Metro Areas with Highest Rates of House Price Appreciation (Chart courtesy of the Federal Housing Finance Agency).
Jennifer Egbert, RE/MAX Alliance
BOULDER – Packed open houses, properties going under contract the same day they’re listed, and vicious bidding wars are all very good indicators that you are shopping for a home in a “hot” real estate market. If you’ve listed a home for sale in Boulder over the last 12 to 18 months, it’s very likely that you’ve encountered one or all of these dynamics. As a seller, learning about the level of competition among future homeowners in our area can certainly come as a surprise. For a Realtor in Boulder, however, these instances have become quite commonplace.
Second only to Port St. Lucie, Florida, Boulder is one of the hottest markets in the United States, speaking in terms of how quickly the homes in an area are appreciating in value. This occurs only as a function of supply and demand, as we’ve discussed before, and it’s no surprise that demand for properties in Boulder County is high. As you can see from the chart on the right, provided to us by the Federal Housing Finance Agency at the end of the first quarter of 2016, the value of homes in Boulder increased by over 14% in a year’s time. As a result, home values continue to appreciate much quicker here than they do in other areas of the country.
These figures are based strictly on purchase price; any appraisal data has been omitted.
Sellers, for you, these numbers may be a very strong confidence booster, but try not to get ahead of yourselves. Even in a “seller’s market”, it is absolutely possible for sellers to get the short end of a deal if they don’t take the necessary steps to ensure that the process goes smoothly. If you want your listing to stand out, the key is to have a strong listing agent on your side. The Realtor you choose should live in your destination city and have extensive experience working on the seller’s side of real estate transactions.
In thriving real estate markets, the challenges faced by sellers are quite different from those experienced by sellers in other areas of the country. The sheer volume of people viewing your home in this type of market might shock you if you have not sold a home in the last few years, but it certainly doesn’t stop there. Considering how home prices have changed so drastically over the last several months, you may encounter a lack of comparable properties, leaving you feeling very uncertain about your home’s list price. Bidding wars are generally not much fun for anyone, even for sellers. You can also run into issues if the bank’s appraisal is less than the agreed-upon purchase price.
The point to be made here is that when you’re selling a home in a hot real estate market, the most valuable resource at your disposal is an experienced and competitive listing agent. People want to be where we are, and that makes your property a high-value commodity. Don’t subject yourself to unnecessary headaches, and definitely do not sell your home for less than it is worth.
Jennifer Egbert is an award-winning, top-producing Realtor with more than eleven years of experience. She is a licensed residential agent that specializes in the Boulder market. She is an expert in Boulder Luxury neighborhoods, home builders and most current market conditions. To learn more about the Boulder real estate market, visit www.jenniferegbert.com, follow her on Twitter and Facebook or call 303.442.3180.
