Boulder Real Estate News - January 2015


Beautiful Aspen Home

Another Housing Bubble?

The most common question BoulderHomeSource agents are being asked is "Are we in another housing bubble?" We looked at the data from 1935-2014 to find out.

As you can see from the graph below the black line represents historically where with normal inflation housing prices should be. You can clearly see the high and lows of 2007. (CONFIRM WITH GRAPH) Are we in a bubble? Yes, but a very, very tiny one. Prices are only a small percent off where we'd expect them to be.

What does that mean for home buyers and sellers? The tiny bubble we see is only part of the picture. To determine if it's a good time to buy or sell you must also consider interest rates and inventory. Interest rates continue to be low meaning homeowners can buy more house for the same amount of money. That's a pro in the buy column. Inventory is low, as often seen this time of year, but surprisingly transactions are still up. That means houses on the market are selling, a pro for sellers. 

Bottom line, with low interest rates, low inventory and a healthy market, it's a great time to consider making a move in real estate.