I’ve been looking at lots of historical data as I’ve been getting lots of questions about real estate investments and what happens now. Though none of us have a crystal ball we do know we went into this unprecedented time with low inventory, huge demand and a strong economy. Homes are still going under contract during these times of no in person showings allowed (that will change April 27th when we can go back into homes). Sellers still need to sell and buyers need to buy. The spring market will hopefully get a chance to come bouncing back starting in May.
Today I want to look at months supply of inventory over the last 10 years. The red line is Boulder County. I think how dramatic this graph is really paints a picture. Since 2011 we are in the “new normal” of inventory. Not just in Boulder County but across Northern Colorado (the blue line for Entire MLS). This new level of inventory will keep the market strong. After a decade I’m not sure we’ll see any significant increases in inventory. It appears we are in fact in a new normal.
This next graph looks at the average sales price of the Entire MLS and Boulder County over the last decade. The low point was in March 2010 and the high point in March 2020. In uncertain times we often question things such as the strength of the real estate market and home values, but going back to data and longer term numbers puts everything in perspective.
I can pull this data back many years and specific to areas if you are curious. Reach out and let me know how I can help you in any way.