April Stats are In--Delta County Real Estate Market is Up 25% Over Last Year
By Gary Hubbell, Accredited Land Consultant
United Country Colorado Brokers, Inc.
Hotchkiss, CO -- 970-872-3322
Western Colorado home prices surge with CoVid buyers seeking rural real estate
It comes as no surprise to anyone here in Delta County, but our real estate market is red-hot and up significantly over 2020. There are many explanations for the surge in activity, but the Coronavirus pandemic had a lot to do with people bailing out of cities and moving to the country in record numbers. Historically Delta County has had a fairly slow market, with the critical measure of "Days on Market" lagging behind many other markets. It's not uncommon for a property to sit on the local market for six months, a year, or more before selling. That scenario has changed dramatically.
In April, the average sale price has jumped from approximately $293,000 for a single-family residence to $364,000--a 24.4% increase. Interestingly, the percentage of full listing price compared to sale price rose from 97% to a full 100%. The inventory of homes available on the market dropped 58% in April, and the months' supply of inventory dropped 66% to 1.2 months of inventory. I did a search for a buyer the other day who was looking for a low-cost home in the $150,000 range, and there were only 10 properties in the entire Delta County MLS under $200,000. Most of those listings were mobile homes or older modulars.
This means we have to adjust our parameters when looking for new homes. Just a year ago, if a buyer came to me and said, "I'm looking for a little home in the country on four or five acres, and my budget is $450,000," my answer would have been "Great! Let's go find it!" Today is a very different story. When you're looking at a 20-25% jump in prices, that property is now $550,000 or more in today's market and out of reach for many buyers.
Another complicating factor is the jump in lumber prices, which are up over 300% from last year, adding $36,000 to the cost of a new home over the past year, according to the National Association of Home Builders. Builders are exploring alternative construction methods, such as steel framing, but steel prices are up as well.
Interest rates are still low, which gives a buyer a lot more purchasing power, but inflation is rising and buyers should beware of rising interest rates that are sure to come.
Sellers should take note that this market is very strong and who knows which sort of pinprick might burst the bubble. Timing is everything. If you're thinking of selling, the key to this market is to get your property listed with a competent professional agent with a strong marketing platform. At United Country Colorado Brokers, our industry-leading websites attract buyers from all over the US to find country homes, horse properties, homes in town, historic homes, and all sort of unusual properties that we have here in Western Colorado. Check out our "mother ship" website at homeslandcountrypropertyforsale.com , where we have 40 Special Property Group websites.
Do you need to sell? Do you want to take advantage of a hot market? Call us for a free listing consultation, 970-872-3322