Market Insights: Why sales are steady in Summit County
This article is about what residential properties have sold in the past seven days and why properties are selling at a steady pace right now in Summit County. First let’s look at the numbers. In the past week 31 properties went under contract*:
1 – duplex
3 – townhomes
10 – condominiums
17 – Single family homes
It jumps right off the page, single family homes are selling. But why? First single family homes are the easiest to finance. Second buyers who in the past could only afford a condo can now afford a home.
Are 31 sales a week a steady pace we should be happy with? It depends on your perspective. If you believe a “normal market” is what we experienced in 2007/8 the answer is “no.” However if you believe the current economy is “the new normal,” than this is a very healthy pace of sale. Personally, I am pleased with the current market and the consistent level of sales. The wait for another real estate boom, with rapid price appreciation, could be a very long wait.
Sales are steady because buyers are finding, in their eyes, “good value” in the market right now. Prices have dropped significantly since the peak levels in late 2008. A family that two years ago was looking condos near town is now looking at single family homes. And, possibly even more importantly, it appears buyers, at least those I am working with, are buying second homes more because they are looking forward to years of use and enjoyment versus seeking profits.
Based on the data mentioned above, 145 Cottonwood Drive, Dillon illustrates the current typical sale. In has two bedrooms, two decks, a yard and a basement with plenty of additional space. On the market at $467,000 for many buyers this type of charming log home wins out hands-down over a condo.
Daniel Webster Johnson is a Broker Associate at Resort Brokers Real Estate. He can be reached at (970) 393-3300 and/or daniel@YourMountainBroker.com *Data obtained from the Summit Association of Realtors.
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