’s market” conditions of multiple, highly competitive offer situations, full-price sales, and super low inventory conditions. We see market trends continuing in this direction due to continued demand from folks looking to relocate to the area for job reasons, lifestyle preferences, and affordability reasons relative to higher prices in west and east coast markets like Silicon Valley, Seattle, Boston, New York, etc. This has led other groups of buyers with less buying power to feel that they are “priced out” of our region.
2017 trends are expected to continue into 2018 albeit at slower rates than we’ve experienced in recent years. Macro-market indicators remain conducive including low unemployment and high consumer confidence. Yes, demand will still be crazy and values will continue to increase but a few new variables are at play in 2018 including rising interest rates and unfamiliarity with how new federal tax laws will affect the financial benefits of homeownership. These variables may give some buyers pause. Would you like clarity on the new federal tax structure as it relates to homeownership? Click here for a tax law summary and understand whether you actually will be affected.
We’ve just provided you with the ”bird's eye-view' that county-wide statistics will provide. Now let’s dig into the micro-market trends that can be observed when we look at individual cities and/or regions.
Scroll down the page or click to view all of the details for each of the following towns: