By Gary Hubbell, ALC
Broker/Owner/Auctioneer, Accredited Land Consultant
As the Coronavirus pandemic grinds on and urban dwellers
seek their escape from the city, many thousands of people have embraced a
return to rural living. Western Colorado, in particular, is one of those
destinations that real estate buyers have targeted for their dream place to
live. In the days of fast broadband connections, zoom calls, and telecommuting,
many workers don’t need to show up at the office anymore. People can live
anywhere, and Western Colorado is looking pretty darned appealing, with its
famous ski resorts, Gold Medal trout streams, snow-covered mountain peaks, wineries
and vineyards, cattle ranches, and rimrock canyons to explore.
Colorado is one of the most popular states in the
country to relocate
As of August 2021, Colorado had grown to almost 5.8 million
people, a 15% increase over 2010, and those numbers are in the rearview mirror.
Colorado has almost certainly passed 6 million residents in the intervening few
months. It is one of the fastest-growing states in the country. The real estate
market in the Front Range cities of Denver, Boulder, Colorado Springs, and Fort
Collins has been red-hot for several years, with home sellers experiencing
dozens of offers and final sales prices far above the original listing price. Not
to be outdone, the Western Slope, which is naturally on the western side of the
Continental Divide, is growing at a record pace. Grand Junction, the largest
city on the Western Slope, is practically out of building lots, and housing
prices have accelerated quickly over the past two years. Modestly sized
building lots that would have sold for $50,000 or less three years ago are
approaching $100,000—if they’re available.
Western Colorado Real Estate Inventory is at Record
Low Levels
Today’s sales activity far surpasses the previous high-water
marks of 2005-2006, which recorded the highest prices and fastest sales
activity since the mining camp days of the 1800’s. It came tumbling down in a
hurry with the real estate crash of 2008-2009, and then the doldrums hit. In
2010, the market was at its absolute lowest point of the 2000’s, with many thousands
of unsold units on the market. In the Delta County MLS, for example, there were
650 homes on the market in 2010 and the average duration on the market was over
a year. Today there are 100 homes on the Delta County MLS and the average
duration on the market is a month and half—which is about how long it takes to
get a loan approved.
In Grand Junction, there are 241 single-family homes on the
market—many of them trailers and double-wides—and there are 843 agents and brokers
in the Grand Junction MLS, or almost four agents for every home. In the Colorado Real Estate Network (CREN)
MLS, there are typically anywhere from 15-20 and as many as 50 or 60 expired
listings. CREN covers most of Southwest Colorado, including major towns such as
Durango, Pagosa Springs, Alamosa, Gunnison, Crested Butte, Montrose, Ridgway,
Delta, Hotchkiss, and Paonia. On many recent days there have been no expired
listings at all and sometimes only one. The Aspen-Glenwood MLS and the Grand
Junction MLS are showing similar numbers. In the CREN MLS, there are 1,839
active agents and 631 residential listings, or about 3 agents for every
single-family home.
Western Colorado Home Prices Accelerated Rapidly in
2021
In Delta County, which has traditionally been one of the
lowest-priced counties in Western Colorado, average home prices accelerated 24% from December 2020 to December 2021, jumping
from an average price of $324,900 to $404,000. That was after a similar jump
from 2019, when the average home sold for around $280,000.
