Proper-Tea Time Episode 2
There have been some changes and surprises over the last 18 months, 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 market is 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 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 average home price statistics from April through July, where we reached over $630k. If we compare that to $502k from last July, it’s
clear that the real estate market is still competitive.
Additionally, the number of sales from the first half of this year is the same as the number of sales from the first half of last year, which hit a record high. It is important to remember to look at long-term statistics and not try to interpret monthly numbers as trends. The current real estate market is active and very competitive, partly because there is still a huge shortage of homes in the United States. This is largely due to general population growth and the transitioning of millennials from apartment living, to becoming first-time homebuyers; currently, 5.5 million homes are needed.
Now, that doesn’t mean that certain things aren’t cooling off...slightly. Houses are sitting a little bit longer on the market. Moreover, the list price to sold price ratio has decreased. Starting in April of 2021, the list/sold price was at 105%. It peaked in May at 108%, and then slowly lowered with June at 106%, July at 105% and then August at 103%. But that is still 3% over asking we are talking about, which isn’t too shabby. Remember, the biggest mistake we consistently see sellers make is over-pricing their homes. List competitively! This avoids 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 blips on the radar and dependable shifts, you can trust the current data. The market used to take a breath at the end of summer and in the early fall as school started and the weather changed. This is a trend that has been reliable for decades. However, it hasn’t happened in the last couple of years, and now that the trend has resurfaced, people seem nervous. Well, you’ve heard it here first—there’s no need to be nervous! This is the usual trend, we just haven’t seen it in a while. And frankly, they really haven’t slowed that much.
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 right now? 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 the natural migration away from social centers that are getting too expensive. Boulder and Denver have major draws with universities, centers of economic interest, food & drink, etc. Yet, the median home cost in Boulder is over $1 million, and Denver isn’t far behind. As these locales get too expensive, people begin to look nearby. From Boulder, people moved to Louisville and Gunbarrel, then to Niwot and Lafayette.
Now buyers are discovering that Longmont is not only affordable, but it has a flourishing food and craft beverage scene and is a Certified Colorado Creative District with theatre, art and music for all ages. We’ve got a stellar school district, plenty of public amenities and a beautiful “backyard,” so to speak. In addition, we are in proximity to both Boulder and Denver. As I say to my viewers, “It’s our time.”
Longmont has been the “Most affordable town in all of Boulder County” for a stretch now, according to Snyder. The median home sale cost for Longmont is currently $584k, and it’s going to be a while before that gets to the $900k or $1 million range. Longmont is the place to be for the foreseeable future.
4. Should I sell?
If you’re considering selling your home, get off the fence and do it! If you are waiting for the market to be red-hot, you might be waiting a while, and you’re likely to earn less and less as you wait. Don’t worry about missed opportunities. We don’t know what’s going to happen. How could we have expected that a pandemic would hit and the market would explode the way it did?
However, when selling, be sure to plan your exit strategy because it may look a little different than in previous markets. Prices for properties are up—which means you’re going to sell for more money, but you’ll be buying for more as well. The pandemic has taught us we can work from anywhere. Where do you want to go? Do you want to work from a home in Florida? Or are you just looking to upgrade to a new home here in Longmont?
The market is looking strong and competitive while adhering to a couple of tried and true trends. The value of your home is likely to rise while Longmont prospers as the bedroom community of the moment.