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Summit County 2017 - Year in Review

by The Mountain Living Team

Another year is behind us.  That means it's time to look back and reflect on the previous year and then think about what the next year will look like.  In the Summit County real estate market 2017 was an active year and my initial thoughts are 2018 will continue with more of the same.  Let's take a deeper look into the 2017 numbers and see how we came to those conclusions.

2017 residential sales were up 5.4% over 2016 with 1984 sales in Summit County.  Monthly sales fluctuated with some months better than 2016 and others falling short.  Overall the increases won out.

2017 had $1,385,947,000 in residential sales.  That's up 23% from 2016's sales volume of $1,124,067,000. Some of that increase came from a 46.6% bump in the number of sales over $1million.  In 2016, sales at $1million or more only made up 11.8% of the total sales.  In 2017 that number jumped to 16.5%.  In fact, the 70 sales at $2million or more nearly doubled the 38 sales in 2016.  

Average residential sales price in 2017 was $698,562 That is a 17% increase from $596,006 in 2016.  The increase in higher end sales certainly impacted the average sales price but values increased across the board.

The number of cash buyers in the market is about the same year over year at just under one third of all buyers.  The low interest rates continue to make borrowing more attractive, even to those that have the means to pay cash.

59.8% of homes sold in the first 30 days in 2017.  Homes were still selling quickly in 2016 with 54.8% under contract within 30 days.

Summit County has been suffering with low inventory for a couple of years now.  We currently have just 319 homes on the market in the entire county.  That's only a 2 month supply on average.  A balanced market would see about a six month supply.  We are definitely in a strong Seller's Market.

Condos and townhomes made up 63.8% of the residential sales in the county.  Currently, they only make up 41.3% of the inventory.

Low inventory is going to be the strongest force driving the 2018 market.  If inventory levels continue in similar fashion in 2018, we can expect prices to continue to increase.  There is still demand, even now during a typically slower time of year.  There is no indication that demand will slow into the coming year.

Inventory levels and the real estate market

by The Mountain Living Team

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.”

SOLD!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

 

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Photo of Jason & Meredith Adams Real Estate
Jason & Meredith Adams
Mountain Living Real Estate
PO Box 4115
Frisco CO 80443
888-666-0844