A Look Back at 2021 and Projections for 2022
While our mountain communities are finding solutions to the housing shortage and staffing issues, we tried to adapt to the new normal of 2021. You can read my recent blog post about what Breckenridge is doing to curb the effects of these issues.
I want to start by saying thank you to all of my wonderful clients who let me take part in their move, either selling or buying a new home in beautiful Summit County, Colorado! I moved to RE/MAX Properties of the Summit this year and rebranded my social media accounts. This year, I’m looking forward to helping more of you find your dream mountain home or sell your home as you move on to bigger and better things. To understand what 2022 might look like, we need to take a look back at the real estate market last year. This post is going to look at trends around Summit County, Colorado, and Breckenridge, in particular, as well as look forward to national and local projections of what the real estate market will look like in 2022!
Looking specifically at Breckenridge, the average sold price for residential real estate increased by 28% over the last year. The average sold price for single-family homes was $2,168,868, a 30% increase from the prior year. To compare, Frisco saw a 26% increase (lowest) and Dillon a 34% increase (highest) in the average residential sale price. Total residential properties sold in Breckenridge increased 2% to 797, averaging $1,513,787 as the final sale price. The percent of list to sold price was 99.8% for residential; Single-family homes in Breckenridge averaged 38 days on the market, only lower than Keystone at 43 days. 322 condominiums were sold during 2021 in Breckenridge averaging a final sale price of $798,479, a 23% increase over the previous year. Averaging 27 days on the market, condominiums in Breckenridge consistently sold for the asking price.
Looking at Summit County as a whole, there has been a steady increase of average sold home prices since 2013 by a minimum of 4% each year, topping out at $1,136,426 for residential properties, in Summit County. Prices have more than doubled in the last decade, a 125% increase in residential property price. The average sold price increased by 25% in Summit County from 2020 to 2021; we’ve never seen an increase this steep in Summit County. The highest increase before this current boom was between 2016 to 2017 when the county saw a 17% increase in average home price. The average number of days a single-family home stayed on the market was 33 days with Keystone seeing the fastest sales at an average of 11 days on the market. The percent of list-to-sale price averages in Summit County for residential properties was 101% with Silverthorne and Dillon having the highest rates; sellers consistently received more than the asking price for their home, often with multiple bids.
Projections for this year overwhelmingly predict that home prices will at least normalize this year. So while there may be an increase in your home’s value, it will not be as drastic of a rise as we’ve seen since 2020. The average rise of the home price in Summit County, as mentioned earlier as 25%, was not far off from the national average of nearly 20%; local trends will likely mirror national trends as they have over the past year. According to the National Association of Realtors Chief Economist, Lawrence Yun, “the housing sector’s success will continue, but I don’t expect next year’s performance to exceed this year’s.” From predictions I’ve seen thus far, interest rates on the 30-year fixed-rate mortgage are expected to rise, but many are suggesting an adjustment will be less than 1%. Continued tough competition for buyers will perpetuate the “seller’s market” that we have seen for nearly two years. Nationally, sellers averaged five offers on a home sold in 2021, which was up from three in 2020. Relocation to more affordable areas is expected to continue with many companies continuing to offer remote work to their employees. We have seen a rise in remote workers wanting to move to our mountain communities for access to outdoor activities; this is expected to continue. Inventory is not expected to grow which will continue to the competitive market we’ve experienced and lead to the continued (yet slower) rise in home prices mentioned earlier. The market saw a slight dip in the number of second-home purchases from 2020 to 2021 after the rush to leave cities for more space. For those looking to buy a second home, it is expected they may be paying more or choosing a home further from the original destination. There is expected to be a rise in interest in condos as they are seen as the affordable option in communities like our own. However, “Big is back.” We used to have bigger homes before the Great Recession, and then people started looking toward smaller homes and building smaller homes. So big is back with the open floor plans designed for multigenerational gatherings, a compound that their extended family can come to for vacation. Buyers will consistently look for larger square footage homes with greater proximity to local amenities.
My hope is that this information has been helpful in understanding the state of the current real estate market. If you’re looking for an agent to represent you in selling or buying your mountain home in Summit County, Colorado, my information is below. With over 20 years of experience, you can trust that I know the mountain real estate market and will help you sell or buy with confidence. If you have any questions, please reach out!
Call | 970.389.3714
Email | firstname.lastname@example.org
*Percentage change is from 2020 to 2021 unless otherwise noted.