Real Estate Information
Summit County, CO: Mountain Living Real Estate Blog
The Mountain Living Team
Displaying blog entries 1-10 of 259
When 2016 ended the year with slightly fewer sales than 2015 it gave us some pause. We began to wonder if this was an indicator. Has the steady increase in our residential real estate market begun to stutter? Unfortunately, there was no one to give us an answer. All we could do was wait and see what would happen in the coming months and re-evaluate. Well, just one month has gone by and so far, the market is still looking strong.
January residential sales in Summit County posted strong sales, up 29.8% over January 2015 with 113 sales. That beats January sales for the last 9 years and 14 of the last 17 Januarys! The only years with stronger January sales this century were 2001, 2006 and 2007.
As usual, Breckenridge had the bulk of the January sales with 42%. Frisco contributed the least with just 8% of the sales. That could be partially due to the very low inventory levels in Frisco. Frisco has only 4% of the inventory in the county but managed 8% of the sales. Dillon is in a similar situation with only 3% of the inventory but carrying 11.5% of the January sales.
Both Land Sales and Partial Ownership Sales were strong in January. January sales in those categories, however, barely make a dent in the annual sales numbers.
We will continue to watch the market as we push further into 2017. January is giving us no indication that the market is stalling and it is actually looking very strong. It's impossible to know the future all we can do is try and spot the subtle clues we see and hopefully interpret them correctly. Let us know if you have questions about the Summit County real estate market. We're here to help with any of your Summit County, Colorado needs.
If you haven't been to Breckenridge during the snow sculpture championships you need to make it a point to get here soon. It's amazing what these people can do with a block of snow. I can barely build a snowman let alone sculpt some of the intricate designs these artists carve out. 2017 is no exception. This years sculptures are worth a visit! Consider a night time viewing too. Colored lights shine on the whittled snow creating beautiful displays and a completely different experience than you'll have during the day. It's free to see the sculptures located in RiverWalk in Breckenridge. These warm temperatures make it hard for the artwork to last the entire week so wait until the last day to visit. Weather permitting, they will be around through Super Bowl Sunday, February 5th. This year's winner was China although my personal favorite was created by the local Breckenridge team.
When the real estate market is hot, homeowners sometimes wonder why they need a real estate agent to sell their home. An appraisal will tell them the right price. All they have to do is tell people their home is for sale, maybe put an ad in the paper, and they will have an abundance of buyers. What they may not be considering is what happens after they find a buyer.
Usually a home is an emotional purchase. Buyer and seller will be dealing with their emotions when negotiating price and potential repairs. Emotion has a tendency to cause problems in negotiations. What are you going to do if the person on the other side starts to cry? Or if they are angry and yelling at you? Your real estate agent is often repositioning the emotion into a constructive element.
Once you’re under contract there are dates and deadlines. There are lenders and title companies. There are inspectors and appraisers. If you’re using a purchase contract approved by the Colorado real estate commission it is long and full of legal jargon that is difficult to decipher. Having someone on your side to help with all these details is great, especially if something goes awry.
Your real estate agent does so much more than just put your home in the MLS. A lot of behind the scenes work goes on in every transaction we handle. The sale or purchase of your home is often the biggest financial transaction of your life. Wouldn’t you prefer it be handled by a professional?
2016 was very much a seller's market; very tight inventory and rising prices. Buyers struggled to find properties, often compromising or waiting. Indecisive or out of town buyers often missed properties as they were snatched up by ready buyers. More properties than usual seemed to come back on the market because quick acting buyers, after doing further research, decided the property wasn't right for them. Moves between properties in the county were more difficult because replacement properties were hard to come by. That caused many sellers to hold off on selling.
Residential inventory is down 24.7%
Residential sales were down 4% year over year.
Average sales price for residential properties in Summit County is up 5.8% to $595,390.
Average price per square foot for residential properties is up 6.9% to $376.45
The average days it takes for a residential property to sell is down 26.8% to 82 days, just under 3 months.
The list price to sales price ratio for residential properties in Summit County is 97.42%. That's slightly better than 2015's 96.63%
The most expensive home to sell in 2016 sold for $6,400,000.
Breckenridge has the highest average sale price at $781,274.
Copper Mountain has the lowest average sale price at $381,719.
Land sales are improving but it is still a buyer's market in most areas.
There are just over 300 residential properties for sale in all of Summit County. Around 600 properties would be a more reasonable amount of properties for this time of year. During our most recent downturn, Summit County had around 2000 residential properties available for sale.
No one can say for sure where the Summit County real estate market is headed. I anticipate the first half of 2017 will be more of the same with tight inventory and rising prices. The second half of the year is still too far away.
If you want to park on Main Street in Breckenridge you've got to pay.
In an effort to eliminate long term parking happening on town streets, the town of Breckenridge has rolled out pay parking. Main Street as well as surrounding roads now have parking meters requiring registering your license plate and/or payment. Rates vary based on location but generally the first 15 minutes are free, although you do need to register your plate. You don't need to have change in your pockets to feed the meters these days but you will need to have a credit card or have a smart phone with the Passport Parking Mobile Pay App installed and payment set up within the app. The mobile app offers great features like adding time from your phone and storing all your license plates.
