Following along with a national trend we’re seeing, the Boulder real estate market is cooling down, and this is good news for buyers. You should definitely invest in this housing market, as it’s got plenty of investment opportunities. Now if you’re planning on buying a Boulder investment property in 2019, and you want it to be a smart investment, read up on the market conditions first.
Boulder Real Estate Market Trends 2019
Before investing in any real estate market, the first questions you should ask yourself are: What is the market’s current state? and What will it look like in the future? We mentioned that the Boulder real estate market is experiencing a cooldown. But what does this mean exactly?
A Buyer’s Market: Inventory Is Up, House Prices Are Down
Although it started off as a seller’s market, the latest reports show that Boulder Colorado real estate for sale is staying on the market longer, and housing prices are dropping. There haven’t been any drastic changes for us to call it a volatile market, so there’s no need to worry on that front. However, just like any other, the Boulder housing market does shift from one side to the other from time to time.
Home prices in the Colorado real estate market on average are all dropping. According to a report from the Colorado Association of Realtors, the statewide median price of single-family homes went down 1 percent to $407,000. Condos and townhomes went down 1.6 percent to $310,000.
Related: Colorado Housing Market 2019: Why and Where to Invest
Taking a look at numbers from the second quarter of 2019, Boulder County saw an increase in active listings by 9.4 percent. Also, Boulder County houses for sale spent an average of 33 days on the market before finding a buyer (this is 10 days longer than last year). Mashvisor’s data tells us that the average days on market of Boulder houses for sale is 67. Currently, according to Redfin, homes in the Boulder real estate market sell 1 percent below the list price.
All of these factors are positive reinforcement for buyers looking to invest in the Boulder real estate market 2019. Seeing that interest rates are still low, and it’s a more balanced market, real estate investors should explore their opportunities in Boulder.
Home Sales Are Up Since Last Year
Inventory levels in the Boulder real estate market are higher than they’ve been in 5 years. So even though buyers are taking longer before settling on a home purchase, when compared to last year’s stats, home sales are actually higher. There were 15 percent more sales in July 2019 than there were in July 2018. Looking at home sales throughout the year so far, Boulder house sales are 2 percent higher than last year.
Boulder Real Estate Market Statistics: Rental Performance
If you’re investing in the Boulder real estate market with a buy and hold strategy in mind, you need to know how Boulder rental properties are performing. Using Mashvisor’s rental property calculator, we’ve got all the data you need to evaluate a return on this type of investment in the Boulder real estate market.
Let’s start out with the current median property price of $949,932. Yes, it is high. But this could be explained by the fact that there is still strong real estate appreciation in the Boulder real estate market (values have gone up by 3.8 percent). Appreciation is a good thing. The high median shouldn’t worry you too much as this is just the middle price point in the Boulder real estate market. Which means half of the inventory in the market is priced well below this point. So real estate investors can definitely find much cheaper properties with higher returns. Boulder’s average monthly rental income of $2,418 in a more affordable neighborhood will give investors a positive cash flow.
Related: Learn How to Calculate Annual Rate of Return for Rental Property
Airbnb Boulder Is Illegal for Non-Owner Occupiers
If you were planning on following a short-term rental strategy for your investment property, “Is Airbnb legal in Boulder?” should be the first question you ask. Taking a quick look at the Airbnb regulations in Boulder will give you a crystal clear answer.
Airbnb short term rentals in the Boulder real estate market are only allowed when you’re renting out a primary residence or an accessory dwelling unit (ADU). This means only owner-occupied short-term rentals are allowed. Listing a secondary home or an investment property on Airbnb Boulder is not legal. Short-term rental operators have to register with the city and get a rental license, paying a fee of $130.
Related: 13 US Cities with the Least Airbnb Legal Issues in 2019
Where to Invest: The Best Boulder Neighborhoods
Now that you know how the Boulder real estate market is looking for buyers in 2019, it’s time to start searching for an investment property. To get you started with the best chances at making a profitable investment, use our data. Here are the top-performing neighborhoods for a traditional rental property investment in the Boulder real estate market 2019.
All the following data is provided by Mashvisor’s Investment Property Calculator. Learn more about our product.
Noble Park
- Median Property Price: $159,957
- Price per Square Foot: $222
- Price to Rent Ratio: 8
- Average Days on Market: 30
- Monthly Traditional Rental Income: $1,710
- Traditional Cash on Cash Return: 4.1%
Tantra Park
- Median Property Price: $530,000
- Price per Square Foot: $397
- Price to Rent Ratio: 15
- Average Days on Market: 102
- Monthly Traditional Rental Income: $2,920
- Traditional Cash on Cash Return: 2.3%
Sale Lake
- Median Property Price: $566,203
- Price per Square Foot: $291
- Price to Rent Ratio: 21
- Average Days on Market: 44
- Monthly Traditional Rental Income: $2,196
- Traditional Cash on Cash Return: 2.2%
East Aurora
- Median Property Price: $409,613
- Price per Square Foot: $405
- Price to Rent Ratio: 19
- Average Days on Market: 13
- Monthly Traditional Rental Income: $1,783
- Traditional Cash on Cash Return: 2.1%
Use Our Property Finder
The best way to quickly and easily find a lucrative investment that matches your criteria is to use our Property Finder Tool. Sign up for free to try this tool out. We’ve already used the tool and have located two promising income properties currently listed for sale. Check out some quick stats on them:
Investment Property #1:
- List Price: $137,000
- Estimated Value: $136,678
- Comparable Rental Income: $1,840
- Cash on Cash Return: 5.34%
Investment Property #2:
- List Price: $199,838
- Estimated Value: $365,976
- Comparable Rental Income: $1,700
- Cash on Cash Return: 4.77%
To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.