Overview of the Real Estate Market
If you are buying or selling a home in Boulder County and many of Colorado’s Front Range cities, you will be pleased to know that the real estate market is one of the strongest in the country. Colorado is currently ranked No.2 in nationwide markets. Over the last 38 years, Boulder County’s real estate values have seen an average 5.5% annual appreciation rate.
What is driving this boom? Strong economic trends that include job growth in sectors like technology, tourism, education, housing, and food. Supported by low mortgage rates and gains in per capita disposable income, more people are buying homes than ever before. The good news is that homes are being built in all the surrounding areas that can absorb the growth. And mortgage rates are still at historic 30 year lows in the 4% range. The challenge for buyers is that there are low inventory levels due to people who don’t have to sell sitting back and waiting. The latest uptick in prices has been great, but it makes it harder to find a replacement home here if you are joining the increased pool of people looking to buy. Therefore, people who don’t have to sell are sitting back and waiting.
There is also an increase in millennial buyers who have previously been renting joining the buying pool. Many are single women, which is a first in history. This is a good thing, however, millennial buyers are often putting their expectation of their first home – with appliance upgrades and newer finish out- above the reality of where starter homes typically are in finish out and pricing. The affordable new builds in cities like Erie, Superior, Lafayette, Longmont, Loveland and Fort Collins are helping to meet this appetite. And there are many down payment assistance programs to help not only first time buyers, but seasoned buyers get into a home they can afford.
The Front Range will be in a robust growth trajectory over the next 20 years. Securing home ownership and good investment opportunities are a huge part of living the good life in Colorado.