A well-functioning market consists of two sides: suppliers who offer a particular good for sale and consumers who purchase those goods. In the Boulder Valley residential real estate market since 2012, there have been more consumers looking to buy homes than there were sellers offering homes for sale, which has led to a long appreciation period for homes. Now, however, it appears that the number of buyers is dropping as is their willingness to pay ever-increasing prices.
Spotting the trend
First, how do we know that there are fewer buyers in the market? The most direct measure of buyer activity that my company tracks (courtesy of Broker Associate Mike Malec) is the number of showings per available listing. From examining the data, it is fairly easy to see that this year’s showing activity is markedly below the recent boom years, but is still above the levels present during the recession.
Second, to further substantiate this decline in buyer activity, we can look at more indirect measures, such as average sales prices, available inventory of homes on the market, and average time a home will be on the market before sale. Each of these markers indicates a decline in buyer activity. Through May of this year, the average price of a single-family home in Boulder has fallen 0.6 percent, while the average attached unit has fallen 4 percent, compared to the same timeframe last year. This indicates that there are fewer buyers competing for available homes to the point where home appreciation rates have stalled. At the same time, the amount of homes available on the market has increased nearly 20 percent for single-family homes and almost 50 percent for attached ones, while the average time on the market for single family homes has gone up 5 percent and nearly 20 percent for attached ones. These statistics indicate that those buyers in the market are becoming choosier and are able to take their time making decisions.
Based on the above discussion, it seems that there are fewer buyers in the market and that those who are in the market are more cautious, but why?
It does not appear that our local economic conditions explain the drop in buyer activity. According to the State Demographer’s office, people are continuing to move into Boulder and Broomfield counties, albeit at a slower rate than previous years (though the city of Boulder has seen its population declining in the last two years). And local unemployment levels continue to be historically low.
Economic conditions at the national level are softening, to the point where the Fed is discussing interest rate cuts, so these conditions may play some role. But, interest rates are actually about half a percent lower than they were at this time last year, which would appear to weaken that argument.
Could it be the weather?
Another possible explanation I’ve heard is that our unusually cold and snow winter could have suppressed buyer demand as people were less willing to trudge through the snow to go see houses. While this is plausible, all else being equal, we would have expected to see that pent up demand being released as the weather improves, but we just have not seen that play out in the data yet.
Whatever the cause of the decline in buyer activity may be, local real estate legend Larry Kendall of the Group Inc. Real Estate in Fort Collins always says that buyers are the smartest people in the market, so they may be acting as the proverbial canary in a coal mine, meaning that they could be a leading indicator that our market is shifting from a seller’s market to either a balanced or buyer’s market. If you are a seller, be wary of pricing above the market in these shifting conditions.
Originally posted by Jay Kalinski is broker/owner of Re/Max of Boulder.
Cooler temperatures and mountain snow are reminders that it’s time to prepare your home for winter. Here are steps to take to get ready for falling leaves and freezing temperatures, as recommended by House Beautiful.
1. Prepare your gutters
Clean and well-functioning gutters are a must for winter. Now is the time to clear gutters of leaves and debris and replace damaged sections.
2. Ensure against drafts
Windows are a major source of heat loss in the home. One simple solution is to eliminate drafts with weather stripping. To check for drafts, close the door or window on a strip of paper, and then slide the paper. If it slides easily, it’s time to replace your weather stripping.
3. Disconnect outdoor faucets
Take action sooner rather than later to avoid frozen and bursting pipes in your home. Drain and disconnect your hoses from outdoor faucets before the first freeze.
4. Protect outdoor furniture
Outdoor furniture lasts longer and looks better if it is protected from winter snow and freezing temperatures. Either store the furniture inside for the winter or cover it with a waterproof furniture cover.
5. Repair driveway and sidewalk cracks
When water freezes in small cracks, the small cracks become big cracks. It’s easy to prevent by filling those small cracks with concrete crack sealer. Your drive and walkways will look much better over the years – and will be safer – if you take this preventive step.
6. Fertilize your lawn
As your grass prepares for winter, it needs to be fertilized to prevent stress and damage through cold temperatures. When days shorten, turf grass shifts food reserves from leaves to roots. Fertilizing grass in the fall feeds the roots and paves the way for a healthy green lawn when spring comes.
7. Check your snow blower
Go ahead and dig your snow blower out of the garage now. Check the oil, tires, and shear pins and crank it up now, before the snow flies. That way, you’ll be ready for that first snowy morning.
For more helpful tips, read the full article at https://www.housebeautiful.com/lifestyle/cleaning-tips/a22652916/fall-home-maintenance-checklist/