Proper-Tea Time Episode 2
There have been some changes and surprises over the last 18 months in the Colorado housing market, so let’s discuss trends and home values here in Longmont, CO. With evidence from Kyle Snyder of First American Title, I want to answer your burning questions, like: Is the real estate market slowing down? Is this what historically happens this time of year? What’s so great about Longmont? And should I sell or wait? (I’ll give you a hint now—sell)!
1. Is the market slowing down or are things still hot, hot, hot?
People have voiced concern that the housing market is beginning to show signs of slowing down. Though things were scorching in May and June, the Longmont real estate market is still hot!
In August of 2018, Longmont broke the $500k average home price record for the first time. In October of 2020, that record was broken for the fourth time. This year, however, we’ve seen record home prices from April through July, where we reached over $630k median home price. If we compare that to $502k from last year, it’s clear that the real estate market is still competitive.
Additionally, the number of homes sold in the first half of this year is the same as the number of homes sold in the first half of last year, which hit a record high. It is important to remember to look at market trends over time and not try to interpret monthly numbers as long-term shifts. The Colorado housing market remains competitive, partly because there is still a housing inventory shortage in the U.S. housing market. This is largely due to general population growth and millennials transitioning from renting to homeownership. Currently, 5.5 million single-family homes are needed nationwide.
Now, that doesn’t mean that certain things aren’t cooling off... slightly. Days on market has increased slightly, meaning homes are sitting a little longer before selling. Moreover, the list price to sale price ratio has slightly decreased. In April of 2021, the list/sold home price was at 105%. It peaked in May at 108%, then gradually declined with June at 106%, July at 105%, and August at 103%. But that is still 3% over asking price, which isn’t too shabby!
Remember, the biggest mistake we consistently see sellers make is overpricing their homes. Listing competitively prevents appraisal issues, and you might be pleasantly surprised at the offers you receive. Trust me!
2. Are the trends holding true?
When it comes to both short-term changes and market predictions, you can trust the current housing market trends. Historically, the real estate market tends to slow slightly at the end of summer and early fall as school starts and the weather changes. This has been a market trend for decades. However, it hasn’t been as noticeable in the last couple of years. Now that it’s resurfacing, some people seem nervous.
Well, you’ve heard it here first—there’s no need to be nervous! This is a balanced market shift that is part of normal market trends. Housing prices are still strong, and the demand for single-family homes remains high.
3. What’s so great about Longmont right now?
Homes in Longmont, CO have been in high demand for 18 months now, and that has us wondering: What is so great about Longmont? As Kyle Snyder raves, “It’s the best, it always has been... It makes sense.” But why are people noticing it more recently?
A lot of it has to do with migration trends in the Colorado real estate market. Boulder and Denver, CO are desirable, but they’ve become increasingly expensive. The median home price in Boulder is over $1 million, and Denver isn’t far behind. As affordability becomes a concern, buyers begin looking for alternatives nearby. Many moved from Boulder to Louisville, Gunbarrel, Niwot, and Lafayette—and now, Longmont is booming.
Now buyers are discovering that Longmont real estate is not only more affordable but offers an incredible lifestyle. It boasts a thriving food and craft beverage scene and is a Certified Colorado Creative District with theater, art, and music for all ages. We have a stellar school district, plenty of public amenities, and an unbeatable location near both Boulder and Denver metro area.
Longmont has been the most affordable town in Boulder County for a while now, according to Snyder. The median sales price for Longmont is currently $584k, and it’s going to be a while before it hits the $900k or $1 million range. This makes Longmont one of the best places to buy a home in Colorado right now.
4. Should I sell?
If you’re considering selling your home in Colorado, get off the fence and do it! If you are waiting for the housing market to be red-hot again, you might be waiting a while—and you’re likely to earn less as you wait. Don’t worry about missed opportunities; the best time to sell is when it makes sense for you.
However, when selling, be sure to plan your exit strategy carefully. Home prices are up, meaning you’ll sell for more, but you’ll also buy for more. If you’re thinking about relocating, this could be a great time to explore new opportunities. The pandemic showed us that many jobs can be done remotely—so why not consider a home in Florida, or simply upgrade to a single-family home here in Longmont?
In conclusion…
The Colorado real estate market remains strong and competitive while adhering to a couple of tried-and-true market trends. The value of your home is likely to rise while Longmont prospers as a prime real estate market.
If you are looking to buy or sell homes in Longmont, CO, contact me, Sarah Morrow, for a Realtor® you can trust. Let my tenacity move you!
Be sure to check out Proper-Tea Time: Ep. 2 - Your Home’s Value, and follow the Sarah Morrow YouTube channel for more informative and fun real estate videos! And for even more on Longmont Real Estate, read up in my blogs Permitting and Down Payment Assistance
Let my tenacity move you!
If you’re ready to explore houses for sale in Longmont or need a dedicated Longmont Realtor to list your home, I’m here to help. Subscribe to my YouTube channel, dive into my blog, or reach out with any questions about the Colorado housing market. Let’s make your real estate dreams a reality!