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.

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.