- The Boulder real estate market should benefit from increases to both inventory and demand.
- Real estate in Boulder has turned into a commodity, as those who are tired of the high prices of Denver look elsewhere for more affordable housing.
- Boulder real estate investing should experience a surge as we get farther into 2019.
The Boulder real estate market has experienced a bit of a slowdown in recent months, but every indicator suggests the pace is about to pick up. Most notably, inventory levels are on the rise, and should be able to help alleviate the issues with demand real estate in Boulder has been experiencing. More people who have been wanting to buy in the area should be able to find what they are looking for. As a result, Boulder real estate investors have every reason to be excited heading into the busiest time of the year.
Boulder Real Estate Market Overview
- Median Home Value: $742,400
- 1-Year Appreciation Rate: 4.3%
- Median Home Value (1-Year Forecast): 2.3%
- Median Rent Price: $2,400
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Median Home Price Boulder
The median home value in the Boulder real estate market has increased 4.3% in as little as one year’s time (from March 2018 to May 2019) thanks, in large part, to the same economic principles impacting the rest of the country: supply and demand. The above average economic conditions in the Boulder housing market have seen to it that demand remains intact, but there simply aren’t enough homes on the market to satiate today’s demand. As a result, prices have increased for the better part of a decade, and now sit at approximately $742,400. It is worth noting, however, that despite years of rapid appreciation, real estate in Boulder still looks as if it can head higher, albeit at a tempered pace. Over the course of the next 12 months, median home values are expected to increase by as much as 2.3%, and could reach upwards of $759,000. That means a few things for local buyers: For starters, prices are only going up for the foreseeable future. Additionally, Boulder real estate investors may be able to take advantage of a bit more appreciation in the near term. At the very least, median home values in Boulder should continue on their current trajectory as long as local inventory can’t keep up with demand.
Boulder Foreclosure Statistics
The healthy state of the Boulder real estate market has had a huge impact on the number of distressed properties in the area. In fact, the ratio of distressed properties in Boulder has been on the decline for a while now. According to RealtyTrac, “In April, the number of properties that received a foreclosure filing in Boulder County, CO was 38% lower than the previous month and 17% lower than the same time last year.”
Of the distressed properties identified by RealtyTrac, 60% are auction homes, which means they have already been repossessed by the loan originator and are going to be placed up for auction in the near future. The remaining 40% of the distressed homes in the Boulder real estate market are bank owned, which means they failed to sell at auction and currently occupy banks’ inventory as non-performing assets.
Each of those homes represent a unique opportunity for Boulder real estate investors, as long as they know where to look. That said, here’s a breakdown of the neighborhoods in Boulder with the highest distribution of distressed properties:
- Lyons: 1 in every 2,581 homes is currently distressed
- Erie: 1 in every 2,938 homes is currently distressed
- Lafayette: 1 in every 6,168 homes is currently distressed
- Longmont: 1 in every 7,755 homes is currently distressed
Distressed properties are few and far between in the Boulder housing market, as the latest bout of appreciation rates has all but eliminated underwater homes in the area. However, Boulder real estate investors that are able to acquire distressed assets may find themselves with a great deal in a highly sought-after market.
Boulder Real Estate Investing
The Boulder real estate market got off to what can only be described as a sluggish start to 2019—at least in terms of what the area has recently grown accustomed to. Thanks, in large part, to low inventory levels, Boulder has seen less activity than it would like to at this time of the year. According to Todd Gullette, managing broker with RE/MAX of Boulder, Inc., Boulder has yet to see enough single-family home inventory to keep up with demand.
“Cities and towns within Boulder County continue to have more buyers than sellers. Boulder County in January had 3.9 months of inventory, which is up 34.5 percent over this time last year (2.9 months) and up 44 percent over January 2017 (2.7 months),” he said. Increasing inventory is certainly welcomed, as more and more people are interested in leaving the high prices of Denver behind to call Boulder their home.
Tight inventory levels have served to temper local real estate investing expectations, but good news is on the horizon. Inventory levels are increasing heading into the busiest time of the year and demand remains persistent. The combination of these two factors suggests a healthy level of activity isn’t far away, which bodes well for Boulder real estate investors.
Boulder Real Estate Market Summary
The Boulder real estate market has certainly cooled off from the blistering pace it exercised in years past. However, as inventory begins to increase alongside growing demand, it’s reasonable to suspect the local housing market to heat up just in time for summer. As a result, prices should continue to increase for the foreseeable future. Those who get in now may be able to capitalize on both demand and appreciation for the foreseeable future.
Have you thought about investing in the Boulder real estate market? If so, what are you waiting for? We would love to know your thoughts on real estate in Boulder in the comments below.
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