Summit County Colorado Market Statistics - April 2011

February on plateau from January

Slow but sure signs of improvement

February 2011 had a total of 65 residential improved transactions, down 11 from 76 in January 2011. Note that December 2010 had 129 transactions, making February 50% down from the total number of transactions in December! Total residential dollar volume in February was $33.2 million down from $40.2 million in January. Total number of transactions in February for all types of real estate was 89, increasing from January's 87 by only two transactions. March 2011 residential sales from our MLS indicate 69 residential properties sold with dollar volume at $36.7 million - showing that 2011 is starting out at a low plateau of sales.

The price point with the most activity in February is the under $200,000 price point with 13 sales. Tied for second place is the $200,000 to $300,000 sector and $400,000 to $500,000 sector with 11 sales each.

Average prices from 2006 to 2010 are below; 2011 numbers reflect year to date.

Single Family Homes:

2006 - $737,253
2007 - $798,889
2008 - $835,803
2009 - $905,030
2010 - $770,797
2011 - $705,177 ($767,461-January)

Multi Family:

2006 - $333,501
2007 - $406,529
2008 - $463,633
2009 - $398,051
2010 - $425,080
2011 - $429,237 ($426,174-January)

Vacant Land:

2006 - $311,951
2007 - $391,587
2008 - $470,260
2009 - $399,025
2010 - $336,625
2011 - $185,923 ($221,950-January)

As of April 4, 2011, there are 1,374 residential properties for sale, up 28 from last month. The total dollar value of current inventory is $1.012 billion. As of the same date there are 354 land listings, down 3 from last month.

With respect to residential listings, average days on the market is 183 down dramatically from last month's 276. The notable reduction in days on the market is again likely due to 28 new listings coming into inventory on top of last month's 38 new listings. As summer listing season comes closer, expect days on the market to continue to fall. Five-hundred and sixty four or 41% of these listings have been on the market for more than 120 days - last month this number was 890!

Our MLS is showing 154 residential properties currently Pending, up 20 from January. Total dollar volume of pending properties per list price is $92.3 million.

According to Summit County assessor data there are 25,660 residential properties and 2,564 pieces of vacant land. When looking at inventory for sale, 5% of residential properties are for sale and 13.8% of vacant land parcels are for sale. Industry experts say that a healthy market has less than 10% inventory.

Industry experts also say that more than 6 months of inventory is a sign of a weak or "buyers" market. With 65 residential properties selling in February and inventory of 1,374, it will take 21.1 months to sell the entire residential inventory. Now, while there might be less than 10% of properties for sale, the lack of buyers can make for a long holding time.

Below are the total dollar amounts of sales in February from 2004 to 2011:

February 2004 $62.7M
February 2005 $72.1M
February 2006 $76.6M
February 2007 $88.3M
February 2008 $64.5M
February 2009 $27.2M
February 2010 $36.0M
February 2011 $38.3M

Total Dollar Volume for 2004-2010 is as follows:

2004 $1.12B
2005 $1.47B
2006 $1.63B
2007 $1.63B
2008 $1.06B
2009 $683M
2010 $698.4M

The year 2006 had the most dollar volume totaling $1,637,874,800.

What does all of this mean to you?

January and February are historically low dollar volume months compared to other months. The good news is that in 2011, these two months showed slight improvement over the same months in 2009 and 2010. People are making purchases, entering leases, and feeling more confident with the economy. Activity is increasing slowly in a generally slow time. I still anticipate that 2011 numbers will increase over 2010; slowly and surely.

To the Sellers out there: You may be feeling frustrated about a lack of offers or even a lack of showings. I want to assure you that you are not alone! I have outlined Seller considerations for many months, but the bottom line is - if you need to sell, the one way to make it happen in this market is to price reduce.

To the Buyers out there: I have been working with some buyers looking for the "great deals" and we must be finding them because when it's time to make an offer, there has been competition every single time! The marketplace, while slower compared to past years' activity, is very vibrant in the distressed sector. As with all goods, the most competitively priced as compared to the product's value will sell more and faster than other products. Same for real estate - if it's well priced in the marketplace, you can bet that others are found the same deal!

For more information or for a customized property search, please contact me!

www.landmarkregroup.com