At the risk of being that idiot that’s pounding the table and screaming “you have to buy now”, (like every other broker), I feel I have to bring this to my reader’s attention. Because, if you knew this and I didn’t, I’d want you to tell me.

If you or someone you know has been on the fence about buying a home in Boulder County, now is the time to act. The real estate market has shifted in the last 90 days, and buyers have more leverage now than at any time in years.

With increased inventory, price reductions, and longer days on market, there is a unique opportunity to find an equity building home at a better price. You should also be able to negotiate better financing terms as well.

Let’s go over some key metrics and terms.

1. Increase in Inventory

• Active Listings: The number of active listings has increased by about 15-20% over the past two months, providing buyers with more options. This increase in inventory is a typical sign of a market moving toward buyers, as it reduces the competition for homes.
• New Listings: There has been a steady flow of new listings entering the market, further contributing to the growing inventory. New listings in markets that I follow are up anywhere from 20-35% in the last 60 days.

2. Days on Market

Longer Days on Market: Homes are staying on the market longer, with the average days on market (DOM)

increasing from around 30 days to 45 days. This increase indicates that homes are not selling as quickly

as they were earlier in the year, giving buyers more time to make decisions.

3. Price Reductions

• Price Reductions: About 25-30% of listings have seen price reductions, which is a strong indicator that sellers are adjusting their expectations to align with the changing market dynamics. The average reduction is around 5-10% of the original list price.
• Median Sales Price: The median sales price has seen a slight decline of about 2-3%, reflecting the adjustments in pricing strategies by sellers.

4. Mortgage Rates

High Mortgage Rates: Mortgage rates remain relatively high, being range bound between 6.5 – 7%, which

has impacted buyer affordability and demand. This environment often results in more negotiating power

for buyers, as fewer people are competing for homes. However, rates are at a six week low right now, and

near the bottom of their recent range.

Reference from Mortgage News Daily: Mortgage Rates Down to Lowest Levels of The Year

5. Absorption Rate

The absorption rate, which measures how quickly homes are selling relative to the number of active

listings, has decreased. A balanced market typically has an absorption rate of 4-6 months, but recent

data shows Boulder County edging closer to 5.5-6 months, indicating a shift towards a buyer’s

market.

6. Buyer activity

Reduced Buyer Activity: Showings and offers have decreased by about 10-15%, reflecting a slowdown

in buyer activity. This trend is partly due to economic uncertainties and high mortgage rates impacting

buyer confidence.

7. Economic Factors

Economic Uncertainty: Broader economic concerns, including inflation and potential recession talks,

and the election, have made buyers more cautious, contributing to the shift in market dynamics.

A savvy broker should be able to negotiate better terms from the seller; think about rate buydowns and

other seller concessions (rate buydown: https://bit.ly/2-1Buydown).

An aggressive and heady mortgage lender will be able to focus on securing lower absolute rates in this

environment due to lower activity.

And a real estate broker that is also a lender, as I am, can beat up both the seller and the bank for you.

These conditions may not last for long. Or they may and who really knows? I sure don’t. But if I thought I

was buying in the next year or 18 months, I’d be asking some very pointed questions right now of brokers

and lenders.

Give me a call for a no obligation consult. You have nothing to lose.

Peace.