colorado real estate market has surpassed 2019's performance
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By Amanda Molitor | October 23, 2020
The real estate market has seen many ups and downs throughout this year. Restrictions due to social distancing made a major impact on how people buy and sell homes, resulting in a decrease in activity during the spring. However, that dip did not last long. LIV Sotheby’s International Realty (LIV SIR) is pleased to report that the housing market has not only bounced back, but it has exceeded last year’s performance.
Each quarter, LIV SIR reports on Colorado’s real estate activity in 10 key markets throughout the state, including Denver Metro, West Metro, South Metro, the Foothills, Colorado Springs, Summit County, the Vail Valley, Boulder, Crested Butte, and Telluride. By looking at key performance indicators such as the number of listings sold, average price, and the days on market, consumers can gain a better understanding of the overall health of the market and therefore make more informed financial and real estate decisions.
When comparing the Q3 performance of 2020 to that of 2019, all 10 of the regions that LIV SIR serves experienced positive increases in market activity.
Denver Metro, which was recently named the second-best city to live in the country by U.S. News and World Report, saw a 2.4% increase in the number of homes sold through Q3. The Boulder area also had an increase in homes sold, rising by 1.9%. But with more buyers looking to make their dreams of mountain living a reality, the state’s resort markets saw the most dramatic increases throughout the year.
The Vail Valley, one of the most popular destinations for those looking for world-class skiing and the resort lifestyle, saw a 14.7% increase in the number of single-family homes sold through Q3 compared to the same time frame in 2019. Other resort destinations such as Summit County and Crested Butte experienced 7.9% and 14% increases in listings sold respectively. Southwest Colorado’s historic mining town of Telluride had the most notable rise in property sales of all. Here, 56.3% more properties were sold from January through September of 2020 compared to the same time frame last year. These increases in home sales help illustrate buyers’ desire to escape the city life and find their sanctuary in mountain towns.
Due to the surge in demand for Colorado homes, average prices for properties have increased in most regions throughout the state. In Colorado Springs, one of the most popular places to buy and sell homes in the nation, average home prices climbed 11.5%, bringing the average price for homes in the area to $403,972. The South Metro communities have also seen an increase in average price, increasing by 4.0%. In Boulder County, another highly sought-after community known for its outdoor recreational activities and health-focused lifestyle, home prices rose by 4.6%.
Not only has the demand for Colorado’s real estate increased prices, but it has also contributed to the decrease in average days on market for homes within several communities. In the Foothill and West Metro communities, average days on market decreased by 8%. Homes in Denver Metro are also selling more quickly, dropping from 29 days on market to just 26 days, a 10.3% decrease.
Colorado’s unique lifestyle, gorgeous natural spaces, and stunning homes have made it a hotspot to buy and sell real estate over the last year. As consumers continue to search for homes with more access to the outdoors and socially distant activities, Colorado’s housing market will continue to pick up momentum and produce ideal conditions for consumers to reach their real estate and lifestyle goals.