2024 Year-End Review for Southwest Colorado Real Estate

In 2024, Southwest Colorado's real estate market showcased resilience and stability throughout the year, navigating the lingering effects of limited inventory while adapting to a more balanced market environment. While inventory levels haven’t reached pre-pandemic figures, they have improved significantly, with 1,037 average monthly active listings—almost twice the lows of 2021. This recovery brought more choices for buyers, although inventory remains tight compared to historical norms. A total of 2,408 sold listings reflected consistent transaction activity, staying on par with 2023 (2,388 sold listings) but still below the pandemic highs of 2020 (3,734 sold listings) and 2021 (3,829 sold listings).

Pricing Trends

Home prices in the region continued their upward climb, with the average sold price hitting $1,107,059 in 2024, a notable jump from $954,868 in 2023, and more than three times the $275,797 average from a decade ago. Luxury markets, including San Miguel and Ouray counties, played a significant role in driving up the regional average, while more affordable markets experienced steady but gradual price growth. This demonstrates the sustained appeal of Southwest Colorado's real estate, even amid inventory constraints.

Market Efficiency

Homes sold faster in 2024 than during the pre-pandemic decade, with the average days on market (DOM) coming in at 131 days, down from 157 days if we look back 10 years ago. However, this is still slower than the lightning-fast sales pace of 2022, when the DOM averaged 95 days. Buyers in 2024 prioritized move-in-ready properties, leaving homes requiring updates to linger longer on the market. Many of these renovation-needing properties struggled to attract offers that reflected the equity gains of recent years, highlighting buyers’ growing focus on convenience and value in today’s market.

Opportunities for Sellers

Sellers managed to secure 96.3% of their asking price on average, an improvement over the 95% seen in 2014, though slightly below the peak conditions of 2021-2022, where ratios exceeded 98%. Homes that were updated and staged stood out, selling faster and attracting stronger offers, particularly in competitive segments such as luxury properties. Timing also played a crucial role, with Q3 sales reaching 784 sold listings, the highest of any quarter, highlighting the advantage of listing during peak summer activity.

Quarterly Performance in 2024

Q1 (January-March):

Q1 began the year with a seasonal slowdown, a common trend for winter months. The market saw 404 sold listings and 239 average monthly new listings. Despite slower activity, prices held firm, with the average sold price at $1,107,059. Homes took 131 days to sell, with sellers achieving 96.3% of their asking price, maintaining steady conditions despite the quieter start.

Q2 (April-June):

Spring brought the strongest quarter of the year, with 604 sold listings and 413 average monthly new listings. Homes sold faster during this period, averaging 123 days on market, while the average sold price peaked at $1,337,743, driven by high-end sales in luxury markets. Sellers saw a 97.1% sale-to-list ratio, the highest of the year, underscoring the competitiveness of the spring market.

Q3 (July-September):

Summer saw the highest sales volume of the year, with 784 sold listings and 364 average monthly new listings. Homes moved quickly, averaging 113 days on market, the fastest pace of the year. The average sold price was $1,130,873. September brought a brief slowdown, likely influenced by the election, but activity rebounded swiftly afterward. Sellers achieved a 96.9% sale-to-list ratio, maintaining momentum despite mid-quarter uncertainties.

Q4 (October-December):

As expected, the market cooled in Q4, with 616 sold listings and 206 average monthly new listings. Homes took an average of 159 days to sell, the slowest pace of the year. However, the average sold price remained strong at $888,441, buoyed by continued demand for luxury properties. The sale-to-list ratio dipped to 93.6%, reflecting softer market conditions heading into the winter months.

Notable Trends in 2024

1. Inventory Recovery:
   
   
• Active listings averaged 1,037 per month, nearly doubling the record lows of 2021 (628) but still below the 2,219 monthly average seen in 2014.
• The gradual recovery created more options for buyers while preserving a seller-friendly market dynamic.
2. Sold Listings Trends:
   
   
• 2024 recorded 2,408 sold listings, a slight increase from 2023 (2,388 sold listings), but far below the peaks of 2020 (3,734) and 2021 (3,829).
• Seasonal trends were consistent, with Q2 and Q3 driving the majority of activity.
3. Pricing Growth:
   
   
• The average sold price for 2024 was $1,107,059, significantly higher than $954,868 in 2023 and more than three times the $275,797 average in 2014.
• The luxury markets in San Miguel and Ouray counties were key contributors to this growth.
4. Market Timing:
   
   
• Homes sold faster than in 2014 (157 days) but slower than during the peak of 2022 (95 days). The 131-day average DOM in 2024 reflects balanced conditions, with buyers acting more cautiously.
5. Buyer Preferences:
   
   
• Move-in-ready homes were in high demand, while project properties struggled to sell at the same pace.
• Buyers displayed caution in a higher-rate environment, often passing on homes needing substantial renovations.
6. Seller Performance:
   
   
• Sellers secured an average of 96.3% of their asking price, slightly above pre-pandemic norms but below the 98%+ averages of 2021-2022.
• Sellers who prepared their homes with updates and staging achieved quicker sales and stronger offers.

Looking Ahead to 2025

As we move into 2025, the market shows no signs of slowing down. Buyer demand remains strong, signaling opportunities for sellers to list well-prepared homes. With inventory still limited, both luxury and move-in-ready properties are expected to attract significant interest. Sellers who adapt to current buyer preferences and market conditions will likely see the best results in the months ahead. 

For further details on market trends and to explore opportunities in Southwest Colorado, feel free to contact me. Let’s navigate these changing times together and find the best deals tailored to your needs.

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