What's happening in the Summit County Real Estate Market?
Is the real estate market crashing?
The real estate market of 2020 and 2021 was never going to last forever. We are seeing shifts in the Summit County Real Estate market.
We have to remember that the real estate market accelerated due to historically low mortgage interest rates that were put in place by the US government to help the economy after the COVID-19 recession.
So what does a real estate market look like if it isn’t super-powered by interest rates that we may never see again?
According to the National Association of Realtors, from 2013 to early 2020, US home prices rose at a moderate annual rate of about 5%. In the Summit County area between 2013 and 2019, we averaged just over 7% annual appreciation. And in 2020 and 2021, we averaged between 20-24% appreciation in a hyper seller's market.
A healthy real estate market doesn’t include multiple offers on every property. A healthy real estate market does include price reductions and in a healthy market, many homes are on the market for months.
After a hyper seller's market in 2020 & 2021, most experts predict 2022-23 will be more NORMAL.
Experts also say the housing market isn’t set up for a price decline due to the ongoing imbalance between supply and demand locally and nationwide. We will likely see moderate price appreciation this year.
ALSO...let's chat about absorption rate- or the rate at which properties are "absorbed" by the market. Last year, there was fewer than 1 month of inventory on the market. As of this writing, that number has risen to 1.6 months. As a reference, 1-5 months of inventory is considered a SELLER'S MARKET. 6-7 months is BALANCED MARKET and 8+ months is a BUYER'S MARKET.
So, we are still in a strong SELLER'S market, but the number of people lining up at the door to get in has declined a bit. The demand is compressed a bit due to the rising interest rates and stock market drops.
Every home and every home sale is unique. Let’s not focus on the fear and change from this hyper-seller's market, Let's focus and get excited for normal!
Highlights for April 2022 Market Analysis:
$222M Total Sales Volume
156 Total Transactions
$1.3M Average Sale Price
$860 Average Price Per Sq Ft
Live/Active Market Information provided by Title Company of the Rockies
(Click on town names below to view town stats)
Breckenridge This week the median list price for Single Family Homes in Breckenridge, CO 80424 is $3,299,998 with the market action index hovering around 27. Market action index of 31= Very Slight BUYER'S Advantage. Inventory has increased to 83. The median list price for condos in Breckenridge is $1,125,000. Market index hovering around 45 = Slight Seller's Advantage.
Dillon This week the median list price for Single Family Homes in Dillon, CO 80435 is $1,550,000 with the market action index hovering around 43. Slight Seller''s Advantage. The median list price for Condos in Dillon is $1,124,500 with a market action index at 62. Strong Seller's Market.
Frisco This week the median list price for Single Family Homes in Frisco, CO 80443 is $1,950,000 with the market action index hovering around 38. Slight Seller's Advantage. The median price for Condos in Frisco is $1,000,000 with a market action index at 50 Strong Seller's Market.
Silverthorne This week the median list price for Single Family Homes in Silverthorne, CO 80498 is $2,595,000 with the market action index hovering around 25. Slight BUYER'S Market. The median list price for Condos in Silverthorne is $849,500 with the market action index hovering around 57. Strong Seller's Market.