I’m starting to see articles about the slowing real estate market. The latest statistics, as seen in this report, certainly don’t support any cooling whatsoever! The second quarter of 2021 will be remembered as one of the most crazy times we have seen in our market. Despite lower than normal inventory, sales during the quarter were at the highest level since we began publishing The Kearney Report in 2007. Because of the pandemic, the comparative statistics are wonky but this past quarter had more sales than the bounce back third quarter of last year and 16% above the second quarter of 2019.
During the quarter, multiple offers were the norm rather than the exception. 64% of the sales during the quarter closed for above the list price. Overall during the quarter, properties sold for 4.9% above the list price. This includes 292 properties that closed for less than list price. When looking exclusively at the 1,049 properties that sold at a premium price, the average premium paid was $8.62% or $63,000. The competitive bidding caused by high demand and a low supply of homes on the market has caused prices to jump quickly.
It’s just a snapshot in time, but across the county, the one year appreciation is around 20%! The median price for sales during the second quarter was $685,000 (includes all typed of properties), this is 29% higher than the $530,000 median price of just a year ago. The median price of residential properties (both condos and single family) in the City of Boulder during the second quarter was $862,500 and the average price was $1,156,825.
At the end of the quarter inventory was 25% lower than it was a year ago and 30% lower than it was two years ago. This is caused by two factors: fewer owners selling their homes and houses selling and closing very quickly. For reference the end of month inventory in June 2014 was 2,159 and this year it was just 1,189. A 45% decrease!
Houses are selling quickly! On average, it took 19 days to place a house under contract. This is down from 32 days a year ago. Another statistic that measures the strength of the market is the absorption refresh rate. It shows how quickly the current inventory would be depleted given the current sales rate if no new listings were to come to the market. A balanced market is 6 months. Anything less is a sellers market and anything longer is a buyers market. At the current inventory refresh rate of 2 months we are firmly in a sellers market.
For sellers this continues to be a really great time to sell. It seems that the best strategy is to price the home close to the recent comparables and let the buyers take it higher. Sellers who try the opposite, price it high because the market is so strong are not having as much success. Buyers are either quickly learning what type of aggressive offers are needed to succeed in winning bidding wars or they are stepping aside and waiting for a quieter time in the market. As the market slows a touch, it seems we are seeing a few more potential buyers step back and wait.
As always it’s good to remember that the real estate market is always changing and is cyclical. The pandemic and the post pandemic (are we through it yet?) property rush, which is being seen nationwide, could not have been predicted and has twisted the normal cycle in a new direction. In the meantime homes continue of sell and as always, I’m actively helping buyers and sellers successfully close transactions. I’m always here for you to be of service and would be honored if I’m your first call when you need real estate advice. Enjoy the report and stay in touch!
The full report can be viewed or downloaded below. Here are a few screen shots of the first few pages.
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