June of Southwest Colorado Market Update by Rachel Sadler

Southwest Colorado June 2024 Market Snapshot

In June, the average sales price across all seven counties combined was approximately $1,498,764. Keeping with historical trends, San Miguel County tops the chart with an average sales price of $6,599,750, driven by ultra-luxury estates in and around Telluride. Meanwhile, Montezuma County offers more affordable options with an average sales price of $374,037, still packed with potential for appreciation.

Historical Data and Trends

Looking at the historical data, significant changes are evident over the years. Comparing June 2014, 2022, 2023, and 2024, there’s a clear upward trend in the average sales price, which hit $1.499M in 2024. Active listings have fluctuated but are still not at the stable levels we saw in 2014. However, 2024 is showing some recovery from the scarcity of 2022 and 2023.

The number of sold listings and the average days on the market also provide insights into the shifting dynamics over the past decade. Inventory is rising, but sales have declined by 3% from Q2 2023, 31% from 2022, and 6% compared to 2014. Homes are taking longer to sell, with an increase of 10% in average days on market from 2023, 49% from 2022, though still 14% lower than 2014. It’s taking 46% more showings to produce a contract compared to 2023, and 20% more than in 2022.

Market Implications

The rising average sales price indicates strong demand and a healthy appreciation of property values throughout Southwest Colorado. This trend benefits current homeowners and investors as their properties gain value over time. However, new buyers face higher entry costs, putting a strain on the market overall. This strain leads to more selective buyers, which is why we’re seeing more inventory sitting with fewer sales.

Despite the cooling effect of high interest rates, demand remains. Sellers who understand the current value of their homes and price them accordingly can still generate interest and potentially create multiple offer situations. Inventory hasn’t rebounded to pre-pandemic levels, so homes priced right continue to attract competitive bids.

The key takeaway for buyers is to act swiftly and be prepared. Sellers should remain realistic about pricing to capitalize on the market’s competitive edge. This dynamic underscores the importance of making timely, informed decisions in today’s real estate landscape.

Durango, Pagosa Springs, & Bayfield Market Update: June 2024

Specific areas like Durango, Pagosa Springs, and Bayfield offer further insights. In Durango, the average sale price in June 2024 was $875,198, with 49 properties sold and an average of 68 days on the market. Compared to previous years, Durango has seen a steady increase in prices and a relatively stable number of active listings, indicating strong demand and limited supply. This trend means that Durango continues to be a highly desirable location, with buyers willing to pay a premium for properties, resulting in consistent price growth. The stable number of active listings suggests a balanced market where supply meets demand, but not an oversupply, which helps maintain price stability and appreciation.

Pagosa Springs follows a similar trend, with an average sale price of $840,874 and 31 properties sold in June 2024, showing a significant increase in value over the years. The average days on the market is 84, slightly longer than Durango, which could indicate that while demand is strong, buyers are taking a bit more time to finalize their purchases. This trend highlights Pagosa Springs as an attractive location with growing interest, likely driven by its natural amenities and lifestyle appeal. The rising prices and sustained sales volume indicate a robust market where properties are appreciating in value, making it a good area for investment.

Bayfield, with an average sale price of $815,206 and 17 properties sold, highlights a notable rise in prices, reflecting growing interest and investment in this area. The average days on market is 123, significantly higher than Durango and Pagosa Springs, suggesting that while properties are appreciating, the market might be more balanced or even slightly favoring buyers. This longer selling period can be advantageous for buyers who have more time to negotiate and make decisions, but sellers should be prepared for a potentially longer time to close deals. The increasing prices in Bayfield demonstrate its rising popularity and potential as a growing market, making it an attractive option for both buyers looking for more affordable alternatives to Durango and investors seeking emerging markets.

For sellers, the rising average sales prices and consistent market activity are positive indicators, though the longer days on market suggest the need for competitive pricing and strategic marketing. For buyers, the varied average sales prices across counties provide opportunities to find properties that fit different budgets and preferences. The historical trends emphasize the importance of acting swiftly in a market with rising prices and fluctuating inventory. Overall, Southwest Colorado's real estate market shows healthy growth and dynamic opportunities, making it essential for both buyers and sellers to stay informed and work with knowledgeable agents to navigate this evolving landscape effectively.

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Should you have any questions or wish to explore how these insights might shape your real estate ventures, don't hesitate to get in touch. I'm here to guide you through the complexities of the market, ensuring your real estate journey is both informed and aligned with your dreams and goals.

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