Summit County 2022 Market Year In Review

The 2022 Summit County Real Estate year-end statistics are out! While the data shows 2022 was another incredible year in Summit County Real Estate, the stats also give us a preview of the shifting market ahead of us in this coming year. Read on for our thoughts on what this means for both Sellers and Buyers. 

As we can clearly see from the year-to-year graph above, the average sales price proves 2022 was another year of unprecedented gains in Summit County property value. The average residential sales price for the area (including single-family homes, duplexes, townhomes and condos) was $1,290,984. That's quite a number.

On the other hand, 2022 saw a large drop in the total number of sales in Summit. This drop occured entirely in the second half of the year. Why did the pace of real estate sales slow so significantly and suddenly? Some claim the shift occured as mortgage interest rates jumped above 5%. Some say sales slowed as a result of Breckenridge, Frisco, Alma, Fairplay and Summit County enacting Short-Term Rental (STR) ordinances, which effectively eliminated new Rental License availability* for Buyers in the second half of the year. Others believe that the sales volume was destined to come down since the Pandemic-induced market surge was never going to be sustainable. If you ask us, however, we'll assure you that all three of these factors are playing a part in reducing the amount of local Real Estate sales. 

*Note: the STR landscape has undergone a lot of change in the past 15 months, but now that municipal ordiances have been finalized, Rental Licenses are available in certain areas. Find out more on our STR page!

So what does this mean for Sellers?

For Sellers, it is more important than ever to work with agents who not only have experience, but who are staying ahead of our shifting market. Sellers in 2023 are sitting on an huge amount of equity in their properties. Even as prices stabilize - or possibly drop - you will find that property value gains are still substantial. Take a look at this graphic: 

These price gains are impressive! In times of change, it's easy to focus on the negatives, but it's not all doom and gloom like national Real Estate Trends articles might have you believe. Summit County property has always been a strong investment. We think selling at the top of the market is absolutely still possible by looking at the bigger picture. 

It will, however, take more effort, expertise, and marketing know-how to reach your property sales goals than it has over the last two years. The "list it and forget it" era is well behind us! Details like marketing videos, property ad campaigns, and brand recognition will all make a big difference in 2023. As a team that's passionate about marketing, we're always available to share more about our Listing Plan. Reach out to us any time!

So what does this mean for Buyers?

For Buyers, the shifting market presents unique opportunities to find some great deals and less competition from other buyers . As sales slow, inflated prices come down, and properties sit on the market for longer periods of time, many Sellers are offering concessions that can greatly benefit a Buyer. Thankfully, the days of waiving your Inspection or covering Appraisal gaps to beat out other offers are over. I mean in addition to that, Sellers might offer credits to cover your closing costs, help buy down your mortgage rate, or we've even seen a couple listings offer seller financing.

As you know, we never use 'scare tactics' to convince our clients to buy. However, I will say that if you're looking for a mountain getaway that you can rent out when you aren't using it, now is absolutely the time. As I mentioned above, there are currently Rental Permits available in the Summit area - but only in specific zones and only in specific numbers. Certain areas, like Frisco, will reach a their maximum allowed STR number within the next month. It's always important to work with a local expert, but if owning a second home that is also a vacation rental is a goal of yours, it's even more crucial that you work with an agent with a vacation rental background, who fully understands these new local ordinances and regulations. This is an area in which Steve, Kelli and myself excel in! 

In summary, the 2022 year-end stats show that while change is coming to the Summit Area market, the Colorado Rockies are an asset you won't find anywhere else. The mountains are a special place, and those of us who know that, know that our Real Estate market will continue to reflect Summit County's enduring popularity.