We are excited to release our latest Market Report, analyzing the 1st Quarter performance of 2022 compared to the same time frame during 2021. The following is a short overview of the current market in Southwest Colorado, highlighting a few notable themes.
Buyers in Durango continue to compete for listings in Southwest Colorado due to low inventory setting the stage for what could become another year of increased home prices.
The median sales price of a single-family home sold under $1 million in the 1st Quarter of 2022 for the Durango Area was at a record high of $672,754, up by 15.5%. Affordability levels are becoming a more significant concern as prices rise faster than wages in Southwest Colorado. Even though mortgage rates have started to rise, they haven’t yet reached the level needed to take some heat out of the market.
The average time it took to sell a home in the micro-markets in this report dropped by several days compared to the first Quarter of 2021. For example, in the Durango Mountain Area, the average number of days on the market for townhomes dropped to just 39 days, a 39% decrease compared to 64 days in the 1st Quarter of 2021. The housing market remains very tight, as demonstrated by the fact that it took just over a month for properties to sell in a few of the communities listed in this report.
Regarding inventory, the relatively low home sales level is not a surprise given how few choices there were for buyers in the 1st Quarter of 2022. However, sellers are certainly benefitting from strong demand, as demonstrated by the significant price growth. Historically, moving into the 2nd Quarter of the year, there should be an increase in inventory. However, it is doubtful that we will see a balanced Southwest Colorado market in 2022.
The luxury real estate market in Southwest Colorado, defined as properties priced at or over $1 million, has continued to see increases in buying activity as prices rise and inventory remains low. There was a 133% increase in the number of properties sold over $1 million In-Town Durango compared to the 1st Quarter of 2021—with an average median sales price of $1,500,000. The average sale to list ratio across several micro-markets for the 1st Quarter of 2022 was 100% or more. The luxury market has seen a spike in the last few years in Southwest Colorado. However, the demand combined with low inventory is not as high as the market, below $1 million.
In-depth predictions and studying the stats are good, but you may have a more straightforward question: Should I buy a home or sell a home in Southwest Colorado now or wait things out? This question can best be answered by one of our experienced agents. They have graciously navigated the competitive market for the last few years, creating a successful outcome for buyers and sellers in our particular corner of the US.