Significant change in the Broomfield real estate market is being fueled by inflation and rising interest rates.
Buyers in the Broomfield real estate marker have been impacted significantly as interest rates approach 6%. This is actually good news for buyers continuing their home search because they will likely be met with far less competition when making an offer on a home. The downside is many buyers have far less purchasing power than they did several months ago. As you’ll see shortly, many of the month over month statistics have seen very little change, signaling a cooler market as we move into the hot summer months.
As the real estate market cools we are beginning to see an increase in active listings across the Broomfield market. In May, there were 88 single family homes as well as 29 condos and townhomes listed. This is an increase of over 22% for single family homes and 16% for condos and townhomes in just one month. Some of this is seasonal as many sellers wait to list there homes until after the school year, but market conditions are also having an impact on the number of available homes.
In May the Broomfield Real Estate market saw a decrease in total sales for both single family homes as well as condos and townhomes. The 89 single family homes sold is a month over month decrease of nearly 12% and a year over year decrease of 22%. Condos and townhomes had 25 sales, a decrease of 26% month over month and 22% year over year.
One significant increase in the Broomfield real estate market is pending sales of single family homes. 109 homes are currently pending which is a month over month increase of 17%. Condos and townhomes tell a different story as pending sales are down 7% month over month and 14% year over year.
Average Sales Price
It seems like the massive increases in average sales price from month to month are over. Last month, the average sales price for a single family home was just over $787,000. This is a month over month increase of just 0.25%. Compared to the year over year increase of 13% it’s easy to see that things are definitely changing. Condos and townhomes had an average sales price of nearly $522,000. This is actually a month over month decrease of approximately 1%. However, average sales price is still up over 21% over the past year.
Days on Market
The cooling real estate market has not had an impact on the amount of time homes spend on the market just yet, with median days on market remaining at 4 days for single family homes and 5 days for condos and townhomes. This is a stat that has gone nearly unchanged over the past year when competition among buyers has been at its highest but I anticipate this number will increase slightly as we move further into summer.
What About Interest Rates?
In the current real estate market with rising interest rates, if you were pre-approved more than 30 days ago you need to update your pre-approval with your lender and make sure you still qualify with today’s current rates. The fed will likely announce a rate increase in the coming days, so if you’re under contract on a home make sure your interest rate is locked to avoid this upcoming increase. If you’re building new construction and your rate isn’t locked it would be a great idea to check with your lender to see if they offer an extended rate lock program where you can lock in a rate today even if you aren’t closing for several months. It’s really important to frequently monitor rates and lock them in as soon as possible so you don’t put yourself at risk of no longer qualifying for your new home.
Helping You Make Informed Decisions Regarding Broomfield Real Estate
I produce this monthly update to provide you with a high level overview by looking at the patterns and trends.
I hope to help you make sense of the numbers so you can make informed decision. It is my hope that this report helps you to ”See the Big Picture and All the Details!”
If you see a segment of the market that you would like additional help with understanding please contact me. Or if you desire a specific Property Valuation Report that I routinely prepare for my clients, please contact me.
This report covers Broomfield Single Family Homes and Broomfield Luxury Homes.
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North Star Team at Compass