When the pandemic shut down the country, real estate sales began to boom. Through waves of shut downs and strict mask rules, no open houses and no carpooling to properties, home sales continued to boom. Now, things are loosening up, your mask can be in your pocket most times, open house signs litter the roadways, events and activities are happening again. It’s fantastic! More normalcy is everywhere. However, there is still no normalcy in Summit County’s real estate market. May’s property sales report shows us the boom continues on.
May property sales report
In May 2021 there were 170 residential sales in Summit County. Summit County includes the areas of Breckenridge, Copper Mountain, Dillon, Frisco, Keystone and Silverthorne. Breckenridge is the largest and, therefore, makes up the lion’s share of the sales. In May, 62 of the 170 sales were in Breckenridge, 36%. That’s a little lower than the typical 40% but nothing to be concerned with.
170 sales in May blows away the sales in May of 2020. Of course, we were in lock down for most of March and April 2020, so exceeding the 63 sales in May 2020 is pretty much a given. 170 sales ties May sales in 2017 but beats May every other year going back to 2007. If we look at year to date sales for 2021, sales numbers beat 2007 but not 2006. We are on track to see record breaking sales numbers in 2021.
In the last year 26.5% of sales have been cash sales. That is a typical number for our property sales reports. I suppose it is balancing out between the crazy low interest rates and the appeal of a cash offer in a competitive market.
The average sale price over the 12 months ending May 31, 2021 was $955,022 for a residential property. That includes single family homes, duplexes, townhomes and condos. Nearly 1/3 of the residential sales were for in excess of $1,000,000 with 8 over $5,000,000.
Is another real estate crash coming?
2006 & 2007 is when the real estate market was peaking before the crash that hit Summit County in mid to late 2008. Are we currently seeing the peak before the next crash? Let’s look at the data and see how things compare.
At the end of 2008 there were about 1600 properties on the market. Inventory had been building from the lows in 2006 & 2007. We currently have just 10% of that 2008 inventory and are hovering around 160 properties for sale in the entire county. This is a very strong seller’s market. Depending on the time of year, a more balanced market would have about 750+ properties for sale. We are at just a fraction of that.
Comparing 2006 vs 2008 average sales price, prices increased 36%. 2019 vs 2021 prices have only increased 25% so far. Because the average sales price is so much higher now, it is a larger dollar amount increase but a smaller percentage of the sale price.
Days on market
Even the time spent on the market does not compare. At the beginning of 2006, 51.8% of properties went under contract in 60 days or less. This year, 82.4% of properties go under contract in 60 days or less. Although, this year it definitely feels much quicker than that statistic relays.
Summing up the real estate market
As the property sales report shows, it is a very strong seller’s market but much different than the market we saw 2006-2008. Unless there is a crazy event that stops buyers in their tracks instantly, any slow down we see with be gradual. Sales will taper. Inventory will rise. That will cause the stabilization of pricing. It will be a process that will take some time. As May numbers show, we are still seeing strong sales activity and very low inventory. No sign of a change is apparent yet.
Tips for buyers
It is difficult right now. You have to act quickly and take disappointment well. Properties can sell for well above the list price with multiple offers. Buying above appraised value and without asking the seller to make any repairs can be the edge you need to get past the competition. Price isn’t the only factor sellers are looking at. It can take several attempts before you get an accepted offer. A back up offer can be a good place to be if the original buyer backs out of the purchase for any reason.
Tips for sellers
As difficult as the market is for buyers right now, it doesn’t mean it’s a piece of cake for the sellers. It can be an emotional roller coaster as you navigate multiple offers. You have to pick a winner and the rest will lose out on your home. Once you figure out what you want the most in a buyer, it is still stressful to wait and see if the buyer you picked is the right one. We do everything we can to make the process as easy for you as possible but things can and do happen that are beyond our control. If you are putting your home on the market, buckle up, it could be a wild ride.