The Summit County actual property market set a record in 2020 for breaking the $2 billion mark in sales. A shrinking housing stock coupled with unprecedented demand up to now 12 months has left Summit County with hovering costs.
Based on Land Title Assure Co. knowledge, the typical value of a single-family residence was $1.39 million in 2020, up greater than $130,000 from the 2019 common of $1.26 million.
Jack Wolfe, dealer at LIV Sotheby’s Worldwide Realty in Breckenridge, mentioned the ten% improve within the common single-family residence value between 2019 and 2020 is an all-time document. He added that there was a forty five% improve in properties bought over $1 million in 2020 in addition to a 97% improve in properties bought over $2 million.
“The costs are undoubtedly transferring up; there’s no query,” Wolfe mentioned. “And the momentum of 2020 is carried over to 2021.”
Demand for Summit County properties is clearly exceeding provides, Wolfe mentioned. Aniela Wasmanski, dealer affiliate at LIV Sotheby’s, added that low rates of interest are also fueling a aggressive homebuying market. Wolfe mentioned a lot of his purchasers are interested in properties within the space as a result of they’re working remotely and residing in Summit County is interesting.
Wolfe mentioned a few of the shift available in the market is right here to remain, giving the instance of a shopper who was advised she possible would by no means work in individual once more, so her household is trying to completely relocate to Summit County. Wasmanski mentioned the kind of clientele buying million-dollar properties within the space usually are able of their firm the place they’ll make the choice to completely work remotely.
Wasmanski mentioned sellers are motivated to place their properties in the marketplace as a result of there are lots of patrons trying to make a purchase order and a excessive chance that the house will promote shortly for a excessive value.
“We’re teaching our purchasers to be able to go, have their observe footwear on,” Wolfe mentioned. “We’re simply in a scenario the place in the event you hesitate, chances are you’ll not get the house. So some examples is perhaps, if a shopper can purchase with money versus with a mortgage, that places them in a greater place with the vendor.”
Purchasers are additionally suggested to get prequalification letters if they can’t pay in money, Wolfe mentioned. Wasmanski mentioned she has been FaceTiming with purchasers to indicate them a house.
“It’s most likely the quickest patrons have ever needed to decide on buying,” Wasmanski mentioned. “… The folks which can be positioned and able to go are seeing success. On this market, we’re seeing folks act identical day as much as the $3.5 million properties.”
Leah Canfield, dealer affiliate at Coldwell Banker Mountain Properties, mentioned that due to the excessive demand in Summit County proper now, patrons usually tend to make aggressive gives and sellers usually tend to ask the next value. Competitors is thru the roof, and Canfield mentioned she is seeing as many as 10 gives on a single property. That compares to the previous decade, when Canfield mentioned Summit County simply wasn’t the kind of place the place it was frequent for properties to get a number of gives. She added that properties are going underneath contract within the first 24 to 48 hours, and if there’s a money purchaser, properties can shut in as few as 10 days.
“We’re seeing properties going for $100,000-plus over the asking value. We’re seeing, sadly, … lots of mortgage patrons simply pushed to the sidelines as a result of there’s lots of money patrons that may outcompete them,” Canfield mentioned. “As a dealer, we’re beginning to see stuff that we haven’t seen in ages, that are patrons who’re actually not simply competing on value however phrases. Individuals are waiving inspections. Individuals are waiving due diligence. They’re doing no matter it takes to make their provide essentially the most aggressive.”
Canfield famous that Summit County tends to lag behind Entrance Vary developments. She mentioned that 12 to 18 months in the past, the Denver space was beginning to see a extremely aggressive actual property market, just like what Summit County is experiencing now. Whereas there’s an uptick in each in-state and out-of-state patrons, Canfield mentioned the pool of worldwide patrons additionally has elevated, which is one other indicator of rising costs. Sellers who had been contemplating promoting their residence previous to the hovering market are actually keen to leap in.
“We’re getting lots of the identical message from sellers which is that, ‘Hey, we had been fascinated by promoting for a bit’ or ‘We’ve been needing to make this transfer’ or ‘We’ve been needing to make this transformation, and the market is simply so robust proper now that we simply really feel like now could be the precise time,’” Canfield mentioned.
Alongside a extremely aggressive market-rate housing enviornment, Summit Mixed Housing Authority Government Director Amy Priegel mentioned the county has seen unprecedented demand for deed-restricted housing. In the newest lottery for the subsequent spherical of properties within the Silverthorne Smith Ranch neighborhood, she mentioned 3.5 functions had been obtained for every accessible unit, the best curiosity in a workforce housing lottery in years.
“There actually does appear to be a really robust correlation between what’s occurring with the market stock and pricing and the elevated demand for deed-restricted properties,” Priegel mentioned.
Priegel mentioned the Housing Authority additionally has heard from lots of people who dwell and work in Summit County that they make an excessive amount of cash to qualify for current deed-restricted properties however are getting outbid on market-rate properties by traders and money patrons. Plus, Priegel mentioned there’s an enormous value hole between the best priced deed-restricted property and market-rate properties.
Along with a troublesome housing market, she added that persons are additionally having a tough time discovering residential models for lease.
“Leases are nonetheless robust for folk too,” Priegel mentioned. “We’re nonetheless getting lots of calls, notably now, (saying), ‘My rental is developing in April, and my landlord isn’t going to resume my lease for a wide range of causes,’ a few of that are associated to landlords desirous to promote whereas the market is scorching.”
The excellent news, Priegel mentioned, is that rental models are the main focus of developments within the works. For instance, Breckenridge’s Alta Verde workforce housing development will feature 80 rental units.