When will East Boulder County Real Estate prices cool?
Last year (2018) was a banner year for many real estate agents I worked with, but buyers this year keep asking me "when it will cool?" When will the real estate prices go back down in East Boulder County? I remember hearing this from Tom Tyrell the Broker of Berkshire Hathaway around 2008: "People buying in Boulder can live anywhere in the world." So with that said and the prices in Boulder continuing to get higher, those priced out then come to East Boulder County and further so they can find more affordable options. According to "Boulder Real Estate News" more than 50,000 people commute to Boulder on a daily basis. Those commuters need to live somewhere right?
During one of our countries most recent low points in the economy (2008ish) I've heard that Boulder more plateaued then dipped when it came to real estate pricing. So if during a very difficult time in our history prices merely plateaued, what could cause the prices to fall? Interest rates seem to be steady and recently dropped, gas prices have been steady, and unemployment has been low in Colorado. When you look at East Boulder County cities like Longmont, Superior, Lafayette, and Louisville I only see each working hard to get better. Also having the labels like "best place to live in America" only drives the demand here.
Few would argue that each dilapidated home that is either remodeled or torn down and replaced will only bring more value to old town neighborhoods. With there being still a number of homes that meet this definition in our surrounding area maybe that is the opportunity to get in cheap. But there is competition like builders partnering with homeowners to create the remodeled home then listing it at a major increase. In Old Town Louisville I went to an estate sale summer 2018 and found out the home would be sold "off the market." I was able to meet the owner and get a tour. After my tour I knew the home would not meet my families needs but kept in the touch with the seller to find out what he'd done. He did exactly as I just described and partnered with a builder to upgrade the home significantly then sell it at a greater margin.
So how long will those expecting a dip wait to jump on buying real estate in East Boulder County? I once owned a townhome in Louisville that I bought as a bank owned property around 2006 at about $64,000. I sold this unit in 2010 for $100,000 and recently (March 2018) a unit similar in the same complex sold for $212,000. Ouch I should have kept that unit and ouch others should have bought at $100,000.
Small print: By all means I cannot tell the future and I cannot forecast if buying real estate in East Boulder County will be a good investment. But hasn't it been for many years now? What factors would/could create a price plateau or dip in this area? If one waits another year before buying, what will it cost he/she the following year? If both prices and interest rates go up next year how much less can one afford next year? How much money is wasted renting? What are the tax benefits to owning vs renting?
Good luck out there and be sure to contact your local real estate professional with your questions.