So we’re one month into the New Year and Front Range inventory remains extremely low, particularly in the more affordable price ranges. Historically inventory should begin to increase by mid-February, but buyers have been out shopping for homes even earlier than normal this year, so they’ve been aggressively competing for the limited winter housing inventory.
Let’s look at a few statistics.
City of Boulder Single Family Homes:
107 (was 112 this time last year)
Under $750K – 84% (was 60% this time last year)
$750-$1 Milliom – 72% (was 60% this time last year)
The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the average number of sales per month by the total number of available homes. The figure shows the number of months it would take to sell the currently listed homes in the market. It is a good indicator of future market activity and home prices.
Right now most cities in Boulder County have 2 months worth of inventory for single family homes. Condominium/Townhome numbers are around 3 months. That’s crazy! A balanced market has 5-6 months worth of inventory.
If interest rates continue to rise we may see some buyers fall out of the home buying “race” that we’re in, but until our inventory sharply increases I foresee continued multiple offers and rising prices.
Curious what’s happening in your city? Contact me today.