This year is on track for record real estate sales in Grand County, due to high demand for mountain properties and limited availability.
Data from the Grand County Board of Realtors shows that October was the 115th month that median selling prices rose from the same month a year earlier, while the available inventory has steadily declined over the same period.
In October, the year-over-year change in the median selling price of all properties rose 11.8% while the number of active listings fell 14.4%, according to the Realtors board of directors.
“Due to the lack of inventory and the need for housing here, when properties come on the market they go so fast,” said Lindsey Morrow, agent at Keller Williams Top of the Rockies. “It has been a very strong year for real estate in general.”
The Land Title Guarantee Company’s September report shows that average selling prices for single and multi-family properties are at their highest rates, with single-family homes averaging $ 876,425 and multi-family properties averaging $ 510,367.
So far this year, real estate sales have totaled more than $ 861 million, an increase of 41.7% over the same period last year, according to the Land Title Guarantee Company.
Last year saw record sales with over $ 994 million in transactions.
The high demand for properties in Grand County can be attributed to a number of factors, including the increased number of people working from home, low interest rates, rising selling prices in the surrounding mountain communities and settlements. recreational opportunities.
“Grand County is only an hour and a half from Denver… we have the infrastructure and the internet for people to (work from home), and I think people are realizing that Grand County has a good work-life balance, ”Morrow said.
The majority of buyers come from Front Range, which has accounted for 61% of sales so far this year, according to data compiled by Land Title Guarantee Company.
All the demand means active registrations go fast.
Properties sold in October saw a 52% decrease in days on the market from October 2020. The average townhouse or condo sold after just 48 days and single-family homes sold 72 days, according to the Grand County Board of Realtors.
Morrow said demand slowed towards the end of the year, although it remains relatively high compared to previous years. Demand is highest for properties priced under $ 600,000.
“It’s definitely calmed down a bit from the summer when there had been several offers and properties that spent two or three days on the market,” she said. “Although as soon as you walk into these properties in the $ 400,000 or $ 500,000 which is desirable, they go out within five or six days.”
According to data from the Grand County Board of Realtors, the majority of properties sold so far this year range from $ 600,000 to $ 999,999.
Inventory under $ 600,000 in Grand County is increasingly scarce with only 13 single family homes currently on the market.
In addition to incredible demand and low inventories, external factors such as rising construction costs, labor shortages and supply chain issues also contributed to the extreme selling prices.
Single-family homes ranging from $ 1 million to $ 1,999,999 in 2021 are up 52 to 55% from last year, according to GCBOR data.
However, there are still opportunities for buyers.
With rental rates rising, Morrow urged interested buyers to contact a lender as interest rates remain favorable
“If people are willing to spend $ 3,000 a month on rent, it could potentially earn them a $ 600,000 or $ 700,000 house, for which there is an inventory,” she said.
Morrow said the market is holding up, so unlike the 2008 market there is unlikely to be a crash and current trends are likely to continue until more inventory becomes available.
“Property appraisal values are always equal to or greater than the contract price,” she added. “The most important thing is that we don’t have an inventory of people who move into the community. “
According to Steve Jensen of the Grand County Builders Association, the number of building permits indicates that Grand County is picking up the pace of construction, with 2021 seeing a record number of permits for single-family homes.
Not counting construction in Fraser, Granby or Winter Park, Grand County has issued 237 permits for single family homes so far this year compared to the same period in 2020 and 108 in 2019. Of the permits issued this year, 89 are reconstructions after a fire. .