You might wonder boulder real estate market. Here is the explanation
Boulder Real Estate Market
Denver Real Estate Forecast 2022
Boulder Real Estate Market – For the better part of a decade, the Boulder real estate market has tracked national trends, and 2022 will be no different. Nevertheless, it is interesting to note that Boulder property is beginning to depart from the norm. Predictable patterns in the Boulder real estate market are emerging as the economy braces for a slump. We’ll take a look at the Boulder real estate market outlook for the coming year.
Long-term supply patterns in the Boulder real estate market show an expanding stock of available homes. Yet, it should be kept in mind that the stock is rising from extremely low levels. While Boulder’s 1,193 active listings are higher from the previous year, there is only enough inventory to last approximately 12.8 weeks, or just over three months at the current sales rate. Considering that six months of inventory is considered typical for a stable market, Boulder has a ways to go before it reaches a healthy equilibrium.
Real estate in Boulder is significantly more expensive than the rest of the country, with a typical house value of $1,113,629. The average price of a home in Boulder has risen by 17.2 percent in the past year. To a similar extent to other markets, rising costs resulted from an imbalance between supply and demand. Due to intense competition, the limited supply of homes rocketed in value. Yet, due to the extreme rise in property prices, residents of Boulder anticipate a decline in home worth over the course of the coming year.
Inflationary pressures resulting from the epidemic and years of government stimulus led to a rise in interest rates, which the Federal Reserve was compelled to boost. Because of this, the current 30-year fixed-rate mortgage (30-Yr FRM) average commitment rate is 2.35 percentage points more than it was a year ago. The average rate on a 30-year FRM is currently at 5.22% due to the highest inflation rate the United States has seen in around 40 years. Boulder’s real estate market has seen fewer mortgage applications as a result of the roughly doubled borrowing prices in the past year.
Boulder has one of the highest median property values in the country, making it harder to discover properties with desirable profit margins for flipping. So, Boulder’s real estate investors have begun focusing on long-term tactics, such as renting out their buildings. Mortgage rates may have risen year-to-date, but they are still quite cheap and can be used to reduce initial investment. Investors can boost cash flow from operating rental properties using the money saved by low interest rates.
Figures from Boulder’s Foreclosure Market, Year 2022
According to ATTOM Data Solutions’ Midyear 2022 U.S. Foreclosure Market Report, “there were a total of 164,581 U.S. properties with foreclosure filings” (i.e., default notifications, scheduled auctions, or bank repossessions) in the first six months of 2022. Foreclosures are nearing pre-pandemic levels, having increased by more than 153% compared to the same time last year.
Executive vice president of market intelligence at ATTOM, Rick Sharga, stated that “foreclosure activity across the United States maintained its gradual, steady ascent back to pre-pandemic levels in the first half of 2022.” While total foreclosure activity remains far below historical averages, a sharp uptick in foreclosure starts predicts we may be back to typical levels by early 2023.
For the sake of illustration, let’s say that 2,322 of the nation’s foreclosures in the first half of 2022 occurred in the Colorado real estate market. Statewide, the foreclosure rate increased to 0.09% in the first half of the year, with one foreclosure filing for every 1,073 houses.
Boulder’s housing market is experiencing the same upward trend in foreclosure rates as the rest of the state. Yet, RealtyTrac reports that there are only approximately 12 foreclosed properties in Boulder. All of the city’s foreclosed properties are currently being auctioned off or soon will be. Auctions in Boulder may be the greatest bet for real estate investors wanting to buy at a discount.
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