We are on the final approach to January 1st and this is shaping up to be another very interesting year for south Boulder real estate. There are some market dynamics in our neighborhood that I would like to share with you.
At the beginning of the year we thought inventory couldn’t get any tighter. 2014 had so few listings compared to previous years and there was such pent up demand from buyers that it seemed like there was only room for improvement. Well, I’m a little surprised to find that inventory in 2015 is down 17% from 2014. The shortage of listings would make sense if there was a shortage of buyers but that couldn’t be farther from the truth. Our 2015 market was in as much demand as it was in 2014. On average it takes merely one week for a property to go under contract and we saw many listings this year with 10-20 offers come in over the first few days. There has not been any shortage of buyers.
So how do we explain the fact that we have fewer listings for sale this year than last year? I think it is due to a few things. First, homeowners are concerned that if they put their home on the market and sell in the first month they are not going to be able to find a replacement home to move into. There are some ways to improve the odds but it is still a bit of a gamble. Second is that some of the folks who want to move but do not have the confidence that they will be able to find their replacement property are deciding to take matters into their own hands. They are refinancing their current home and getting really good deals on home equity loans that allow them to pop their top or remodel their existing home.
This is the year of the pop-top in Martin Acres. I predict that next year will also be. Thirdly it is easy to decide to stay in your current home, flaws and all, when you are appreciating 15-20% for the second year in a row. That’s right… 15 to 20%! Median price is up 18% and average price is up 21%. There’s something about making $75,000 off of your real estate investment that makes it easier to deal with the fact that you only have one bathroom to share with your teenager. There are many ways to slice this data. What I have typed above is just one way.
I always have time for Martin Acres real estate. If you would like to talk about your options give me a call. My experience is invaluable in a market such as this. I can help guide you through the process to meet your goals.
*Not all properties were listed and/or sold by 8z Real Estate. This data is based on content supplied by REcolorado, IRES, PPAR, and/or MLSListings. Content is deemed reliable but not guaranteed. Content may not reflect all real estate activity in the market.