July Market report 2022
Happy high country summer days where the temps hover around 80 degrees maximum by late afternoon. We feel pretty blessed when we need a light jacket in the early morning hours vs the urban heat we know much of the country is experiencing. The wildflowers are bursting open, the scenery is super green thanks to semi frequent evening showers and live music is often heard in the distance.
While we’re literally heating up under the midday sun, the market is feeling a bit cooler right now. The inflation fighting forces of higher interest rates are having some folks pause, making things a little less predictable than they were even just 6 months ago. Purchasing power for buyers needing financing has decreased. Days on market is increasing (in many, but not all sectors), multiple offers are decreasing in number (maybe 2 vs 10) and there are more units for sale than the recent past.
This shift cannot be categorized as a slump or slow down as it’s still too early to see an extended pattern. There is still a lot of pent up demand in our recreational paradise. To put things in perspective, we currently have 421 properties listed in Grand County for sale. In June 2021, there were 512 properties on the market. Let’s dial this back to June 2014 where we had 1,616 properties on the market- and not nearly the new construction either!
While we have experienced some price decreases as some properties followed the aggressive pricing trajectory and had to reel it in a bit. This is happening more often where there are multiple units for sale in a complex versus a stand alone home where no others are listed, or with a property in great condition with a smart floorplan; something unique in location or nature.
Speaking of new construction, the sounds of “beep, beep, beep” is quite prevalent throughout the area as infrastructure is expanding and buildings are rising out of the ground. The price of lumber is down from this time 6 months ago but still much higher than 24 months ago and costs of building materials are still in orbit with the (sky) rockets. We’re not seeing any “steals” or “deals” but the song is no longer the same one we’ve been hearing for the past 30 months and thats ok.
Like death and taxes, market changes are inevitable. Thanks for letting us be your local real estate advisor, expert and confidant! We will continue to keep you abreast of activity and we look forward to seeing you in the park, on the trail, out to lunch (at a restaurant) or on the water. There are so many fun summertime activities ahead!