We are excited to release our latest Market Report, analyzing the Q3 performance of this year compared to the same time frame during 2020. The following is a short overview of the current market in Southwest Colorado, highlighting a few notable themes.
Through the first half of the year, Southwest Colorado’s real estate market has seen dramatic increases in buying and selling activity, indicating that consumers are ready to begin their following chapters in homes that match their desired lifestyles. This boom is likely a continuation of the surge in real estate sparked by consumers’ need for more space, privacy, and amenities last year. In addition, the appreciation in home values, which has been influenced by heightened demand for homes in Southwest Colorado, has benefited sellers this year.
Inventory levels remained low in the 3rd quarter, decreasing by 57% in La Plata County compared to Q3 2020. Median sold prices for all property types in La Plata County rose by 24% at a median sales price of $549,000 due to elevated demand. For example, the average price of a single-family home in downtown Durango increased by 13%, reaching $650,000. Overall, the total dollar volume sold in La Plata County for the 3rd quarter was $823,527,496 – a 27% increase from the same time period in 2020.
The luxury real estate market in La Plata County, defined as properties priced at or over $1 million, has seen even more astounding increases in buying activity in the 3rd quarter of this year! A 36% increase in sales volume compared to the second quarter of this year. When comparing the 3rd quarter of 2020, there is an increase of 87% in sales volume. During January through September of this year, there were 333 luxury homes sold in La Plata County with an average price of $1,299,000.
The competition in the Southwest Colorado housing market remains fierce, and it is consistently skewed in favor of property owners across almost all price ranges. As a result, homebuyers are paying thousands of dollars more than the asking price. The average sale to list ratio across several micro-markets for the 3rd quarter was 100%, even up to 102% across some price points.
Moving into the last quarter of 2021 the market has slowed down a little, although that is the historical theme for this time of year. We hope the Southwest Colorado market continues to be rewarding for sellers and buyers, offering the opportunity to experience a highly coveted lifestyle of unsurpassable beauty for the rest of 2021 and beyond.