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The song remains the same for Summit County Real Estate

by The Mountain Living Team

Can you see what the future holds?We're still telling the same story we were last year.  Inventory is low which is pushing prices higher, and inventory will continue to drop through the end of the year. 

As of November 18th we have just 355 residential properties on the market in Summit County.  That's 11% fewer properties than the same time last year.  We had 240 residential sales in October.  At that same pace, the inventory we have on the market won't last through the year.  Typically, sales slow around the holidays and through the first of the year and we'll continue to have properties come on the market but our inventory will likely be in the low to mid 200s before the end of the year.  200 may sound like a lot of properties to choose from but realize, that is residential properties anywhere in the county.  From south of Breckenridge to north of Silverthorne, from Keystone to Copper and Frisco and Dillon in between.  It's all price ranges too; studio condos to multi-million dollar homes.  To add to the scarcity, roughly half the residential properties on the market now are priced over one million dollars.  For most buyers, that fact alone takes half the inventory off the table.  For most buyers, there will be less than ten properties to choose from at any given time; even fewer as the purchase price goes lower.

Summit County Colorado Real  EstateThe low inventory often makes buyers ask if they should wait.  If the current trend continues, next summer when we have more properties on the market, prices will be even higher.  If the property you want is out there, I suggest you act now.

The Summit Daily, our local paper, just printed an article about the current real estate market.  Take a look at it by clicking here.

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

 

2016 - a year of scarcity in residential real estate

by The Mountain Living Team

Inventory levelsWe 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.

 

You have probably heard that inventory levels are down in Summit County.  We only have enough properties for sale to get us through the next 3 months.  Of course, more properties will come on the market and carry us into the summer and fall months, our selling season.  However, choices will be tight and competition may be fierce.  

If you are considering buying, now is a great time.  There are still great properties to choose from and the winter months usually mean fewer buyers and less competition for those great properties.  If you're looking for views over Lake Dillon, there are a couple of condos for sale in The Towers in Frisco.  The Towers offers elevator access, garages, plenty of storage and a community hot tub along with some of the best views over the lake available.  There are townhomes in Water Dance that have equally impressive views. These townhomes come with a little more space and higher price tag.  You know you'd enjoy a condo at your favorite mountain.  Why drive when you can just walk or shuttle to and from the lifts each day?  There are some great homes available on the outskirts of Breckenridge too that offer the peace and quiet of a mountain get-away.  No matter what you are looking for, there are still a few good options worth considering.  Even with the fed increasing interest rates, they have remained around 4%, a fantastic rate!  Don't wait to find your Summit County home.

 

The number of properties for sale is climbing... and so are prices

by Meredith Adams

Inventory Trends over the last 2 years - Summit CountyAs we head into summer,  it is typical for the number of properties on the market to increase.  The ski areas have closed, seasonal rentals are done so it’s time for those interested in selling to get their properties ready and put them on the market.  This year is no different in that respect. 

Since mid-April, when most ski areas closed, we have had 364 properties come on the market.  But with properties going under contract and selling, only 108 properties were added to our inventory.  Last year new listings were close to the same amount, 370 properties.  However, that increase added 192 more listings our total inventory. Even though the number of properties coming on the market was about the same, they weren’t being absorbed as quickly.

This year inventory levels are down 27% from the same time in 2014 and a whopping 56% below 2009 numbers.  It’s the same old story around Summit County; decreasing inventory and increasing sales.  We are just now coming to the point where this combination is having a significant impact on property pricing.  Some areas in the county are poised to surpass the prices we saw during the peak of our market during this year’s selling season.

The graph shows the correlation between properties on the market and those under contract.  The improving market can be seen by the narrowing gap between the pending and active properties.

 

Properties in Summit County are selling quickly!

by Meredith Adams

Since the beginning of 2015 inventory levels have remained pretty constant.  There are only 12 more properties on the market today than there were back then.  But that isn’t because nothing new has come on the market.  Properties are coming on every day, they are just being absorbed quickly.

Today there are 150 more properties under contract than at the beginning of 2015.  276 sales have occurred in Summit County during that same time frame.  Still inventory levels remain constant.

This month we should start to see even more properties come on the market.  Inventory numbers should start to grow as we head into the summer months as sellers begin to outpace buyers.

The Summit County real estate market is on track for a strong year.

Summit County Real Estate News Alert!

by Meredith Adams

Inventory levels continue to decline in Summit County

Buyers looking to own real estate in Summit County have been very active in the marketplace as witnessed by looking at the current inventory reduction of residential properties. The inventory of residential properties in Summit County has seen a 38% reduction of properties for sale in just the last 34 months and a 15% reduction compared to just 12 months ago. The current inventory of 853 properties for sale is the lowest level in several years.

Real estate in Summit County might be off a bit in May

by Joanne Hanson

May is beginning to look as if we might have a hiccup in our upward trend line of year-to-date  real estate sales in Summit County, Colorado.    As of today, May 23rd, only 50 sales have closed so far, and we have 89 to do to equal the statistics for May, 2010. While a higher proportion of sales close at the end of the month,  doing  almost as many in the next week as we did in the last three weeks might be unlikley.  Any decrease will probably  be in the 10-15% range, and it will take our year-to-date increase from 22% to about 14 or 15%, still a good number. 

The weather, with frequent snow all month, did not help, as it probably kept people out of the county.  Those that were here, were skiing at Arapahoe Basin, where  they have had huge crowds.

 The sales figures to match or beat for the next couple of months are 89  in June but only 57 in July.  Last year in early summer, there was talk of a possible double dip in the recession which is what probably impacted the sales closed in July.  Looking at the statistics for the closed sales so far this month, the average list to sales price ratio averaged 92.5%.  For a property with a $500,000 list price, that means that it would have sold for $462,500, a pretty good reduction in price.   The range of sales was all the way from 100% of list price to only 75%. 

Inventory numbers are moving up, which is typical for this time of year.  April May and June are the listing season months, and more sales close in September, October and November than any other month.  Our inventory numbers cycle with the seasons as unsold properties come off the market in winter to generate rental income, and come back on the market in the spring.  We still are below last year’s inventory numbers by about 200 units, which is a good thing.  The combination of fewer properties to sell and more Buyers in the market will help to stabilize prices.

 

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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