Going into 2022 real estate agents are still seeing the same market they have for the last couple years. As the prices continue to rise with the lack of inventory it is getting challenging for buyers. Now that the real estate market is showing some shift in many areas towards the buyers (although it is still a sellers market in almost every area in Colorado) the fed is signaling a raise in rates and that will affect the market. With the raising of rates the buyers’ purchase power is not as strong.

 

As the chart shows the market is still showing a strong price affirmation. The average sale price in Evergreen, Conifer, Morrison, Idaho Springs and Golden continue to prove value at around $800,000 for the last 12 months. These prices have proven to hold for a few years now. 

As the market continues to see demand stay steady and the existing home inventory continues to stay low prices will continue to rise. It is still a great time to be a seller and if a buyer is planning to but and get a conventional loan, they will want to act early in the year. THere are reports of possibly 5 rate hikes in 2022 and that will, without doubt, have a negative impact on buyers willingness to pay over market value as the have for the last couple years.

As mentioned buyers are paying over “current market value” in order to win offers over the rest of the buyers in the market. Although buyers have taken a leap of faith and made offers over the value of the property on the day of the offer, we are seeing them appraise anyways. Keep in mind most appraisals use sold comps. Those comps are a lagging indicator. Meaning they are all at least a month old. The actual sale price is not known until the closing occurs. In a crazy sellers market we can see an increase of 17% in one month. As crazy as that might seem that will be the new value and increase between the time the offer was written and the property is transferred to the new owner. So even if at the time of the contract if the offer is 17% more than the value on the day of the offer many times the buyer is still closing at the value of the contract price. 

The next important data point to help understand real estate market trends is the average days on market. This is an important factor in the real estate world because it tells the buyer’s interest in any given area. It also tells real estate agents the demand of that area. 

As the days on the market chart shows the market is back below 30 days on market after 3 months (around the holidays) of being slightly over 30 days. The holidays are always a little slower than the rest of the year for real estate agents but anything around 30 days on market is considered (at least not long ago) a very fast contract time frame. 

Number of Homes for Sale on The Market

The last indicator the market looks at is the number of active listings. This is how many homes are for sale at any given time frame. As usual, the summer has the most amount of homes for sale. The number of active listings continues to drop and that will affect the market considerably moving into the spring if the market doesn’t list more homes. The number of homes for sale is one of the biggest driving factors of price. The main indicator in the supply and demand numbers. Without more supply and increase in  demand there will be rising prices once again. The rising rates will not counter the lack of products to sell

Evergreen, CO Realtor Danny Skelly Employing Broker

30792 Southview Drive #110 A | Evergreen, CO 80439 | 303-503-8793

My name is Dan Skelly I am an Evergreen, CO Realtor that specializes in mountain properties and real estate. I

Luxury Real Estate AgentLuxury Realtor for Any Size Transaction

have experience with things that make mountain properties unique. I also specialize in luxury homes, horse properties and farms and ranches. I am a different kind of Realtor. Give me a call so I can discuss all your real estate needs.

I am a Realtor that knows mountain properties and city properties as well. If you want to make sure your transaction goes smoothly you you need a real estate agent familiar with septic, well, easements, radon, septic, city water, water districts and everything else that comes up on a mountain or a city property.

I am a Realtor that has an extensive background in in web design and marketing. I owned a marketing company in Florida that specialized in real estate marketing and branding. As a seller agent (broker that sells your home) I will make sure your property is seen by everyone looking in that price point and in your area. Too many real estate agents do not understand the power and the need of the internet. I do and as your Realtor I will use it to its full capacity to market your home. NAR (National Association of Realtors) has determined that almost 90% of home buyers find their home on the internet. It only makes sense that we use that tool as efficiently and often as possible.

I promise I will call back. I have had real estate agents (back before I became a broker) that would not return my calls. That drove me crazy. I will always return your call, text or email.   I understand as your real estate agent I work for you. You are my boss. I devote as much time to the client that buys a $10,000 piece of land as the client that buys the 17 million dollar luxury mountain home.


Danny Skelly 
Orson Hill Realty LLC
Owner/Employing Broker #100043470
30792 Southview Dr. #110A
Evergreen, CO 80439
303-503-8793
303-835-9895