For over a year now, Summit County’s real estate market has been red-hot. Across the board, data has shown that average and median prices of single-family homes are steadily increasing, volume is up and the number of days a listing is on the market is dramatically decreasing.
Though the Land Title Guarantee Company’s latest real estate report shows evidence the market is favoring sellers, there’s one statistic hinting that maybe it’s showing early signs of stabilizing.
According to the organization’s report, June 2021 was up 176% in total gross volume compared to June 2020. Still a dramatic swing compared to last year, this percentage is a decrease from May 2021, which was up 304% compared to May 2020.
Steve Crozier, owner of Berkshire Hathaway HomeServices Colorado Mountain Realty in Breckenridge, said he’s seeing buyer demand slowly start to taper off. He predicts this trend to continue in the coming months.
“I would think that we’re going to see, for July, that number go down further because in most cases, we’re not seeing 10 offers in the first day,” he said. “We’re not seeing the aggressiveness and bidding $50,000 over the list price. That is slowing down.”
In fact, Crozier said he’s starting to see some properties hosting multiple open houses, which he says is a sign that the units aren’t selling as quickly as they did a few months ago. Crozier even said in some cases, open houses are advertising incentives — such as free lunches, bottles of wine or a round of golf — in the hopes that it draws in potential buyers.
“We’re seeing multiple open houses on the same property, which indicates to me that it’s not selling,” he said. “If you’re having an open house every weekend, that’s not the same as two months ago when I had 10 offers on the first day.”
Allison Simson, owner and broker of Summit Real Estate in Dillon, also said she’s starting to see early signs that the market is stabilizing. Simson said she’s hesitant to make a prediction, mostly because June was the first month to report a decrease so far this year. Instead, Simson said that this trend will be more concrete once demand for properties drops further.
“That’s what predicts if (the market) is going to be stable or not is if the demand starts to equal the supply, and while yes, I think the demand is slowing a little bit — it definitely, is there’s no questioning that part is stabilizing — it’s still way higher than our supply.” she said.
Crozier said he agrees that the market he’s experiencing now is different than earlier this year.
“I am seeing multiple things happen that all indicate that we’re not in quite the buying frenzy that we were,” Crozier said.
This year’s total gross volume compared to last year has steadily increased, according to Land Title’s most recent report. In January compared to the same month last year, gross volume was up 32%. It dipped to 23% in February, but it was back up by 127% in March. April was up by 242% and May was up 304%.
June was the next month to take another dip, so this prediction will likely be confirmed or denied as July, August and September’s reports are released.
Simson said the market will eventually stabilize, whether that’s in the near future or not.
“That’s what markets do, they go up and they come down,” she said. “It’s a strong sellers’ market right now, but sellers’ markets do move to buyers’ markets. Anyone who thinks this market is going to stay like this and not move has not been in real estate very long.”
For now, Summit County’s real estate market continues to remain strong. The average price of a resale single family home is nearly $1.4 million. In June, there were 245 residential transactions totaling well over $255 million in gross sales volume. Of the 245 transactions, 77 were priced at over $1 million.
The number of transactions jumps to 194 when factoring in residential sales that were priced over $500,000.
According to the report, 27% of the transactions were bought by locals for June. About 45% were bought by people living in the Front Range and about 28% were bought by people living out of state.
Individuals from Texas, Florida and California continue to be the buyers most frequently absorbing properties within Summit County. Of the 285 transactions in June, 105 of those went to Texas buyers. Individuals from Florida account for 48 transactions and California accounts for 31 transactions.