We are excited to release our latest Market Report, analyzing the Q4 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.
The real estate market in Southwest Colorado has been extremely hectic for both buyers and sellers since the start of the coronavirus pandemic. As a result, record price appreciation, low mortgage rates, and cutthroat competition among buyers have persisted for the better part of two years.
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. As a result, the average days-on-market in the 4th quarter of 2021 for homes in La Plata County was 80 days, a slight increase compared to the 3rd quarter of 2021 at an average of 74 days-on-market. However, in comparison with the 4th quarter last year, days-on-market for La Plata County residential homes decreased by 35%, going from an average of 123 days-on-market to 80.
One trend that will likely continue into 2022 is the lack of inventory in Southwest Colorado. La Plata County inventory dropped 29.6% in the 4th quarter in comparison with the 4th quarter of 2020, according to CREN, MLS data.
Median sold prices for residential homes in La Plata County rose by 9.2% in the 4th quarter of 2021 compared to the 4th quarter of 2020. The increased demand and low inventory continue to drive the median sales price up in La Plata County. For example, the average price of a single-family home in-town Durango increased by 18%, reaching a median sales price of $719,750 for the 4th quarter of 2021. Overall, the total dollar volume sold in La Plata County for the 4th quarter was $215,823,940 – a 4.8% increase from the same period in 2020.
The luxury real estate market in La Plata County, defined as properties priced at or over $1 million, has seen increases in buying activity in the 4th quarter of this year! There was a 52% increase in the number of luxury properties sold compared to the 4th quarter of 2020—with an average median sales price of $1,400,000.
The average sale to list ratio across several micro-markets for the 4th quarter was 100%, even up to 102% across some price points. However, the luxury market still sees a consistent 98% sale to list ratio. The luxury market has seen a spike in the last two years in Southwest Colorado. However, the demand combined with low inventory is not as high as the market below $1 million. For example, active listings in La Plata County are only down by 23% in the luxury market compared to the 4th quarter last year. The inventory below $1 million is down 62% compared to the 4th quarter of 2020.