The number of homes sold in Summit County is continuing to decrease each month but home prices are remaining at a record high, according to February real estate data.

The findings come as brokers have been predicting a slight shift in the housing market, eyeing a tilt toward buyers who they say may be more empowered to negotiate home prices amid a post-COVID market boom. But sellers are still nearly reaping their full asking price.

There were 19.3% fewer sales than a year prior, but that number is about 18% better than we did last month. The median sales price is up 20.4% over the same time last year. Another federal reserve rate hike could flatten our market again, but as for now, even with this upward trend, sellers are receiving about 97% of their list price.”The average home transaction in February for both single- and multi-family housing was $1,484,891,” according to our highest average Recently released from Land Title.

Many people are holding onto their homes as they have lower interest rates and want to keep those where they are. There seems to be indicators of the market going back to normal even with the interest rates increasing. Part of this is the time of year and also people’s fears. If the interest rates hit up to 6% that is still pretty cheap money. We just all got spoiled with those super low interest rates. So demand is there to purchase, and there are still buyers out there just less to choose from. This puts the market at a more equal playing field, so to speak, as it has been a buyers market for so long since COVID-19.

According to Zillow, which is a nationwide company servicing thousands of zip codes, and is certainly computer generated, but it is useful for discussion. The best way to get a more in depth accounting of the market you really need to talk to a local Breckenridge realtor which would be Roger and Teresa Moen of course. We have seen a sluggish market in the last quarter of 2022. The true test will be to see what happens in this first quarter of 2023.

A couple of things are showing themselves to be promising. One is our sales are almost where they were last year at this time. I have also been seeing interest rates going down again. I have even seen some no-doc loans which I haven’t seen in years. So the chart below is projecting 2.5% value increase which is low for Breckenridge. I will keep you posted as to what is happening in the near future. If you have a particular price range of Breckenridge mountain homes or another area of Summit County let me know and I can do a more in-depth search for you. Roger and I are your friendly, local guides to all things real estate!

Here is a monthly local update based upon homes you viewed in zip code 80424.

I wanted to share some charts & graphs to help you understand the current Breckenridge market more fully.

Here’s a long-term chart showing all active residential listings (homes, condos, townhomes, duplexes, vacant land) – no commercial, no timeshare.

Note the rapid up/down seasonal fluctuation in the number of active listings – always more listings on the market in the summer, fewer in the winter.

The more important thing to notice: the better the overall state of the US economy, the fewer the listings there are. During the years 2004 – 2007, the number of listings went down as the general US economy was thriving. The number of active listings bottomed out in 2007 with only ~350 listings. Then the Great Recession hit. People still wanted to sell, but very few sales occurred, so the inventory skyrocketed to over 1,200 listings in Summer 2009 and again in Summer 2010.

As we recovered from the Great Recession, the inventory decreased pretty steadily, from 2011 through 2020, and then by late 2020 the “COVID FEVER BUYING FRENZY” was in full swing, and the inventory plummeted to just ~60 listings, in Spring 2021 and again in Spring 2022.

Zooming in on the last few years…

This chart is a close-up of just the past few years. Note that inventory plummeted in late 2020 and early 2021 as COVID-fueled buying fever prevailed. Then, starting in Summer 2022, the market cooled a bit and inventory rose.. but it still peaked at around 260 listings in Fall 2022 … and now it’s dropping pretty fast again.

As of 12/15/22, there were only 165 listings on the market. That is lower than anytime prior to the onset of COVID. It’s still a seller’s market, as long as there is so little inventory. Properties are currently selling faster than new ones are coming on the market, so the number of listings is dropping.

Questions? Need answers? Roger and I are your number ONE professional choice for our knowledge, expertise and advise. We look forward to assisting you. Happy Holidays.

First, this year I’ve had more people paying cash for their second homes here in Breckenridge and surrounding areas. Remember, Breckenridge is a resort market, so interest rates are not as much of a concern here, versus areas where people are struggling to finance their first home purchase. But, the way that it is affecting our investors in Breckenridge, is that they are now figuring “cash is king” and in some cases they are right. A cash transaction can close quickly, around 3 weeks, while a transaction with a loan will typically take 6-8 weeks. A quick closing is usually appealing to a seller.

Happy Thanksgiving!

Short Term Rental Caps and Zoning

A short-term rental property is defined as “a residential dwelling unit, or any room therein, available for lease for a term of less than thirty (30) consecutive days.”

• A valid short-term rental license is required for each short-term rental property.
• Individual homeowner associations may have requirements, restrictions and covenants related to short-term rentals.
• The license is required regardless of how the properties are marketed (through a management company, on-line through websites such as VRBO and Airbnb, newspaper ads, word of mouth, etc.).
• The license number must be displayed in all advertisings for the property.
• Short-term rental licenses are non-transferable/non-refundable in event of property sale.

Is the real estate market in Breckenridge feeling the recession and deflated prices? I have gotten many calls about the Breckenridge market lately. I know I say this a lot but we are not in a regular real estate market. Breckenridge is a ‘resort market’ so we do not have the struggles that other markets do. A few examples are, trying to qualify for a loan, higher appreciation rates, finding and securing primary housing. The higher inflation that we all feel is having less of an impact on us. Investors are seeing opportunities and also many people are tired of the ever-fluctuating stock market. If that is the case for you let’s talk about what is the best way for you to proceed. You cannot enjoy your stocks but you can enjoy your mountain cabin with the family and avoid I-70 traffic!!

Great news! It has been made official! Finally. The ordinance has passed! The town has over 350 licenses available in Zone 1 for short term rentals. We are anticipating licenses to remain available for a while within Zone 1.  Zone 1 is ‘in town’ properties. It took awhile but they have finalized this zoning issue. So if you are purchasing in town you can see how many permits are available by going to the town website. This is great news for sellers as the properties for buyers now have more appeal and will sell faster as the buyers have a chance to buy a property in Breckenridge and make some income to help offset their mortgage. So if you were concerned and this issue was holding you back from making a purchase in Breckenridge for your mountain getaway or ski in ski out investment property you are invited to come back and talk to us and we will help you get started. There are other zones outside of town and of course there are those exempt from the permits that we have discussed such as the resorts with front desk etc. So, isn’t it nice to get good news! We are are so happy!