Southwest Colorado Market Update: September 2024 and Quarter 3

The real estate market in Southwest Colorado continues to shift under the pressure of rising mortgage rates. As we move into the final quarter of the year, data from September 2024 highlights moderate increases in inventory alongside longer days on market and rising home prices. While some sellers are cautiously re-entering the market, many are holding back, resulting in a tight but slowly growing supply of homes. Meanwhile, buyers face the challenge of higher mortgage rates impacting affordability, which is leading to slower overall sales activity. Despite these hurdles, homes are still selling—though the pace has slowed compared to the more competitive market seen in previous years.

In September, the average sale price across the region was $1,414,320, with 1,263 active listings and an average of 126 days on the market. A total of 264 homes were sold, showcasing steady activity even in the face of rising rates. When we compare these numbers with prior years, active listings have increased from 1,058 in 2023, though they remain significantly lower than the 2,414 active listings in 2014. This shift reflects a moderate rise in available inventory, even as sellers are still cautious about listing in a high-rate environment. Despite this, prices continue to rise, up from $1,179,406 last year and $761,162 in 2022.

The real estate market’s resilience can also be seen in how close homes are selling to their listing prices. The average percentage of sold price to list price across the region in 2024 was 96.3%, only slightly lower than 2023’s 96.6%. This indicates that despite rising mortgage rates and slower buyer activity, sellers are still achieving sales prices close to their asking prices. In 2021, sellers were getting even closer to their list prices, at an average of 98.6%, so there has been a small shift in favor of buyers, but overall, sellers are still holding firm in most areas.

La Plata County had an average sale price of $879,833, with 381 active listings and 104 days on the market. Archuleta County, another key market, saw an average price of $940,395, with homes sitting on the market for 107 days. Both counties show a relatively slow pace in terms of sales, with properties taking longer to move as buyers hesitate due to high mortgage rates.

The luxury market in San Miguel County reflects this trend as well, where the average sale price reached $5,666,667, but only three homes sold after being on the market for an average of 225 days. In contrast, Montezuma and Montrose counties present more affordable options. Montezuma County had an average sale price of $411,120 with homes staying on the market for 111 days. Montrose, with a slightly higher average sale price of $502,455, saw 61 homes sold after 101 days on the market.

When we look at Q3 as a whole, Southwest Colorado saw 784 homes sold, with 3,829 active listings. Average sale prices increased to $1,130,873, up from $1,029,000 in 2023. However, homes are sitting longer, with the average days on market rising to 113 from 91 last year.

Durango continues to show strong pricing with an average sale price of $910,663. The city had 84 homes sold in September, and homes are typically on the market for 110 days. Pagosa Springs also saw steady growth, with an average sale price of $938,070, and homes on the market for 104 days. Meanwhile, Bayfield's market has seen solid price appreciation, with an average sale price of $661,674 and homes selling after about 81 days on the market.

As we head into the colder months, buyers in Southwest Colorado may still face competition, but with the moderate increase in inventory and homes staying on the market longer, they might have more opportunities to negotiate favorable terms. Sellers, on the other hand, will need to remain mindful of pricing competitively or making strategic improvements to make their properties stand out in a market where higher mortgage rates are pushing some buyers to the sidelines. The market presents both opportunities and challenges, depending on your position as a buyer or seller. While the region continues to experience rising prices, the longer days on the market reflect a more cautious and selective approach from buyers, heavily influenced by current mortgage rate conditions.

Stay tuned for more updates as we continue tracking the market into the final quarter of the year!

For further details on market trends and to explore opportunities in Southwest Colorado, feel free to contact me. Let’s navigate these changing times together and find the best deals tailored to your needs.

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