One Step at a Time: Climbing Boulder's Real Estate Staircase

Much like politics, restaurant closures, and snow totals, real estate is a hot topic around town. Just as often as Boulderites are checking their stock portfolios, they're also cruising Zillow. Whether it's to peruse new listings or check their latest Zestimate, staying up to date on the real estate market is as important as scrolling the day's headlines. It’s no wonder Saturday Night Live’s recent skit on Zillow fantasies had so many admitting, “That's so me.”

Locally—and nationally—the residential real estate market is booming. Records are being set left and right, and the lack of new listings is creating a figurative war zone for buyers. This frenzy may seem reminiscent of 2006, when prices were similarly on an upward trajectory, only to have the bubble burst a few years later, triggering a global recession. However, in every meaningful way, today’s growth is the inverse of the previous boom. I'll explain how. 

In the mid-aughts, many buyers brought minimal down payments to the table, if any at all. When housing prices stalled and then began to decline, that left owners with no equity, leading to a market collapse. But these days, buyers are more flush, have higher credit ratings, and are putting down more cash up front. Economists agree, the current housing boom is far more stable than the one 15 years ago. 

This stronger-than-ever seller’s market puts buyers in a difficult position. Competition is tough and buyer heartbreak is a given when up against dozens of similar buyers. This isn't a game for the faint of heart, but the spoils are almost always worth the suffering. Presenting offer after offer and receiving denial after denial may feel endlessly discouraging, but it’s worth remembering that the majority of America’s wealth is created through real estate. My favorite adage is, “the best time to buy a house is five years ago.”

For first-time buyers, getting your foot in the homeownership door should be priority number one. This can mean compromising on ideal size, location, finish level, or all three. However, once you have a home to call your own, you’ll see your equity increase and in several years, you can use that equity to step up to a better house. This stair-step approach requires patience, but in the end, can lead to a dream-home scenario.