If you follow real estate at all in Colorado, you’ve surely caught wind of the meteoric rise of property values in the Boulder area. The city is certainly a different place than it was when I was attending graduate school! And so with the start of a new year, I thought I’d reach out to one of Boulder’s leading realtors for some insight on where the market may be going. I spoke with Danielle Davis of First Summit Realty and asked her a handful of key questions…
[Ryan] First off, can you tell us a little about First Summit Realty; the company’s beginnings and how you’re different?
[Danielle] Great question! Before I started First Summit Realty, I was part of a top-producing team in Colorado. After many years of working with them, I made a decision that I wanted to focus on quality, not quantity. So, I opened a brokerage that was customer-centric. I wanted everything we did to focus on doing the absolute best for our customers. And we’ve accomplished that!
We are literally obsessed with excellence in all that we do. Although we do significant volume, clients are not numbers to us. We spend considerable time getting to know our clients’ goals, personal situations, timelines, and needs. These days, your choice of realtor really matters. There are lots of pitfalls that buyers and sellers can encounter in a real estate transaction. Our market knowledge, contract negotiation, and our award-winning customer service are second to none. Our most important goal is to create raving fans with each transaction. That’s the metric by which we measure our success.
We all know that home prices in Denver and Boulder have really increased in recent years. Are we in a bubble? Or is the landscape relatively stable?
I get asked this one a lot. The wild appreciation that we’ve seen over the last few years has really been a product of supply and demand. The year 2016 marked the lowest inventory (fewest homes on the market) since 2005. Additionally, we’ve seen a large number of people jumping into the market due to historically low interest rates. Couple that with the increase in job creation, especially in high paying sectors. Plus now, it’s possible for first time home buyers to purchase a home due in part to loan programs with down payments as low as 3.5%. It makes for a competitive seller’s market which allows for a rapid increase in pricing.
Looking forward, it seems 2017 is showing some indications of stabilizing. The biggest unknown is what inventory levels will look like. The increasing interest rates will likely be the catalyst for many to make the move they’ve been putting off. Whatever lies ahead, it’s going to be an exciting year in real estate!
What market do you think has the greater potential in the next five years: Boulder or Louisville/Lafayette?
All three of the markets you mentioned behave very differently. The market in Boulder exists in its own bubble in many ways. For the first time this year, the average price of a home in Boulder went above the one million dollar mark. For that reason, Boulder has become unattainable for many homebuyers. That has created an eastward migration to both of the other towns you’ve mentioned – Louisville and Lafayette. Louisville has seen rapid appreciation for many years in a row now. Year-to-date, single family homes in Louisville have appreciated a whopping 17%. Lafayette is also seeing very healthy appreciation with single family homes appreciating 9%, year-to-date. The numbers suggest that Lafayette has the most room for appreciation in the upcoming years.
What are three key tips you can provide to anyone looking to buy their first home?
I love this question! We teach a first time home buyers course, so I have a lot to say on the matter. For the purpose of the interview, I’ll try to limit my response. There are a few things that I think are really important. One, find a great local lender. Too many times I’ve seen buyers get into a jam by going with the wrong lender. It can result in added stress, delays, and/or putting your earnest money at risk.
Second, pick a great realtor. I know this sounds like self-promotion, but it’s really not. For many, buying a home is the biggest financial decision they’ll ever make. There’s a lot on the line. It’s imperative to choose someone with an understanding of the market and who will represent your best interests.
Just remember, home buying should not be stressful, it should be a fulfillment of a dream.
Check out First Summit Realty online, here.