“I think everyone wants to say that there is no inventory and everyone is fighting for the same listings, but the fact is that we are selling more properties than in the last … (two years),” said Dana Cottrell. real estate specialist. Summit Resort Group broker and former President of Summit Realtors.
Based on a company guaranteeing land ownership April reportSummit County’s real estate market is showing no signs of slowing down.
According to Cottrell, the volume of transactions is already surpassing the level of 2019. According to the report, there were 632 residential transactions in the first four months of this year. This is almost 43% more transactions compared to the same period in 2019, the so-called last normal sales year, when there were 443 transactions.
This difference is even more widespread compared to 2020. According to the Land Title report, there were only 387 transactions made between January and April 2020, meaning transactions this year have grown by about 63%.
“Everyone wants to talk about no inventory and no inventory because as soon as a property comes to market, within a few days, it goes under contract,” Cottrell said.
Dennis Klauer, broker and owner of Real Estate of the Summit Inc., said this is because buyers don’t go through some of the traditional steps usually taken in the buying process.
“We see very few stocks and people bringing in money to close,” said Klauer. “This is why contract closing times are shortened so dramatically because buyers do not necessarily require inspections, appraisals, or loans. Thus, with these three elements, the time factor can be significantly reduced. “
In their view, part of the problem with buying a home in Summit County is not that inventory is limited, but that inventory moves quickly due to quick buy decisions.
In April alone, there were 191 residential home transactions totaling $ 203.5 million in gross sales, according to the report. About 64% of homes sold were over $ 1 million.
Compared to March 2021 and April 2021, the number of homes sold in the over $ 2 million category also increased slightly. In March, 26% of homes sold were sold for $ 2 million or more, while in April 27% of homes fell into this category.
Homes sold for between $ 1 million and $ 2 million speak even more about the expensive market. In March of this year, 33% of homes sold fell within this range. In just a month, this number was 37%.
“The price range from $ 1 million to $ 2 million represents 37% of the market,” Cottrell said. “… It’s a pretty big piece. (It’s) crazy that sales of over $ 3 million are 14%. It’s huge. This (category) is definitely growing. “
In general, the cost of single-family homes in April increased by 14% compared to 2020.
So who is buying this residential property? According to the Land Title report, 46% of the properties purchased in April were from people living in the Front Range area, and about 29% of the properties were sold to local buyers outside the state.
This means that very few locals make up the buying pool. In April, only 25% of real estate was sold to local residents, and in March this figure was even lower – 18%.
Looking at the statistics for the first few months of the year since the beginning of the year, the numbers paint a similar picture. Between January and April of this year, only 20% of properties were sold to local residents, 47% were bought by Front Range residents and 33% were bought by local out-of-state buyers.
This is definitely a new wave that Cottrell says she’s been seeing for a while now.
“I used to always say that we were about the third local, the third Front Range and the third foreign and international,” Cottrell said. “International and foreign (share) remained about the same as these 33% (since the beginning of the year). But where it really changed … the locals only make up 20% of it, so it just fell, fell, fell. “
Among non-Colorado buyers, the states whose residents are most likely to buy property in Summit County are Texas, Florida, California, Missouri, and Illinois.
Clauer said he believed this surge in shoppers was driven by lifestyle changes, a phenomenon that was largely fueled by the pandemic.
“I think there has been a decrease in the number of people who were considering buying in the future – and by the future I mean people and families who were considering buying real estate in the mountains in the next two to five years – and I believe that COVID has squeezed it out, ” Claire said. “People are becoming more aware of where they are in their lives, where they are in their careers and where they want to be. And to some extent, people pay more attention to what they want to get out of life, rather than what they definitely want to invest in their careers. And what they want out of life is more time for the family and the opportunity to change the lifestyle they are used to, perhaps in the city. “