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This week the MEDIAN LIST PRICE for BOULDER, CO is $1,925,000 with the market action index hovering around 37. This is less than last month's market action index of 39. Inventory has decreased to 177 single family homes while inventory of condos has held steady at around 65.
The average days on market has increased to 49 days for homes listed at $950K and below
And is now 52 days for homes listed at $1.5M and below
And is now 77 days for homes listed at $2.5M and below
The market has been cooling over the last several months but why? Ultimately it comes down to several factors like supply and demand, consumer confidence, jobs and affordability. What I believe it comes down to however is demand destruction. We can thank the Federal Reserve for the ongoing rising of interest rates which is having a significant impact on affordability.
Be careful what you read…
“US house prices declined in August. This is the 1st time since March 2011 that the index has seen 2 consecutive months of decline.”
House prices fell nationwide in August, down 0.7 percent from the previous month, according to the latest Federal Housing Finance Agency House Price Index.
For the nine census divisions, seasonally adjusted monthly house price changes from July to August 2022 ranged from -2.0 percent in the Mountain division to +0.4 percent in the New England division.
The 12-month changes were all positive however, ranging from +7.4 percent in the Pacific division to +16.2 percent in the South Atlantic division. Therefore, the HPI rose 11.9 percent from August 2021 to August 2022.
As far as rates go…it has been a wild week. As you might have heard, the Fed increased short term rates by 0.75% and are saying they will continue to raise rates for the remainder of the year. So hold your seats as it will continue to volatile for the remainder of the year.
