Inventory Continues to be an Issue in Boulder County
Inventory continues to be an issue across the region; days on market have dwindled to unbelievably low levels and average prices continue to rise. All three of these things are good, right? Well, I like the rising sales price averages, but there is a lot more here that can be bothersome in the upcoming months.
We will continue to see what I’m calling “Flash Inventory”over the next 30-60 days. At the end of that period we should start to see inventory levels rise a bit. Flash Inventory are listings that come on the market and are scooped up within days of becoming active, giving only the most prepared, highly qualified and aggressive buyers a new home to live in. There are a lot of buyers monitoring new listings and ready to pounce on something that resembles the right home. They are sometimes desperate, a bit frustrated with few choices and their patience is running thin. These buyers will prolong our current trend of low inventory, fewer DOM and rising averages.
A majority of what is pushing the average sales price higher is not necessarily all found in rising prices. It can be found in the significantly low levels of lower priced homes. Here is a taste of what is available around the area (single family detached only). The results are amazing.
Boulder – 3 homes listed below $400,000
Lafayette – 6 listings below $350,000
Louisville – 2 listings below $400,000
Longmont – 13 listings blow $250,000
Broomfield – 13 listing below $250,000
Erie – 6 listings below $300,000
Where can a person find availability AND affordability? They can’t because there’s almost nothing available. Some of the listings mentioned above are cash only deals due to condition, low income only housing or very small homes that won’t work for a family. Since there is so little to choose from in the lower end, most of the sales are occurring at higher price points and thereby driving up the average and median sales prices. So it’s not that prices are rising astronomically, it’s just that’s where the activity is these days…and with nothing at the lower end selling, the averages go up.
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If you have a buyer, patience is the word for them to embrace. Things will change and their perfect home will be on the market in the next 30-60 days. Sellers need to be thinking the opposite before the market gets flooded with listings and they miss out on this opportunity to get the deal done quickly.
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