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A Quarterly Guide to Summit County's Real Estate Market & Happenings
Summer 2021 Edition | Curated by The Summit Real Estate Team
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SUMMIT COUNTY SUMMER MARKET INSIGHTS
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Smokin’ hot!  As we enter our summer sales market – so far there have been 820 sales. The biggest group – 111 -were in the $400,000-$499,000 range, so even though our average sales price in Summit County Y-T-D is right at $1,000,000 for all properties, that is a bit distorted by the few uber high end sales we are seeing. We had 5 sales over $5,000,000 so far this year!
How fast are things selling? The majority of properties are hitting the market and going under contract in under 30 days.
Interesting fact: Of the 820 sales so far this year, 238 were cash deals. That’s 30% of buyers who paid cash. 67% of all buyers are still getting a loan in today’s market.
The list to sell ratio (the percentage of the listing price that the property sells for) has popped over 100% for the first time in Summit County history! It’s right at 100.9%!
In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price
For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.
Today is different.
The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.
According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):
“For every listing there are an average of 5.1 offers. Half of the homes are being sold above list price.”
You may need to change the way you look at the asking price of a home.
In this market, you likely cannot shop for a home with the former approach of negotiating to a lower price.
Due to the low supply of houses for sale, many homes are now being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they are selling. A reserve price is the minimum amount a seller will accept as the winning bid.
When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It is the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.
Bottom Line
Someone who’s more familiar with the housing market of the past than that of today may think it’s foolish to offer more for a home than the listing price. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions right now.
Feeling overwhelmed? Let’s connect today! You need a guide up here in the mountains who is on your side! Thinking of selling? We can provide the best advice on how list your property at an attractive price to generate the most interest. If you’re a buyer, we are great at helping you make a competitive offer on a mountain home.
Let’s connect!
Warmly
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Americans Choose Real Estate "The Best Investment"
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Dillon discuss concepts for proposed workforce housing development
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Summit County moves forward with safety measures for Dillon Valley neighborhood
Colorizing pedestrian and bike lanes, installation of speed signs and more approved for this year. During a Summit Board of County Commissioners work session on Tuesday, May 4, Summit County officials said they are moving forward on implementing short-term safety measures in the Dillon Valley neighborhood. Read More Safety.
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Dillon launches facade-improvement project in an effort to beautify the town core and draw more visitors
Dillon officials are trying to beautify the town core in order to help drive more visitors to existing shops and restaurants and entice new businesses to open up in the area. More Beautify.
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Dillon, Summit Cty consider roundabout at US Hwy 6 & Lake Dillon Drive to improve safety
Dillon and Summit County officials are in early discussions about bringing a new roundabout to the intersection of U.S. Highway 6 and Lake Dillon Drive, a move meant to help slow traffic in the area, support growing car volumes and provide better connectivity for pedestrians. More Improve.
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WE LOVE WHAT WE DO & Love to Hear From You!
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"Deena is the consummate professional and exceeded expectations in securing my new home. As a first time home buyer I had basically zero knowledge and understanding of the real estate market and what it takes to purchase a home. Deena made sure that I was completely informed through the entire process and even to provide additional knowledge and guidance after I closed on my home. She was very timely in her responses and even went as far as to respond to my questions and concerns on the weekends and when she was on vacation. There was not a single moment when I felt like Deena didn't have my best interest at heart. She handled everything in a quick and easy manner and made sure I had as little of a burden as possible in the entire process. She was very upfront with how she viewed the market and what it would take to secure the home we were interested in. I would highly recommend her to anyone looking to purchase a home and would feel completely confident she would exceed expectations as a real estate agent for them like she did for me." Nathan S.
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Major Home Equity Gains more Most Americans
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Today's home price appreciation is driving equity higher throughout the country. If your needs are changing and you're ready for a new home, your equity may be a great asset to power your next move. Now is a great time to put your equity toward a down payment on the home of your dreams.
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Source: CoreLogic/Q4 Data- Based on U.S. homeowners with mortgages (roughly 62% of all properties)
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