REAL ESTATE MARKET REPORT
GR EAT E R BOULDE R
January–July 2020
A LETTER TO OUR CLIENTS At Compass, we are inspired by the home in all its iterations, and its importance has never been more apparent. Home has evolved into an all-encompassing space—a safe haven, an office, a classroom, a gym, and more. Some aspects of our lives are changed permanently due to COVID-19, while other adjustments are temporary. What hasn’t changed is our commitment to nurture our community by helping friends and neighbors find their place in the world. For us, our place is right here, in Colorado’s beautiful and scenic Front Range. The landscape is our second home, providing
us with outdoor adventures and natural beauty. There’s nowhere else we’d rather call home than colorful Colorado.
This report is designed to keep you informed of the Greater Boulder real estate market. Specifically, we’re looking at January through July 2020 to see how the global pandemic impacted real estate in our area, and at the remarkable industry recovery that led to one of the hottest summer markets we’ve seen in years. Home has never been so important. With Compass’ advanced technology, deep market data and unparalleled expertise, we can help you navigate the unknowns of this unprecedented time. We’re here to help you find your place in the world.
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HOW WE’VE GROWN In just under two years, Compass catapulted to the top of real estate brokerage rankings in the Boulder area. Our tech-enabled real estate advisors, backed by Compass’ proprietary software platform, artificial intelligence, market insights, and differentiated programs like Compass Concierge, deliver a revolutionary real estate experience to buyers and sellers in Boulder.
No. 2
No. 1
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Brokerage in Boulder by Sales Volume *
Luxury Brokerage in Boulder by Sales Volume $1.5M+ *
No. 1
400+
Brokerage in Denver by Sales Volume *
Agents, who helped a total of 2,513 buyers and sellers make moves across the front range between January and July *
* Denver data sourced from REColorado Office Ranking Report by Office ID by Closed Volume, 1/1/2020 - 7/31/2020. Boulder data sourced from IRES Office Ranking Report by Office ID by Closed Volume, 1/1/2020 - 7/31/2020, and from IRES Office Ranking Report by Office ID by Closed Volume over $1.5M, 1/1/2020 - 7/31/2020.
REAL ESTATE OVERVIEW
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It’s no surprise that the pandemic impacted not just home sales, but also the way Compass serves its clients. When shelter- in-place was ordered on March 25, 2020, real estate activity dramatically shifted. The number of home closings dropped, and new home searches significantly slowed. Our agents, powered by the nimble and robust Compass technology platform, didn't miss a beat in being able to deliver a consistent client experience despite these challenges. While the imposed stay at home order significantly reduced typical spring market activity, Boulder quickly found its footing again in mid-May once shelter-in-place was lifted.
from large urban cities— a reflection of evolving priorities that have come to light over the course of the pandemic. With so many now living a home-centered life, what was once important in a home has shifted. Buyer needs included features to address this such as home offices, pools and private backyards. Also, those that never thought they'd leave city centers were now open to suburban choices, which provided more privacy and space. The short-term impact is clear: buyer demand is high, inventory is low across all housing types in Boulder, and it’s a seller’s market. The long-term impact is less clear, but our expert agent advisors have everything they need to help guide you through your home buying and selling decisions, and would be honored to do so.
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Additionally, Colorado saw an influx of buyers relocating from other states—often
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Maximize the value of your home. Compass Concierge is the hassle-free way Compass agents can help you sell your home faster and for a higher price. From staging to renovation, Concierge transforms your home with zero upfront costs and no interest.
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Learn more at compass.com/conceirge
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A simple solution to bridge the gap between the home you have and the home you want.
Get access to competitive rates and dedicated support from industry-leading lenders, with the exclusive option to get up to six months of your loan payments fronted when you sell your home with a Compass agent.
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Learn more at compass.com/bridge-loan-services
Price your home confidently with the industry's most advanced market analysis technology. In today's ever-changing real estate market, it's more important than ever to work with an expert. Compass agents have exclusive access to powerful pricing technology so they can provide you with a data-informed, up-to-date analysis of your home's sale potential. Let your Compass agent demystify the home pricing process, and rest assured knowing you're listing your home for sale at the right price and time. Want to learn more? Give your Compass agent a call today.
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The only maps we need end in a summit.
laws, HOA accountabilities and everything in between to make sure your transaction is closed accurately and on time. That’s our promise.
