In the Big Leagues Now… Boulder’s Luxury Market Hits it Out of the Park in 2021

The Boulder area is known as an expensive market for homebuyers in the Denver Metro. With the exception of 2019 when things stalled out a bit with only single-digit growth, the market for properties priced $1 million and over has grown approximately 12% to 30% every year from 2015 until 2021. In 2021, the number of residential properties sold over $1 million in Boulder and Broomfield Counties increased an unprecedented 71% year over year.

WK Real Estate in Boulder has been a local leader in distinctive home sales since the company was founded in 1976. WK is a multi-year member of Luxury Portfolio International® (LPI), the luxury marketing division of Leading Real Estate Companies of the World® (LeadingRE). LeadingRE is the world’s largest network of premier, locally branded real estate companies with decades of collective experience in the marketing and sale of distinctive homes.

We recently had an informative panel discussion with Elaine Collins, Jim Green, John Hoeffler, Sibyl Liedtke, and Barry Remington, some of WK’s top broker associates, about Boulder’s ongoing luxury real estate boom. Here are a few key snippets from this knowledgeable group of real estate professionals.

The luxury market in Boulder and Broomfield Counties saw unprecedented growth in overall sales volume and price appreciation in 2021. What do you attribute this to?

John Hoeffler: This trend is not unique to Boulder, it’s a national trend in many desirable markets that have limited supply. The economy is good, wealth has increased for many people, especially given that the stock market has been on a run for 10 years now.

Elaine Collins: The pandemic made some people realize they can live anywhere, and this created unprecedented supply and demand issues in Boulder. Many factors contribute to making the Front Range an attractive place to live, including that we have no hurricanes or earthquakes. Our area provides lots of opportunities for entrepreneurs. Housing supply at all price points has been low for years, and demand just got higher.

Barry Remington: With the pandemic and move to work-from-home, we saw more than a few buyers from places like Los Angeles. Now that they can work from home in Colorado, or anywhere, and they have the money, Colorado looks like a bargain. This is a unique place – with Boulder and Denver you have cities, but not as densely populated as other places. Young people want access to skiing and the outdoors, and they like the feeling of the area without the California price tag.

Sibyl Liedtke: Some baby boomers are finally getting rid of their large family homes. There’s also been an influx of people moving to the area for jobs and lifestyle. Many parents are helping their adult children buy housing in the area now. In fact, this is almost a given for younger people who want to stay in Boulder and/or whose parents want them to stay! But, many people that are already here aren’t selling, as there is nowhere for them to go.

How do you feel this marked change in our market has affected, or will affect, our community?

Elaine: Change is inevitable anywhere. Our entrepreneurial community here is so great; we have the University of Colorado, and a thriving downtown, but downtown is changing. There are not as many independent “mom and pop” stores anymore. Back in 1984, the attitude was “all are welcome,” but our community is losing diversity in terms of age. Our generation’s children can’t afford to live here anymore because they are priced out of the market.

John: Our community is definitely becoming more affluent. And, it’s getting tougher for younger people to purchase with low down payment funds. Boulder shifted about 15 years ago. Previously, demand for real estate came with job growth. Then in the 1990s, Boulder became more of a lifestyle destination, not dependent on job growth, for people who can afford to move here. This accelerated with the pandemic. Things just exploded when people realized they could live and work from anywhere.

Do you expect this demand to continue in 2022?

John: I see this demand accelerating in 2022. In the first 6 weeks of 2022 alone, prices have already increased 10%. I am working with clients whose home we priced in the November/December time frame for a February market launch that we are now re-evaluating and likely pricing 10-15% higher.

Jim Green: Mortgage rates are creeping up, but that doesn’t really affect anyone in a luxury price range. We may not have record-breaking price increases in 2022, but they will go up. Inventory will be limited, even at the highest levels.

Sibyl: For buyers, I don’t see demand changing much in 2022. Some buyers will tire and step out of the market for a bit, but they’ll be back! But sellers aren’t ready to go live with their listing until any recommended repairs and improvements are done, and they have identified their replacement home. I have some sellers that have just stopped – they are ready to sell, but they can’t find anywhere to go. It’s slim pickings even at $3 million.