People looking for their next home in Colorado will have quite a quest on their hands. Like many other parts of America, Colorado has a low housing stock, hot seller’s market, and rising market listing prices. Here are some important things to consider if you are shopping for a home or getting ready to sell your home.
As noted above, listing prices are rising and especially so in metro areas. Just two months ago, in May 2021, the Colorado Association of Realtors reported the median price of single-family homes reached $500,000. This is an outstanding 1.5 times higher than the nations average. Homes under $200,000 are now a rarity in most areas and cannot be found in Arora. In some areas, listing prices have risen a mere 12%, though in others – like Garfield County – have risen 35% over 2020’s listing prices.
Active listings are down near 50% over last year’s numbers consistently around the state, except condo listings in some areas, which have risen. Listing prices have become ‘minimum’ bid prices, as most homes are selling over listing prices with multiple bids being received shortly after listing. Overall, the lack of listings is proving the bidding wars are here to stay, at least for the remainder of 2021.
While it is a seller’s market, many people are opting to stay in their current homes for the lack of available housing once their house sells. It is difficult to determine how much it has helped slow the market, but the market is very busy nonetheless. Most homes are on the market for just a few weeks before signing an accepted contract with a buyer. On average, listings are selling at 104% for mainstream and resort housing.
Of particular interest and concern, with the rates of current home sales and current listings, there is less than a month’s worth of listings available for active home buyers. This same number generally hovers around 4 months, at least since 2014 when statistics started being recorded.
More than a hot market, many in the industry are calling Colorado’s real estate situation a “frenzied buying market” where listings barely make it onto the market and receive several offers on the same day.
To read the full report, visit Colorado’s Realtors site at https://www.coloradorealtors.com/2021/05/12/median-price-of-a-single-family-home-in-colorado-tops-500000-for-first-time/.