With 50,000 successful closings each year — and every single one in Colorado — we know Colorado like it’s our own backyard, because it is. This in-depth knowledge ensures that we effectively account for real estate
Innovative. Trusted. Yours.
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Q: How has the title business in 2020 compared to other recent years?
employees, Virtual Mail-Out (VMO) Closings for those who were very high risk or not able to come in person for Curbside Closings and lastly, in-office Clean Closings. We are now at the phase of in-office Clean Closings where things are thoroughly cleaned down before each use of the closing rooms, all members of closings are masked at all times and other precautions to maintain health and safety for everyone involved. Q: What short-term and long-term impacts do you expect to see in the title industry after Covid-19 and 2020 so far? A: In the short term, we have had to work through the dramatic change to extreme high volume months while trying to balance the need to hire qualified employees as fast as possible. We have see increases in closing documents signed electronically as well as going from buyers and sellers present in closings at the same time to split closings where the two parties do not even meet. Long term, we expect to see continued adoption of e-notary and e-closings as the need has become clear. Since the technology was put together to get us through the pandemic, it only makes sense that legislation for the industry will
make the technology available in the future as we continue to improve efficiencies for clients and customers.
A: Simply put, 2020 has been an unusual year for the title and real estate industries. We have seen record low interest rates which brought with it high refinance volumes, all while the resale purchase market started slow and came to a halt in April. After the worst of the pandemic hit our industry we had a V shaped recovery, with buyer demand as strong as it has been in well over a decade. May, June and July all exceeded previous year volumes making up for April’s stand still.
Q: What do you think people need to know about the state of your industry?
A: Understanding the importance of teamwork. It is not realistic to work as a one-man-band in closings, instead staff needs the support of one another and the company behind them to deliver the highest level of customer experience. Our industry has experienced unexpected come-back levels this summer and although our teams are working extremely hard to get things done by each deadline, the only way to get all of this done is to lean on one another and our resources.
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Q: How has COVID-19 changed the way you do business?
A: COVID-19 brought unprecedented changes to every industry's way of doing business.At Land Title we were lucky to have stayed ahead always having plans for the next phase if things kept escalating and communication was ready to send to clients at the time of governors orders. Changes we implemented included e-signature technology on all documents that didn’t need a notary, Curbside Closings to maintain social distance and minimize risk for clients and
Jim Renshaw Senior Vice President Sales & Marketing
Land Title Guarantee Company 3033 E 1st Ave, Suite 600 Denver, CO 80206 303.906.1915
Q: How has the mortgage market in 2020 compared to other recent years?
COVID-19 has forced us to adapt, to reach out to each other in different ways (Zoom, RingCentral, and other video conferencing meetings), and to work as hard as we have ever worked even while trying to home-school our kids, and possibly having a spouse also working from home. Q: What short-term and long-term impacts do you expect to see in the mortgage industry after Covid-19 and 2020 so far? A: Beyond the tremendous volume we have seen a short-term tightening of mortgage guidelines for “riskier” transactions such as government loans with credit scores under 660, cash-out refinances, and investment property purchases and refinances. This should be a short-term impact. A hopefully long-term impact will be the utilization of hybrid closings, where a borrower can sign the vast majority of their loan documents electronically, and only meet to sign a handful
A: We have experienced unprecedented volume in 2020, beginning in early March, with the onset of the COVID pandemic. So while we were sending everyone home to work, we started setting monthly volume records, like so many mortgage companies. Of course, this volume was primarily refinance volume and the percentage of refinances began exceeding 70% of total volume, which is unusual.
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Q: How has COVID-19 changed the way you do business?
A: We realized what we assumed to be true, that ours is a business where most of us can successfully work from home. However, at the same time, we have also realized that personal connection and seeing teammates face-to- face is a critical part of our process running smoothly, and having people feel connected.
of documents that need to be notarized. This is the precursor to RON (Remote Online Notary) closings where the entire closing can be done electronically. It will be interesting to see if people really want RON closings or if there is that same need for personal connection when signing on such a significant transaction as a loan closing/real estate closing. I think we have seen a change in the appraisal process in that we are receiving many more appraisal waiver options both for purchase and refinance transactions. I think this is an impact that may be here to stay.
of Non-QM (non-Qualified Mortgages), which are mortgages with unique features such as verifying income with bank statements rather than tax returns or pay stubs, but those investors are starting to open for business again. We have seen the notion of taking Fannie Mae and Freddie Mac private raise its head again, and become a prominent theme and we don’t totally know what that means for the long-term health of the mortgage industry. Right now we are reminding people that it’s a great time to refinance or to buy, but to get going on it early because the volume has slowed things WAY down.
