This is Part 2 of our 3-part Interview Series. If you missed it, go back to Part 1.
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.
Did you notice any trends or patterns in the demographics of your selling clients? And what about buyers… is there a certain type of buyer that our area appeals to?
Barry Remington: Our sellers are people that might be moving out of the area, downsizing to a smaller, but still luxury home, and looking to increase their wealth. We also have some clients that are waiting for a new build to be finished. We’ve seen quite a few buyers in their late 30’s and our sellers seem to be in the 40’s to 50’s range.
Sibyl Liedtke: I agree, these are not the same buyers or sellers that they used to be. My clients are younger, and very well educated when it comes to real estate. They watch the market enough to really understand the numbers.
John Hoeffler: Many of my sellers have adult children, or children in college ready to graduate, have large homes, and are considering what comes next. There is huge demand in a certain age group for main floor primary bedrooms, and those are really hard to find in Boulder. Many clients will scrape an existing home and build a ranch floor plan. For buyers, if they are not coming from similar real estate markets, like coastal cities, it’s difficult to move to Boulder.
Jim Green: My high-end clients this past year have been well off, and owner-occupants, not investors. Some are grandparents relocating to be near grandchildren. Others were people that had previously bought in the mountains and decided they wanted a location closer to town, even walkable. Like other agents, I have had empty nesters moving because their home is now too big for them.
What subdivisions or communities, in particular, have you seen the most growth or change in? Are there others that you think might be the next to turn that corner?
John: Prime locations are west and central Boulder, west Table Mesa and Devil’s Thumb. There was recently a home in Devil’s Thumb that had multiple interested parties and it was a $3.9 million scrape. In Chautauqua, there was a single-story home that went around $2 million, or around $1000 per square foot, that needed a complete gut job.
Barry: There seems to be a land rush basically anywhere west of I-25. Available properties are becoming very limited. But, people still want to be in Boulder for lots, or down in the Cherry Creek or Parker areas. The recent Marshall Fire put this in overdrive. We’ve seen $50,000-$75,000 increases in places like Erie, which before had been slower to increase than other communities. But, not now. Every area is increasing, and prices and costs will continue to go up with inflation. The sentiment is “get in now.”
Jim G: Niwot and Somerset saw more activity this past year. I do also see Windsor growing, with the influence of neighboring Fort Collins.
Sibyl: I agree, Niwot, Somerset, and White Hawk Ranch are places where buyers get more for their money outside of Boulder. Frasier Meadows has gotten more desirable because everyone wants a 3000 square foot ranch home now and that neighborhood has more of those floor plans. In South Boulder, it used to be all about Devil’s Thumb, but now the demand is coming down the hill where there are still some good-sized homes. North Boulder and Wonderland Lake are always crazy.
What home features and amenities did buyers prioritize last year? Are there others that you think will become more important in 2022?
John: Turnkey homes seem to be the priority, and these are selling with multiple offers. Buyers are very sophisticated now – they want the best locations, exceptional design, green features, and the highest-level finishes. They also want better outdoor spaces that might include a fireplace, terrace, and a heated pool, all for entertaining outside which became important during the pandemic.
Depending on location, some buyers are willing to roll up their sleeves to do a renovation. But with the City of Boulder permit and approval process, it could take up to three years from start to finish for completion. And architects, designers, and contractors are really busy right now. The build process could take even longer in the County.
Elaine: Our high-end clients are now thinking about homes in a very different way. Everyone wants a great kitchen to cook and gather in. Adults in the home want separate home office workspaces. And, swimming pools have become very popular; it’s one feature that allows you to have entertainment at your own home for your children and guests.
Barry: Views are really important too. If people are relocating to Colorado, they want to be able to see the mountains, especially in the upper price ranges. Due to COVID, our clients looked for more space and bigger has been the “new” better. Previously, listings in White Hawk Ranch were sitting for up to 18 months, then COVID hit, and 2 sold in a month in that neighborhood.
Jim: I agree with Barry, White Hawk Ranch got lots of play this year!
Sibyl: Outdoor spaces – firepits, lighting, etc… can create a whole other entertainment space that can be used almost 9 months out of the year here. I also see demand for open concept floor plans, whether buyers have children or not. A three-car garage is also necessary, more so to accommodate their toys and sports equipment!