Nationwide real estate data shows a significant decline in new listing volumes across all major U.S. markets, although at different rates and timing. Prior to this week listing volume in Boulder and Broomfield Counties had steadily declined for 4 weeks in a row. The news that real estate showings could resume with the transition from stay-at-home to safer-at-home orders provided encouragement for home sellers and their agents who rushed to get those homes listed.
Unfortunately, new restrictions announced by Boulder and Denver Counties within the last 48 hours could set new listing activity back again. According to ShowingTime, property showings in the state of Colorado started to bottom out about two weeks ago and ticked back up late last week. As of Tuesday, April 28th showing activity in the state was down 72.6% from the same time in 2019 and 70.5% down from this year’s peak in early March.
For the week ending April 29th, new listings jumped almost 150% over the prior week and were down only 28% from the same week in 2019, but almost even with new listing activity in 2017 and 2018. This doesn’t mean our market returned to anything resembling a “normal” market, but it is encouraging. Hopefully that momentum will sustain 2 more weeks until May 8th when extended the stay-at-home orders are scheduled to lift.
Last week (April 22 through April 29) the number of residential and attached homes sold in Boulder and Broomfield Counties was almost 40% less than the same week in 2019. The number of homes placed under contract declined for this week for the 4th year in a row, more an indication of our market’s low inventory than anything else.
Of the new properties listed in the last week, over 42% of those in Boulder and Broomfield Counties were in the $300,000-$599,999 range, an indication that first-time home buyer activity is still strong in our area. This is the lowest percentage of activity in this price range in the last 5 weeks. Over 70% of the properties sold last week in the two counties were in the area’s hubs of Boulder and Longmont, while activity in outlying communities in Boulder and Broomfield Counties was quiet by comparison.
We continue to watch the sell-through rate, the ratio of under contract and pending properties to the number of new listings. The bigger the % the stronger and more active our market is. The sell-through rate dropped from over 120% last week April 15-22 to just under 67% this past week. This could be an indication that stay-at-home fatigue has set in and there simply isn’t enough inventory on the market to capture the interest of the brave buyers still in the market.
We continue to track back to the week that stay-at-home orders went into effect in Boulder and Broomfield Counites to see how relevant market metrics change as quarantining persists. This past week’s statistics are a mixed bag of information. New listings steadily but evenly declined for 4 weeks in a row, followed by a surge last week as agents and sellers eagerly anticipated an ease in showing restrictions. Sold homes have stayed very stable from week to week. Under contract/pending transactions increased 38% over last week as home buyers embraced new ways to view properties virtually. The number of properties withdrawn from the market actually increased over 100% after 4 consecutive weeks of declines.
Most experts agree that housing will lead the way in our economic recovery, and specifically through new home construction. The National Association of Homebuilders maintains that the construction of an “average” home has an impact on our economy equivalent to over $88,000 with income generated by real estate related industries and expenditures related to that home’s purchase. A National Association of Realtors study reported that in Colorado the impact of one home sale is estimated to be even higher at $123,000.
We know there are homeowners who need to sell, and potential buyers who are still in a position and/or have a need to get into the market. Real estate has a significant impact on our local community and as regulations relax over the next few weeks, market conditions will improve.