Noel Bennett NMLS# 290197 303.302.3848
Alicia Alpenfels NMLS# 296651 303.302.3845
Q: Do you think right now is a good time to buy/sell a home?
Q: What tips do you have for buyers and sellers looking to make a move?
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A: For sure. With rates at all-time lows how could it not be a good time to be a buyer, or a seller who then needs to buy a new home?
Brad MacHamer NMLS# 190059 303.302.3857
A: Get your pre-approval done early as a buyer. Work with your lender of choice early if you are a seller to get your ducks in a row to be a buyer. And don’t forget, if you are a seller, there are ways to buy before selling in many cases. Your lender can help you figure out how that might be feasible, thus avoiding a contingency offer, which we know can be tough in a robust market like we have here in Boulder and the surrounding areas in the Front Range.
Q: What do you think people need to know about the state of your industry?
Portia Noel NMLS# 294962 303.302.3907
A: The mortgage industry, like the real estate industry, has been through some very challenging times recently with the reduction in the types of loans available and the investors who offer those loans. Jumbo loans (those loans over $644,000 in Boulder County) nearly disappeared at the early part of COVID 19 due to the investors trying to evaluate risks in the market (forbearance and defaults). We saw a near-complete shutdown
Premier Mortgage Group 1844 Folsom Street, Boulder, CO 80302 A Division of Cherry Creek Mortgage Co., Inc. NMLS# 3001
Terri Wolf NMLS# 278332 303.302.3841
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HOME STAG I NG
Q: How has the staging market in 2020 compared to other recent years?
first things people think about when selling a home and we want to make the rest of the process as easy as possible, too.
likely to buy your home. Maybe interview a few friends or family members. But don't just ask them what they're looking for aesthetically. Get to know the lifestyle of your target buyer and begin making decisions based on your understanding. Depending on your budget, this could mean everything from a full kitchen remodel, to finally finishing that backyard patio, to simply swapping in a better showerhead. Then, hire us to help bring the fresh space to life :)
A: This year has been absolutely crazy for everyone. For us, homes are selling faster than ever and we're hitting record staging jobs every month. I think it's due to a combination of staging becoming mainstream and homeowners realizing the power of presentation when going to market. With more people shopping for real estate online than ever before, our ability to make homes stand out from the crowd with unique furnishings and stunning photography has been in high demand.
Q: How does Guest House work?
A: Simply tell us about your home at guesthouseshop.com/stage. We'll then send you a staging quote and schedule the install. Our talented interior designers handle every step – from sourcing the best locally-made products to styling the home beautifully. We then photograph your listing, deliver photos for the MLS the next day and market on our Instagram (@guesthouseshop). When the home sells, we simply deinstall and return it as new. Plus, if the buyer purchases anything staged inside, we'll give you a commission as a cherry on top.
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Q: How has COVID-19 changed the way you do business?
A: Our business has made a dramatic shift as a result Covid. We're no longer just a staging company – we're now one-stop-shop for real estate marketing. That means, in addition to offering the highest-quality staging, we're now providing Matterport tours, floor plans, videos and photoshoots directly to agents. We realize that staging is one of the
Get a staging quote: www.guesthouseshop.com/stage
Q: What tips do you have for sellers looking to make a move?
Follow on Instagram: @guesthouseshop
A: We recommend first putting yourself in the shoes of who you think would be the most
Alex Ryden, Guesthouse Founder and CEO
TABLE OF CONTENTS
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2 1 2 5 2 9 3 3 3 7 41 4 5
49 5 3 57 61 6 5 69
Boulder Louisville Lafayette Longmont Niwot Erie Mountain Market
Broomfield Superior Loveland Fort Collins Lyons Nederland
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All data on the following pages was obtained by IRES for the time period ranging from January 1, 2020 through July 31, 2020, and from hometownlocator.com.
4 0 . 0 1 5 0 ° N , 1 0 5 . 2 70 5 ° W
BOULDER
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Sister city to Denver and 30 miles to the north, Boulder boasts thriving business, higher ed, and residential community. Home to the Flatirons and other sites, Boulder residents enjoy backyard access to an outdoor lifestyle.
