I know I have been saying this for months, and I’m going to keep saying it: This summer is going to tell the tale of our market health since summer is always our high real estate sales season. What we are seeing now is some price softening, longer days on the market, and the need to price competitively in order to sell. Interest rates combined with STR regulations, have made investor/second home buyers, who want to generate income on their properties while not using them, put these purchases on hold. The investment numbers have never really made sense and people bought mountain properties as a lifestyle choice. With higher interest rates, the cost of owning real estate has increased and without a correlated increase in rents, potential buyers are not purchasing as much as in the past. This in turn is softening real estate prices and causing longer days on the market.
Compared to last April, number of sales are down 31% and sales volume is down 30%. Median sales price is down about 1% and price per square foot price is down 8.4%. Properties are closing about 2% below list and median days on the market is 11.

Price Softening

You can see in this chart how median pricing with a trailing 6-month analysis shows slight signs of softening for the entire Summit Market.

Note in Silverthorne, with the same analysis, there are more dramatic signs of price softening. This is due to Wildernest (no STR licenses available) experiencing price softening.

And here is Breckenridge. The Breckenridge market covers the most properties but includes MANY properties that have lost the ability to get a STR license. This, along with interest rates, are pushing down prices.

Days on Market

This chart shows median days on the market as 9 for April 2023 in all of Summit. That number is low because we have more new listings bringing down the median number. Remember a few months ago we were around 40 DOM.

If we look at the data using a rolling 6-month analysis, the median days on market is 19.

While there are many ways to look at days on market, what we can see from this data is that days on market is increasing over the crazy days of 2020 and 2021, but as more new properties hit the market, the DOM will be reduced (i.e., there are more listings with low DOM). As the summer progresses and we see how the market absorbs the inventory, this is a key metric I will be watching.

For more in depth analysis, see these reports for all of Summit County.

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