Although the Summit County real estate market performed well in Q3, buyers are starting to be skeptical of new short-term rental programs.

A five bedroom home at 84 Pheasant Tail Lane in the Angler Mountain Ranch subdivision of Silverthorne is listed for sale in 2019. The Summit County real estate market is still strong in the third quarter of 2021.
Eli Pace / Summit Daily News archives

It’s clear as day: The Summit County real estate market is still going strong. When looking at the average price per square foot, average transaction price, monthly sales volume, and number of sales for properties $ 1 million and over, the community real estate market is still trending.

But below the surface, realtors are starting to chat with buyers about the community’s short-term rental programs and regulations. Some fear that what happens in the future will impact the market next quarter or next year.

Despite everything, the third quarter of the local industry performed well in all respects. Dana Cottrell, former chair of the board of directors of Summit Realtors and broker of the Summit Resort Group, said that July, August and September are historically among the busiest months of the year, mainly because it is at this time. – where many agents are closing the deals they sent out weeks ago. . At the end of September, agents usually don’t close as many deals, but this year some are singing a different tune.

“What I see is that we are doing a lot of deals, that our number of sales is still quite large,” Cottrell said.

Allison Simson, owner and broker of The Summit Real Estate Team, corroborated Cottrell’s experience. This time of year usually has some of the busiest and strongest months, and it has been true.

According to the month of July from Land Title Guarantee Co., August and september reports, the county’s real estate industry has had approximately 784 sales transactions amounting to over $ 857 million in monetary volume. Each month also showed an increase in the average price per square foot. In July, that was $ 675, $ 694 in August, and $ 700 in September.

As for what actually sells, homes costing at least $ 1 million make up the majority of inventory, and that held up throughout the quarter. In July, this inventory accounted for about 65% of all sales, about 68% of all sales in August, and about 65% of all sales in September.

Those doubting the market should also take a look at the average price of a resale family home. In July, the average price was around $ 1.64 million and it jumped almost 11% to almost $ 1.81 million in August. In September, it edged up to almost $ 1.83 million.

Even still, it’s difficult to get the big picture of the market without considering what’s going on with the community’s short-term rental market. Breckenridge recently passed a cap on non-exempt short-term rentals that will come into effect on November 2.

All of these discussions, especially with what’s going on in the town of Breckenridge and with Summit County, have buyers and realtors skeptical about the impact of these programs on the local real estate market. According to Land Title reports for this quarter, an average of 77% of buyers are from the Front Range and out of state, meaning a good chunk of those properties are likely being purchased as second homes.

Simson said the programs have caused a lot of uncertainty among buyers and some buyers have waited to proceed with the purchase of a property until the regulations are implemented. Simson said she worked primarily in unincorporated Summit County neighborhoods, such as Wildernest and Dillon Valley, both of which will be affected by the new county rules.

“That’s a lot of people from the Front Range… and they want to buy their second home here and they rely on the rentals to help offset the payment,” Simson said. “… I would say rental income is useful, but it certainly won’t cover all of your expenses. (But) how does that affect them? It’s like any property rights that are taken away from you.

Cottrell said the same thing. She has seen sellers wanting to put their properties on the market before the Breckenridge order goes into effect so that buyers who want to buy and rent their properties have time to do so. Right now, she said she was answering many questions about what these programs will look like once implemented.

“We just don’t have those answers yet,” she said. “The discussions created this air of concern between buyers and sellers. I wonder if there isn’t a bit of, ‘Oh let me sell this before we have these changes, the market is good and then whoever buys it can always do whatever he wants with it. his property. ‘ “

In general, Simson and Cottrell said that while there is a lot of uncertainty about the impact of these rules on the local market, both expect it to remain strong. Simson said she didn’t want buyers to fear the market and that there is currently no evidence that a “crazy crash” will occur.

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