We are excited to release our latest Market Report, analyzing the 2nd Quarter performance of 2022 compared to the same time frame during 2021. The following is a short overview of the current market in Southwest Colorado, highlighting a few notable themes.
As Durango and Southwest Colorado approach summer, the housing market will be the story of two halves, the first of the year with unprecedented appreciation and the second half of the year with a return to normalization. The effects of higher interest rates are not visible yet regarding the 2nd Quarter report and will most likely not be seen until after the summer and during the 3rd Quarter of 2022. However, there have already been signs of a shift due to price reductions and longer days on the market. A change in the market will hopefully translate to more inventory, lower or flat prices, and longer days in the MLS, resulting in a balanced buyer and seller market. Because of the build-up of buyers and low inventory, buyer demand continued to outpace supply for the 2nd Quarter in Southwest Colorado.
La Plata County's residential market saw19%fewer homes closed than the previous year during the 2nd Quarter of 2021. As a result, the median sales price for residential listings in La Plata County in the 2nd Quarter, based on a rolling three months data from January 2021 to June 2022, was $625,000, up by 15%. The continued effects of low inventory are also indicated in the average close-price-to-list-price ratio of 101.1% for La Plata County.
The luxury real estate market in Southwest Colorado, defined as properties priced at or over $1 million, has continued to increase in buying activity as prices rise and inventory remains low. There was a 35% increase in the number of properties sold over $1 million in La Plata County compared to the 2nd Quarter of 2021—with an average median sales price of $1,357,500. As appreciation has increased in Southwest Colorado, so has the inventory for homes priced over $1 million in La Plata County, showing an increase of 19.2% based on a rolling three months data from Jan 2021 to June 2022.
Colorado's communities offer plenty of opportunities for buyers and sellers to make prosperous moves in the housing market. Whether you're interested in buying or selling a home, understanding the current market condition and working with an experienced local broker are crucial components in the current market conditions and can help guide your decisions and real estate strategy.