Like the rest of the country, Summit County real estate continues to exceed expectations in terms of property demand and sales prices. The rush to purchase homes amid limited inventory has created a real estate market like no other. As more people look toward picturesque views and a variety of landscape features, it doesn’t come as a surprise that Summit County has become a hot spot.
While some experts predict the nationwide housing market may begin to normalize slightly as we move into 2022, luxury markets and resort areas continue to experience low inventory and high demand. Summit County homes for sale are expected to remain a white-hot commodity in 2022 and beyond.
Luxury home sales are still increasing
Summit County real estate agents are running out of superlatives to describe the local market behavior
over the past several years. Residential gross sales volume during 2021 topped $3 billion, while average residential sales prices shot up 24% from 2020. Single-family home prices averaged $1.7 million, while multi-family home prices averaged $750,000. And the sales price of vacant land eclipsed 2020 figures by a whopping 37%.
According to the Colorado Association of Realtors
, those numbers are continuing on an upwards trajectory during 2022. The average price of Summit County homes for sale (single-family) was $2,274,421 in March 2022, a 29% increase compared to 2021. Numbers for townhouses and condominiums tell a similar story, with an average sales price of $759,628, a 31% increase over 2021.
The average number of days on the market for single-family homes decreased slightly from 40 to 38 days. However, for townhouses and condos, the number of days on the market dropped precipitously from 64 to 17 days — a 73% decrease — as inventory for this category plummeted by 29.7%. Summit County real estate agents expect steady demand and limited inventory to continue driving prices upwards into 2022 and beyond.
Limited inventory leads to increased competition
Even as inventory loosens up nationwide, that is not the case in the Colorado market. With media outlets declaring “shocking lows
” in housing inventory, new listings for single-family Summit County homes for sale dropped 15%
from March 2021 to March 2022.
New listings for townhomes and condos decreased almost 13%
over the same period. Of course, inventory is only half of the supply-and-demand equation. So what do Summit County real estate agents expect in terms of buyer demand as we enter the second half of 2022?
Several recent changes on the local front and national stage are expected to impact the demand for Summit County real estate. Let’s unpack these changes and discuss the scope of their impact on the area’s real estate market.
Increase in interest rates
Some economists predict that the Fed's move to increase interest rates would somewhat cool the demand for homes. With 30-year mortgage rates expected to increase, this prediction seems to make sense.
Second-home and high-balance loans are also expected to increase. However, these are still historically low rates, and while some buyers may feel like they have missed out on the low rates of the past few years, this is more of an issue of perception than reality when you look at the bigger picture.
Value and behavioral shifts
As society evolves, people’s priorities for their day-to-day lives continue to shift, including where people choose to live
. Flexibility in remote work explains the skyrocketing popularity of mountain real estate. Workers who used to be tethered to larger metropolitan areas or commuter train lines now have the option to work on their decks, enjoying a mountain view.
Professionals and their families seek a better quality of life with access to outdoor spaces. Who can blame them if they decide they want to live in Summit County? This shift in where people choose to live may offset some of the other economic factors that would otherwise reduce demand for Summit County properties.
Despite local and national economic and regulatory changes, demand for Summit County real estate remains strong, with home sales prices expected to continue increasing through 2022 and beyond. While this is great news for sellers, homebuyers may be challenged when trying to find Summit County homes for sale.
Don’t let the fear of competition deter you from snatching up a highly sought-after property in the Summit County region. From crystal blue lakes to snowcapped mountains, Summit County offers stunning features that the entire family can enjoy. This coveted piece of paradise is a nature enthusiast’s dream that can only be achieved by understanding the housing market and teaming up with the best agents.
Savvy buyers will want to consult with a local real estate professional who knows what inventory will be available before it is even posted. The experienced team at Nelson Walley Real Estate
are experts in the area and can help guide you through the intricacies of the Summit County real estate market. Nelson Walley Real Estate
specializes in helping clients navigate today’s competitive real estate landscape.