This year is on track to see record real estate sales in Grand County, driven by strong demand for mountain properties and limited availability.
Data from the Grand County Board of Realtors shows October was the 115th month with median sales prices up from the same month a year earlier, while available inventory has steadily dropped over this same period.
In October, the year-over-year change in the median sale price of all properties rose 11.8%, while the number of active listings fell 14.4%, according to the Council of Estate Agents.
“Because of the lack of inventory and the need for housing here, when properties come on the market, they go so fast,” said Lindsey Morrow, agent at Keller Williams Top of the Rockies. “It’s been a very good year for real estate in general.”
The Land Title Guarantee Company’s September report shows that average sales prices for single-family and multi-family properties are at their highest rates, with single-family homes averaging $876,425 and multi-family properties averaging $510,367 .
So far this year, real estate sales have totaled more than $861 million, an increase of 41.7% over the same period last year, according to the Land Title Guarantee Company.
Last year saw record sales with over $994 million in transactions.
The high demand for real estate in Grand County can be attributed to a number of factors, including more people working from home, low interest rates, rising selling prices in mountain communities surroundings and recreational opportunities.
“Grand County is only an hour and a half from Denver…we have the infrastructure and the internet for people to (work from home), and I think people are realizing that Grand County has a great balance work-life,” Morrow said.
The majority of buyers come from Front Range, which has accounted for 61% of sales so far this year, according to data compiled by Land Title Guarantee Company.
All the demand means active listings are going fast.
Properties sold in October saw a 52% decrease in days on market compared to October 2020. The average townhouse or condo sold after just 48 days and single-family homes sold at 72 days, according to the Grand County Board of Realtors.
Morrow said demand slowed towards the end of the year, although it remains relatively high when sustained compared to previous years. Demand is highest for properties priced below $600,000.
“It’s definitely a bit calmer compared to the summer when there were multiple offers and properties spent two or three days on the market,” she said. “Although as soon as you get into those properties in the $400,000 or $500,000 range, which is desirable, those disappear within five or six days.”
According to data from the Grand County Board of Realtors, the majority of properties sold so far this year range from $600,000 to $999,999.
Inventory below $600,000 in Grand County is increasingly scarce with only 13 single-family homes currently on the market.
In addition to the incredible demand and low inventory, external factors such as rising construction costs, labor shortages and supply chain issues also contributed to selling prices. extremes.
Single-family properties ranging from $1 million to $1,999,999 in 2021 are up 52-55% from last year, according to GCBOR data.
However, there are still opportunities for buyers.
With rental rates rising, Morrow urged interested buyers to contact a lender as interest rates remain favorable
“If people are willing to spend $3,000 a month on rent, that could potentially get them a $600,000 or $700,000 house, for which there is inventory,” she said.
Morrow said the market is holding up, so unlike the market in 2008, a crash is unlikely and current trends are likely to continue until more inventory becomes available.
“The appraised values of the properties are always equal to or higher than the contract price,” she added. “The biggest problem is that we don’t have inventory of people moving into the community.”
Building permit numbers indicate Grand County is picking up the pace of construction as 2021 sees a record number of permits for single-family homes, according to Steve Jensen of the Grand County Builders Association.
Not counting construction in Fraser, Granby or Winter Park, Grand County has issued 237 permits for single-family homes so far this year, compared to 95 in 2020 and 108 in 2019 for the same period. Of the permits issued this year, 89 are fire reconstructions. .