The Group Real Estate Insider - October 2022

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How's the Market?

The Yampa Valley was blessed with a wet spring and summer, which has resulted
in a brilliant palate of golds, oranges, and reds in our hills. With recent dry
weather, it’s the perfect time to get out on those trails and appreciate Mother
Nature’s autumn bounty.

Routt County currently has 155 active residential listings; that’s down from this
time last month (185) and down from this time last year (184). The number of
current pending listings (52) is also down from this time last month (77) and
also down from this time last year (102). Closed listings county-wide have also
diminished with 75 last month compared to 120 in September 2021. The median
sale price has also fallen from a high of nearly $1.6M in May 2020 to about $1.2M
last month.

At the same time, the median days before going under contract has gone up,
from a low of five days in June 2022 to 19 days last month (median days in the
MLS in September 2021 was seven). Over the past year, the ratio of asking price
to closed price was 100.2% (meaning that homes sold, on average, slightly above
asking price). Last month, the ratio was 97.4%, meaning that homes sold, on
average, slightly below asking price.

Indeed, if you’ve been watching the news, you might think that the sky is falling
(from a real estate perspective). On the contrary, things are just leveling out.
This is the important distinction: home appreciation is decelerating but home
values continue to appreciate. As indicated above, the median home sale price
was about $1.2M; in September 2019, it was about $660K, a near doubling of
appreciation in three years.

So, no, the sky is not falling. The market is returning to a more balanced state.
However, we are not quite there yet (six months’ supply is a balanced market;
we’re sitting at three months’ supply). Whether you’re considering buying or
selling, one of our experienced agents is here to help you with any and all of
your questions. Give us a call to find out how.