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Understanding a Housing Bubble

Is there going to be a housing bubble in Breckenridge?

A housing bubble is a temporary event, but it can last for years. Usually, it’s driven by something outside the norm such as manipulated demand, speculation, unusually high levels of investment, excess liquidity, deregulated real estate financing market, or extreme forms of mortgage-based derivative products—all of which can cause home prices to become unsustainable. It leads to an increase in demand versus supply.

If we look at who is buying the properties up here in the mountains none of these apply. We are not seeing a manipulated demand, or deregulated real estate financing for example. I cannot of course say how long this type of market will last but so far we are seeing no signs of stopping.
Covid of course started the ball rolling with people fleeing the cities but also I think Covid changed how Americans do business in many ways. The one that affects us the most is the fact that so many people can now work at home given the option and of course technology is making this possible as well.

First quarter 2022 stats for homes and condos

Here are some of the first quarter statistics for homes and condos in Breckenridge. Our phones are ringing off the hook still asking if we think the market will stay the same in 2022. The answer is YES!
If you look at the appreciation rate of 37% it is beyond what anybody would have thought. We are still seeing growth with no signs of slowing down. People believe this to be a bubble but it is not. I will explain more about that in my next blog.
  • Number of Sales: The number of home sales are down  26%.
  • Average Price Increase: The average sold price increase was +37%!
  • Inventory: Today there are only 59 single family homes for sale in all of Summit County. The average list price of the homes for sale is $4,944,975.
  • Percent of List to Sold Price: The average percent of the list to sold price is 100%.
  • Number of Sales: The number of condominium sales are down 26%.
  • Average Price Increase: The average sold price increase was +26%!
  • Inventory: Today there are only 43 condominiums for sale in all of Summit County. The average list price of the condos for sale is $1,176,495.
  • Percent of List to Sold Price: The average percent of the list to sold price is 103%.

Try Something New!

Downhill skiing in Breckenridge is a real thrill and a draw to our charming mountain town. But are you aware of the other compelling experiences to be had here?

Try sitting and relaxing slope side, nordic skiing, scenic road trips, jumping on a horse-drawn sleigh, live theater are just to name a few exciting options off the slopes and chair lifts. Read more about Breck activities here.

And when you are ready to talk about that new investment property call us! Roger and Teresa Moen are here to help with all things real estate and investment in Breckenridge. Be safe out there!