The feedback I have heard so far is all positive. There are more parking spaces available on Main Street making finding a spot much easier. The app makes it easy to pay and rates are reasonable.
I haven't tried to park in Breckenridge since the meters have been implemented so I don't have first hand experience yet. Any comments about your experiences with the new pay parking are welcome.
With the low inventory levels in the real estate market buyers are being forced to look outside their initial target area in order to have more to choose from. That means the area that they have been following during their search may not be where they end up looking and/or buying. As a result, they can be less informed about the area and what to expect in property values.
Recently, buyers we have been working with expanded their search from Frisco to The Highlands in Breckenridge. They were curious as to how The Highlands compares to single family homes in Frisco. I did a little research and put together a few charts to help them determine if The Highlands was, financially, a place they wanted to be.
The average sale price in the Highlands is much higher than it is in Frisco. Because of the higher price point I think it makes the market more volatile; reacting more substantially to economic trends.
The average price per square foot is surprisingly similar given the difference in sales prices. Frisco is more inconsistent. I believe that is because the single family homes in Frisco vary more in age and quality than we see in The Highlands. An abundance of any type of home sales can swing the averages for that year.
The average list price to sales price ratio tells us how much sellers are coming off their list price. This is based on the current list price at the time of the sale and doesn't include any price reductions made prior to an offer being accepted. More properties on the market typically will push sellers into deeper discounts in order to secure a buyer.
This chart tells us that most of the time a Frisco home will sell quicker than a home in the Highlands. It also shows us the average days on the market is a largely fluctuating number and that we are currently in a downward trend meaning homes are selling quicker than in the past.
As with any averages, it must be understood that before making matter of fact claims the numbers must be dug deeper into. A few sales can impact an average made from a limited section of data. The Summit County market is a small market making it more susceptible to a few sales. If you have questions about any of these statistics we are happy to dig deeper into them and provide you the information you need. Just let us know via email or a comment on this post.
Real estate, like most commodities, is a supply and demand market. Low supply and high demand create a tight market. High supply and low demand create a saturated market.
During a saturated market, there are an abundance of properties. That abundance gives buyers their pick of properties and makes sellers compete to get one of the few buyers out there. That competition drives prices down and the condition of the properties up as sellers search for an edge. Buyers have all the control resulting in the real estate term “Buyer’s Market.”
Tight markets have few properties to choose from and too many buyers for those few properties. That can create multiple offers on properties and bidding wars between buyers as they compete for the property. Tight markets drive home prices up, increase the number of cash offers and decrease the contingencies in contracts as the buyers try and get the sellers attention. Not every buyer can find a property to buy, however. They end up watching the market and waiting for another home to come along. Sellers have all the control in this market, thus the term “Seller’s Market.”
Our market is definitely a Seller’s Market. Inventory is low and demand high. Prices have been pushed up over the summer and we have buyers waiting on the sidelines for a property. This time of year our inventory levels drop as many sellers or would-be sellers rent their properties for ski season or use them themselves and they wait until after ski season to put it up for sale. Our buyer demand goes down somewhat too because buyers are too busy skiing and enjoying winter in Summit County. They don’t bother with looking at real estate. This winter will be a little different. There are a lot of buyers out there that wanted a place last summer and couldn’t find one. They are still waiting for something to come along. New listings over the winter months will get more attention than normal from those buyers. That extra demand will continue to fuel the increasing pricing and properties will continue to be snatched up relatively quickly. When next summer arrives, the supply of buyers on the sidelines will be somewhat depleted and there will suddenly be more properties on the market for them.
If you are considering selling your Summit County home, this year is a little different than years past. You’d be wise to list ahead of the competition and grab one of those buyers that missed out last summer. If you’re a buyer, hang in there, something will come along eventually.
The market condition is like a pendulum. It is never still; always moving from one type of market to another. We’re currently almost as far as the pendulum can travel in one direction. At some point, it will start to swing the other direction again.
Contact The Mountain Living Team today and make the most of the current real estate market.
Here's a related post you might enjoy:
2016- A year of scarcity in residential real estate
We currently sit at 404 residential properties in the entire county for sale. Of those 404, 213 are priced over one million dollars. Of the 203 Summit County residential properties that sold in October only 25 were priced over one million dollars. That means 178 people spending under one million dollars in just one month. We only have 191 properties under one million dollars on the market right now. That’s a severe shortage! This isn’t the first time the market has looked like this during 2016. It is the tightest market we have seen but every month this year has a very similar story. Not many properties for sale. With monthly sales averaging approximately 150 homes per month we need closer to 900 properties on the market at all times.
Inventory levels do fluctuate seasonally every year. Our highest inventory levels are generally seen in the summer and dip to its lowest point at the end of the year. Our peak inventory level was just under 700 this year, hit in early August, and we haven’t hit our low yet. As you can see from the chart, we have been seeing inventory falling steadily since 2009.
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