Colorado mountain housing shifts to balanced market

The transition is characterized by increased inventory, a slowdown in sales activity and a wider range of pricing trends that vary by location and property type.

Across several mountain communities, including Crested Butte, Vail, Summit County and Steamboat Springs, inventory is up — a welcome change for buyers who are finding more options and negotiation opportunities, according to the latest Market Trends Report from the Colorado Association of Realtors.

The supply of single-family homes and condos is at its highest point in years, in some cases reaching levels not seen since before the COVID-19 pandemic.

But this has also led to properties staying on the market for longer periods. For instance, single-family homes in Summit, Park and Lake counties are spending about 40% more time on the market than last year.

“Buyers have more choice,” said Dana Cottrell, a realtor with Summit Resort Group in Dillon. “People just have the time to shop around and say, ‘OK, I think that condo in Wilderness has 1,200 square feet for the same price as near the ski areas for a studio or a one bedroom. I think that when people are doing these comparisons, it takes them more time to decide what to buy.”

Sellers, in turn, are having to adjust their expectations, with many needing to offer concessions or lower their prices to attract buyers. The percentage of list price received is hovering around 97% in Steamboat Springs, a slight decrease from the high-demand periods.

Molly Eldridge, a realtor with Coldwell Banker in Crested Butte, said buyers are nervous about paying too much and sellers are reducing prices from what they were earlier in the summer.

“It seems like we’re seeing deals falling out of contract — people are backing out,” Eldridge said. “Some could be that they can’t get a loan or there’s an inspection issue. Buyers are nervous about what’s happening in the world.”

Despite the overall market slowdown, there are differences in how various areas and property types are performing.

• Crested Butte versus Gunnison: While overall sales in the broader region are up 6% through August, dollar volume is down 5%. In the Crested Butte area, both sales and dollar volume are down, while Gunnison is seeing an increase in both sales and dollar volume with condo and townhome prices surging by 73%.
This disparity is largely because of the relative affordability of Gunnison properties, with the average single-family home price being roughly one-third of that in Crested Butte.

• Single-family versus multifamily home: In Vail, single-family home sales and new listings were up in August, while the townhome/condo market was down. In Summit County, single-family homes saw a price drop of 4.9%, while multifamily properties saw a price increase of 7.2%.

In Steamboat Springs, single-family home new listings are up significantly, but sold listings have been lackluster. The number of multifamily units on the market is also much higher than last year.

• Luxury market: The high-end market remains a bright spot. While the overall market cools, luxury properties are still seeing strong demand. In Summit County, single-family homes over $10 million surged by 150% year-to-date, and properties in the $1.5 million to $2 million range climbed by 79%. Cash deals are also on the rise, accounting for 45% of all transactions in August.

l