As the world begins to open up again to embrace a new normal, the real estate industry reflects pandemic-prompted changes relating to professional, social and cultural norms. The first quarter in 2021 showed a decrease in inventory and an uptick in home prices, as well as emerging top priorities (like home office space or student work areas) that home buyers had when seeking a new residence. Here’s what to expect in quarter two.
New listings are on the rise
The first week of January 2021 saw 59 new listings, whereas the first week of April boasted 106. Listings slowly rose as winter faded and vaccine availability concerns waned. Only 8 offers this week were withdrawn, compared to 33 at this same time last year.
Buyers seeking a permanent residence in Boulder may have felt frustration at the beginning of the year with the limited inventory available and high competition. However, they should remain optimistic. More homes are becoming available as we move toward the summer, causing a decline in competition.
Boulder’s market reflects nationwide issue
Across the United States, existing home real estate inventory is down by 52%, yet showings are up by 49.5%, leading to a large deficit between home buyers and homes available to purchase. Experts relate this gap to COVID concerns, financial downturns, and relative uneasiness to make large decisions when public health and the global economy hang in limbo. As Boulder’s market starts to open up in response to decreased restrictions, we can expect to see
a lot of the U.S. do the same.
Interest rates are creeping back up slowly
The pandemic caused a sharp decline in interest rates over the last year. They fell from approximately 3.7% to 2.6% and are now slowly making their way back up. Now is still a great time for a home loan and those with good credit can still expect great interest rates that average to 3.18%.
Construction remains at a standstill
New York and Hawaii were the only two states that had any wiggle room with real estate inventory in the past year. Inventory is down by 52% across the country and down 50% in Colorado. This is due, in part, to a lack of new construction. For the past thirteen years, the number of new construction units completed has been below average. Construction costs remain high with supply chain interruptions, so don’t expect to see many new developments this year.
Property values in Boulder steadily increase year-over-year and buyers would be wise to enter into this market as a homeowner rather than a renter. If you’re looking for your dream home in this picturesque foothills hideout, please contact my team.
By Jennifer Egbert. Jennifer is an award-winning, licensed Realtor® with over eleven years of experience. She specializes in Luxury neighborhoods, home builders and current market conditions. Visit jenniferegbert.com, e-mail [email protected] or call 303.619.3373.