Markets Calm to Pre-Covid Levels

August is a great time to check the “temperature” of the local real estate market. National economic conditions have cooled the overheated market, but how much? 

In Summit County, real estate sales for the past two summers were scorching hot due to low inventory, high buyer demand, and ongoing shifts in the workplace and migration of permanent residence. What we are now seeing is a plateau of price appreciation but not a downturn in average sales price.

Currently, there are 557 active listings in Summit County with 177 of those under contract (not including 380 new construction properties awaiting completion). The active listing inventory remains well below average in comparison to the past 5 years.

For the thousands of buyers still in the market, the good news is that real estate pricing is returning to pre-Covid levels. There is more inventory, more choices, and fewer multiple-offer scenarios. Many properties that were listed at the end of spring or early summer and priced aggressively have now seen price improvements (lowered listing prices).  

Several factors are attributed to this real estate cool down including inflation and interest rates as well as new short-term rental ordinances, primarily in Breckenridge and unincorporated Summit County. The current moratorium on licenses in unincorporated Summit County neighborhood zones is set to expire at the end of February 2023. It is expected that there will be refinement in current regulations and possibly an uptick in sales once the moratorium expires. The Town of Breckenridge is also planning to implement a zoning variation allowing complexes within Zone 1 (Four O’clock Road, Ski Hill Road, Park Avenue, Columbine) to obtain licenses. This is set to take place mid-August.

It is important to note that this plateau does equate to a downturn in average sales price. In fact, Summit County’s average sale price for all residential property types is up almost 20% over 2021.

Breckenridge has always been a long-term hold market, meaning that most buyers purchase properties with the intent to hold on to them for at least 5 years. Historically, our market does not experience the extreme highs and lows of primary residence markets, therefore we do not expect our market to lose ground in terms of appreciation.

Breckenridge Associates Real Estate continues to be the leading office in the Breckenridge market in terms of number of properties sold, listed and dollar volume sales. Talk to a Breckenridge Associates agent who can elaborate on the buying and selling particulars of our unique and ever-changing market.