Boulder County Continues to Struggle with Inventory
This month’s Boulder & Broomfield County sales report has a few changes that makes it look a bit off. The numbers are correct, but the method in which they were pulled is not consistent, which gives us a skewed view of the results.
You have noticed that IRES changed their system. One thing you may not have noticed is that in the past, when you chose to look at Active Listings, you had to exclude Backup, Pending and Under Contract status. Now, when you pull Active Listings, those subsets are automatically excluded. Therefore, the number of Active Listings in this report are greatly under-reported compared to how they were reported in the past.
Looking past the Active Listing numbers…which is kind of a big concern in the market. There are a lot of other things that should be of concern. Significantly rising prices is one of them. Rising prices are what we have all been hoping for over the past several years. But in many areas they are skyrocketing. This could lead to slower sales in the future, but I guess we will cross that bridge when we get there. Right now we still have huge demand. Coupled with low inventory, we are seeing one or fewer months of inventory in several areas. The result of this is unbelievably low days on market.
Buyers and sellers both need to be aware of these circumstances. I’m sure you are counseling your clients on the possible ramifications this kind of a market can have on their buying and selling decisions. Still, the best antidote to avoid a number of problems in this arena is to get BOTH your buyers and sellers pre-qualified for their upcoming home loans. Having spoken with a handful of lenders recently, they all agree that getting your sellers pre-qualified is of supreme importance. Not only will they be able to jump on their perfect home once theirs goes under contract, there are other considerations. Mainly, if you hadn’t noticed, the lending environment has changed significantly over the past few years. And, just because your seller owns their house and can sell their house, it doesn’t mean they can qualify to buy a house. This being said, you’d hate to go through the trouble and expense to list and market a house, negotiate a contract and then finally find out your seller can’t buy. Do yourself and your sellers a favor and speak to a local lender early in the process.
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