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BOULDER
POPULATION 106,567
AVERAGE HOUSEHOLD INCOME $110,586
174
226
↑29.9%
H1 2019 Sales
H1 2020 Sales
% Change
2 3
$924,215
$954,093
↑3.2%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
93
59
↓36.6%
H1 2019 DOM
H1 2020 DOM
% Change
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39. 97 78 ° N , 1 0 5 . 1 3 1 9 ° W
LOUISVILLE
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Louisville is located just southeast of Boulder, where many locals work. Its small-town district features trendy eateries and opportunities to get involved with the community, and its proximity to the outdoors makes this a desirable suburb.
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LOUISVILLE
POPULATION 21,967
AVERAGE HOUSEHOLD INCOME $141,385
32
36
↑12.5%
H1 2019 Sales
H1 2020 Sales
% Change
2 7
$670,270
$672,127
↑0.3%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
49
73
↑49.0%
H1 2019 DOM
H1 2020 DOM
% Change
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39. 9 93 6 ° N , 1 0 5 . 0 897 ° W
LAFAYETTE
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Neighboring Louisville, Lafayette is a Boulder suburb, commutable to Denver. Lafayette features bungalows, ranch housing, townhomes, and apartment complexes. Access to open parkland and a thriving downtown district makes Lafayette a popular place to live.
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LAFAYETTE
POPULATION 29,538
AVERAGE HOUSEHOLD INCOME $115,448
50
54
↑8.0%
H1 2019 Sales
H1 2020 Sales
% Change
3 1
$561,178
$589,637
↑5.1%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
66
51
↓22.7%
H1 2019 DOM
H1 2020 DOM
% Change
3 2
4 0 . 1 67 2 ° N , 1 0 5 . 1 0 1 9 ° W
LONGMONT
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This outdoorsy suburb is a short 15 miles northeast of Boulder. Situated near Rocky Mountain National Park, adventures and vistas make this neighborhood community a favorite in the area.
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LONGMONT
POPULATION 99,381
AVERAGE HOUSEHOLD INCOME $102,474
182
185
↑1.6%
H1 2019 Sales
H1 2020 Sales
% Change
3 5
$456,034
$489,653
↑7.4%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
52
55
↑5.8%
H1 2019 DOM
H1 2020 DOM
% Change
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4 0 . 1 039 ° N , 1 0 5 . 1 70 8 ° W
NIWOT
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This quiet town is located in Boulder County, south of Longmont and features a variety of homes from condos to luxury estates. A charming downtown district is punctuated with a farmers market and summer outdoor concerts.
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NIWOT
POPULATION 4,106
AVERAGE HOUSEHOLD INCOME $171,096
6
11
↑83.3%
H1 2019 Sales
H1 2020 Sales
% Change
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$980,953
$1,041,235
↑6.1%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
111
125
↑12.6%
H1 2019 DOM
H1 2020 DOM
% Change
4 0
4 0 . 0 5 03 ° N , 1 0 5 . 0 5 00 ° W
ERIE
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Erie, located east of Boulder and about 25 miles north of Denver, features an array of housing options, from traditional ranch, to luxury, to condos and townhomes. The Erie Town Fair and Hot Air Balloon Festival are draws around the region.
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ERIE
POPULATION 28,003
AVERAGE HOUSEHOLD INCOME $148,516
74
77
↑4.1%
H1 2019 Sales
H1 2020 Sales
% Change
4 3
$561,488
$558,044
↓0.6%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
58
49
↓15.5%
H1 2019 DOM
H1 2020 DOM
% Change
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4 0 . 07 2 2 ° N , 1 0 5 . 3 5 4 4 °W
MOUNTAIN MARKET AREA 6
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Consisting of towns tucked into mountain sides, historic mining communities, and lush mountain landscapes, this is the perfect area for those who want to live surrounded by nature while being within reach of the city. Towns that make up this region include Jamestown, Gold Hill, Salina, and Seven Hills, among other eastern mountain communities.
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MOUNTAIN MARKET AREA 6 *
* Detached single family only, January 1 - July 31, 2020
206
205
↓0.5%
H1 2019 Sales
H1 2020 Sales
% Change
4 7
$742,492
$742,033
↓0.1%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
85
77
↓9.4%
H1 2019 DOM
H1 2020 DOM
% Change
4 8
39. 9 2 0 5 ° N , 1 0 5 . 0 8 67 ° W
BROOMFIELD
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This convenient suburb is located between Denver and Boulder, and is home to its own business district. Because of its excellent location, housing options are diverse including starter homes, apartments, condos, custom homes, and luxury properties.
