November 2022 Real Estate Market Update
The bite of higher interest rates is being seen in the data this Fall and Winter. The cost to borrow has increased significantly through 2022 which has caused some buyers to be priced out of the real estate market. Average APR for a 30 year mortgages is hovering around 7%.
The quantity of real estate transactions in Summit County in November is down 42% when compared to November 2021. Meanwhile, the average sold price for properties sold in November is up 6%. Year-to-date, the sales are down 40%, with the average sold price up 16%. Sales in November are at 97% of the list to the sold price.
Looking at the Breckenridge data we can see that all news is not bad news for buyers. Currently, 44% of active single family home listings have applied price decreases. Additionally, the average days on the market has been steadily increasing over the last few months and currently sits at 191 days. The shrunken pool of buyers are finding leverage at the negotiating table that was not there last year. However, inventory of available homes available for sale has been decreasing for a couple months and there are only 86 current active single family home listings in Breckenridge. Prices overall remain steady when compared with last year.
Only time will tell where things go from here. If inflation has topped out, as some are speculating, then perhaps the Federal Reserve can soon steady interest rates. Will buyer demand follow?
