Want to know more about the 2024 Boulder County Real Estate Market Forecast here in the heart of picturesque Boulder, Colorado? The housing market has been a topic of keen interest for both residents and investors. According to real estate giant Zillow, the Boulder housing market is expected to experience a modest uptick, projecting a 2.6% increase in home values by August 31, 2024. However, it’s worth noting that analysts are eyeing a potential 1.9% decline in February 2024, introducing a hint of caution into the forecast. Redfin however, has already reported a 16.1% increase HERE compared to last year, yet Rocket Homes shows a 1% loss Here. So what’s the deal?
These forecasts stem multiple variables that influence the housing market. Previous trends showcase a 0.2% increase in housing values by September 30, 2023, and a subsequent 0.4% increase by November 30, 2023. Yet, the anticipated decline in February 2024 raises important questions about the sustainability of this growth. Every month of the year in 2023 reported more active listings than the previous year with a average of 30% more listings on the market. However the listings that actually sold decreased every month for an average 17.7% reduction according to IRES (MLS). Confused yet?
Diving deeper into the housing market, experts predict a substantial rise in home construction costs, ranging from 25% to 28%. This surge in construction costs could potentially have a cascading effect on the housing market, influencing property prices and affordability. To gauge the market’s resilience, it’s crucial to monitor how these predictions materialize and how the market adjusts to these fluctuations. For Investors, Single family homes again exceeded the price per square foot and price per bedroom of income property signifying our move into a luxury market. For a complete income summary at the time of this article, see 27 Sold and 23 Active Income properties HERE, which in 2023 has so far averaged $391 a square foot and 85 days on the market. Currently active listings are priced on average at $530psf, where is is not unusual for single family homes to command $500-$1000 psf and $500,000 a bedroom closer to Central Boulder. Market rents range from $1200- $2000 a bedroom depending on location and condition and our income cap rate is sliding down to 4.5% requiring more money down and less monthly income on the promise of annual capital gains.
As we navigate the terrain of projections, a critical question emerges: Is a housing recession looming in 2024 with the world is such disarray? Experts, taking a cautious stance, predict that a housing market crash is unlikely to occur in the coming year. Stricter lending standards and ongoing high demand are two significant factors that contribute to this optimistic outlook. The market’s stability seems relatively secure, given the lessons learned from the past and the precautionary measures in place.
BankRate, a trusted financial source, points out that mortgage interest rates have played a pivotal role in shaping the housing market. In 2022, rates witnessed a significant uptick and inflation. Although the Fed does not directly control mortgage rates, lenders tend to take cues from them, resulting in a rise in mortgage rates. The situation might witness a change if the Fed’s war on inflation concludes, potentially leading to a fall in rates. Consequently, this could influence the market’s dynamics and buyer-seller interactions.
The landscape of the Boulder County housing market is further accentuated by key statistics that provide valuable insights into the market’s health. The median home-sale price was predictably higher than the previous year, evidenced by our new tax assessments which came with an average 30-50% increase in valuation. This upward trajectory hints at the resilience of the housing market, despite the challenges posed by the pandemic and other economic factors. However, the U.S. inflation rate as of July 2023 stood at 3.2%, slightly higher than the Fed’s desired goal of 2%, underscoring the need for cautious monitoring.
An essential metric to evaluate the market’s dynamics is the existing supply of homes available for purchase. As of July 2023, the market witnessed a 3.3-month supply of housing inventory, indicating a seller’s market. The inventory shortage places sellers in an advantageous position, as demand continues to surpass supply. This shortage of available homes enhances the desirability of each property that enters the market, creating a competitive environment among buyers and a fast sale for reasonable sellers that take care of their home and provide a proper showing environment and due diligence documentation.
The complexities of the current housing market landscape emphasize the necessity of professional guidance. The role of our licensed real estate Broker can be pivotal in navigating this intricate market in a profitable manner for investors, sellers and home buyers, which can significantly influence your success and outcome in this market.
In conclusion, the Boulder housing market in 2024 stands at an interesting juncture with a almost certain profitable future like the last century, with high demand and low inventory and homes improving everyday in the market. Projections and forecasts provide a glimpse into the potential trajectory, but market dynamics are subject to various influencing factors. While challenges exist in the form of increasing construction costs and fluctuations in mortgage rates, the market’s resilience and stability offer hope for a prosperous year. With prudent decision-making and relying on expert guidance, both buyers and sellers can effectively navigate the intricate landscape of the Boulder housing market in 2024.
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Credit: Original Article Boulder Financial Realty