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BROOMFIELD
POPULATION 72,783
AVERAGE HOUSEHOLD INCOME $124,484
683
638
↓6.6%
H1 2019 Sales
H1 2020 Sales
% Change
5 1
$549,686
$576,451
↑4.9%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
28
28
0.0%
H1 2019 DOM
H1 2020 DOM
% Change
5 2
39. 95 2 8 ° N , 1 0 5 . 1 6 8 6 ° W
SUPERIOR
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Outdoor lovers embrace Superior’s proximity to the Rocky Flats National Wildlife Refuge, as well as its easy commute to both Boulder and Denver. As it gains popularity, modern homes and small businesses grow in this small town with big vistas.
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SUPERIOR
POPULATION 13,069
AVERAGE HOUSEHOLD INCOME $162,585
28
27
↓3.6%
H1 2019 Sales
H1 2020 Sales
% Change
5 5
$645,425
$626,123
↓3.0%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
46
35
↓23.9%
H1 2019 DOM
H1 2020 DOM
% Change
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4 0 . 3978 ° N , 1 0 5 . 075 0 ° W
LOVELAND
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Loveland locals love the outdoors! Close to Estes Park and Rocky Mountain National Park, Loveland is laidback and adventurous. Located 35 miles north of Boulder, and just 14 miles south of Fort Collins, Loveland has a small town feel with easy access to cities.
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LOVELAND
POPULATION 78,402
AVERAGE HOUSEHOLD INCOME $88,512
178
277
↑55.6%
H1 2019 Sales
H1 2020 Sales
% Change
5 9
$409,267
$412,923
↑0.9%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
72
68
↓5.6%
H1 2019 DOM
H1 2020 DOM
% Change
6 0
4 0 . 5 8 5 3 ° N , 1 0 5 . 0 8 4 4 ° W
FORT COLLINS
6 1
This small city meets college town has a vibrant downtown district that is bike friendly. Fort Collins has national parks nearby and its architecture ranges from new builds and modern ranch to traditional craftsman and Victorian styles.
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FORT COLLINS
POPULATION 172,862
AVERAGE HOUSEHOLD INCOME $87,935
286
337
↑17.8%
H1 2019 Sales
H1 2020 Sales
% Change
6 3
$435,714
$455,463
↑4.5%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
53
55
↑3.8%
H1 2019 DOM
H1 2020 DOM
% Change
6 4
4 0 . 2 2 47 ° N , 1 0 5 . 2 7 1 4 ° W
LYONS
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A small town at the crest of Rocky Mountain National Park, Lyons offers outdoor adventures with easy access to Boulder. Lyons boasts an artsy downtown, and takes pride in Lyons sandstone, which is seen in local and state architecture.
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LYONS
POPULATION 2,137
AVERAGE HOUSEHOLD INCOME $120,477
8
18
↑15.0%
H1 2019 Sales
H1 2020 Sales
% Change
6 7
$633,787
$597,176
↓5.8%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
53
43
↓18.9%
H1 2019 DOM
H1 2020 DOM
% Change
6 8
39. 961 4 ° N , 1 0 5 . 5 1 0 8 ° W
NEDERLAND
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Located 17 miles west of Boulder, Nederland is a mountain community with quick access to Eldora Mountain Resort, among other outdoor activities. Homes in Nederland are inspired by the location, as seen in wood cabins and mountain estates.
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NEDERLAND
POPULATION 1,559
AVERAGE HOUSEHOLD INCOME $80,231
6
12
↑100.0%
H1 2019 Sales
H1 2020 Sales
% Change
7 1
$563,299
$604,243
↑7.3%
H1 2019 Average Sales Price
H1 2020 Average Sales Price
% Change
53
60
↑13.2%
H1 2019 DOM
H1 2020 DOM
% Change
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F INAL WORD
knowledge and state of the art technology allow us to expertly navigate you through your move. Whether you find yourself seeking more outdoor space, a robust home office, or closer proximity to loved ones, we’re here to guide you home.
The COVID-19 pandemic has had a direct impact on real estate during the first half of this year. While activity temporarily slowed in April and early May, it’s clear that Colorado real estate is in higher demand than ever. With the current unprecedented volatility of the real estate market, our industry-leading
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BOU L D E R , COLORADO \ R EAL E S TAT E MAR K E T R E PORT \ JANUARY–J U LY 2 0 2 0
Compass is a licensed real estate broker in Colorado and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.
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