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by Erin Eicher2 views·Updated Jan 8, 2022
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  1. 2021 was a record year for real estate
  2. in La Plata County with median residential sales
  3. price at an all time high and months supply of inventory at an all time low,
  4. But the landscape for 2022 appears to be different.
  5. Hi,
  6. this is Aaron Iker managing broker with re
  7. max pinnacle and Colorado Property group in Durango colorado
  8. 2021 was met with plenty of buyer and seller uncertainty wondering
  9. whether or not now is the time to enter the market.
  10. The one thing that continues to support residential real estate values in La
  11. Plata County is something that doesn't appear to be going away anytime soon
  12. and that's quality of life.
  13. But let's take a look at the year end 2021 numbers and
  14. then we'll talk a little bit about what we can anticipate.
  15. In 2022
  16. Median residential single family selling price increased to $587,000.
  17. That's a 20% year over year increase condos and town homes had
  18. a banner year as well increasing 26.5% during the same timeframe.
  19. Many buyers are now seeing condos and town homes as the new starter home.
  20. In March, april and may, we saw a months supply of inventory creator
  21. landing in june somewhere between one and two months supply and staying there since
  22. to give that a little perspective,
  23. A six months supply of inventory is considered a healthy buyer seller,
  24. balanced market and at 1.2 months we're lacking some 600
  25. homes to meet the buyer demand where it's currently at
  26. Days on market fell simultaneously during that same time frame.
  27. Also settling in right around June at around 90 days. For days on market,
  28. We saw 1,441 residential sales in 2021.
  29. Which compared when compared to 2020
  30. is only 3% off of the year prior.
  31. And really
  32. this is more an indication of the kind of
  33. buyer that's been entering the market and buyer standards
  34. as we're seeing homes that required more care and
  35. maintenance selling than maybe would have in the past,
  36. Average sales price for single family homes skyrocketed over $700,000
  37. and condos and town homes landed right around 462.
  38. But what can we expect in 2022,
  39. the Fed met in december and has indicated that they
  40. plan to increase interest rates quicker than they had originally thought
  41. A 1% increase in mortgage rates would reduce the
  42. buying power of an average buyer by about $50,000.
  43. This will no doubt have an impact on sales prices.
  44. As some buyers that may have had that $50,000
  45. put into repairs and other maintenance items will now no
  46. longer have that and it will change the profile of
  47. the type of person that can purchase that house.
  48. Additionally,
  49. inflation continues to creep up and appreciation
  50. 20% year over year is not sustainable.
  51. Historically,
  52. average property appreciation in Colorado has hovered right around five
  53. and if increasing interest rates impacts buyer demand and we see
  54. a return to a normal level of appreciation for property values.
  55. Summers may actually lose money if
  56. inflation increases over property appreciation,
  57. even if
  58. the end sales price at the end of the year is higher than it would be right now,
  59. of course,
  60. there's still plenty of uncertainties in the political
  61. landscape and as covid cases continue to increase,
  62. that may impact fiscal policy as we head into the year.
  63. Either way,
  64. speaking with an agent that's been monitoring the market closely and can help
  65. you make good decisions based on your life is a worthwhile endeavor.
  66. I hope you have a happy, healthy and prosperous 2022. Thank you.