Southwest Colorado Market Report for the 4th Quarter 2022
Throughout 2022, the real estate market has begun to normalize after hitting record-breaking highs in the first half of the year, which was driven by incredibly high buyer demand, and it felt much like the 2021 market. However, through the end of the year, typical seasonal trends emerged, and the market shifted as interest rates started to rise. As a result, prices will likely fall slightly further in the next few months. Nevertheless, market stabilization brings fantastic opportunities to buyers and sellers looking to reach their real estate goals. In the fourth quarter of 2022, 201 homes were sold, 42% fewer sales than in the fourth quarter of 2021 and 41% lower than in the third quarter of 2022. Sales fell across all Southwest Colorado micro markets covered by this report compared to the same period the year prior. Regular seasonal shifts in the market led La Plata County inventory to drop 23% compared to the third quarter. However, inventory levels were up by a very significant 43% from the fourth quarter of 2021. Home prices rose at an unsustainable pace during the pandemic, but rising mortgage rates, higher inventory levels, and lower affordability are now impacting the market. As a result, home sale prices will likely continue to pull back as we enter the spring, but the correction should halt during the summer as mortgage rates continue falling.
We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don't hesitate to contact your Legacy Properties West Sotheby's International Realty agent.