Breckenridge Local Updates, Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

May 6, 2024

NAR Settlement – Real Estate Commissions

On this blustery day in the mountains, I wanted to take a moment to help explain the recent NAR Settlement – Real Estate Commissions

No doubt there are many of you have been reading about the class action lawsuit settlement between the National Assoc of Realtors and the plaintiffs regarding a commission dispute. 

The main premise of the suit is that the plaintiffs accused realtors and real estate agents of ‘price fixing’ commissions. The reality of the situation is that commissions have always been fully negotiable. In the perfect scenario an agent will have discussed the commission to sell the house and that this commission is split with the buyer’s agent. Colorado listing agreements offer sections to fill in both the gross commission and what the split between the two agents will be. All parties then are required to sign (and hopefully have read) the listing agreement.

So where did the issue arise from? My belief is that there have been documented cases (voicemails, video calls etc.) of brokers saying something along the lines of…… “if they are not paying X% commission, then I won’t show the property” – This is against the code of ethics and basically very bad business. Steering clients is not allowed. Whilst not commission fixing, enough examples of this allowed the plaintiffs to make a case worthy of a settlement if not one that would have held up in court. It is worth noting that the NAR did not admit to any wrongdoing.

The reality is that because of these steering situations, the settlement was agreed upon with certain provisions. The settlement still must be ratified by the DOJ – most likely either July or August this summer.

The two main outcomes are as follows:

1. There can be no mention of the co-op commission that a seller is offering to the buyer agent in the MLS. The offer of a co-op commission can however be publicized on the brokerage website or non-MLS literature, or a buyer’s agent can ask the listing broker directly if the seller is offering a commission. 

2. Buyer’s agents are required to sign up all buyers to a Buyers Agency agreement prior to showing any property. This agreement requires the compensation being paid to the buyer’s agent to be clearly cited.

So, what does this mean for the consumer? i.e., the seller and buyer. 

I think there will be more transparency in the process for all agents and consumers. For experienced agents who have always used buyer agency agreements and explained commission levels to sellers, this will not be a huge departure from the norm. For some it will no doubt be a change.

The seller can still offer a co-op commission to the buyer’s side.
The seller can offer seller concessions to the buyer to cover closing costs etc. 
The buyer’s agent can still ask if the seller is offering a co-op commission.

There has been some discussion or indeed hope that this will reduce the price of housing. My professional opinion is that this will not be the case. With inventory levels low and sellers still feeling in a position of strength, I do not think they will drop their pricing. This is not to say that more systemic changes in the economy or interest rates won’t still have an impact on pricing.

I think that there is still a very good argument for sellers to offer a co-op commission. 

1. It ensures that both sides of the transaction are represented by qualified professionals who are incentivized to engage in the successful closing of the contract.
2. It ensures that the buyer does not have to use funds ear marked for a down payment on a home to pay their buyer’s agent. 
3. Having unrepresented buyers or buyers being represented by the listing agent can expose the contract to bias and ensuing legal matters. 

Ultimately, the onus is on us as real estate brokers to demonstrate our value, the value in showing and identifying suitable properties, the value in writing up a winning contract and the skill of negotiation, and finally the often-misunderstood value of the closing process. Namely all the details, inspections, paperwork etc. that ensures a smooth transaction. Details that often get done without the buyer or seller fully appreciating the behind the scenes work that goes on.

If you would like to have a chat about this, do not hesitate to give me a call.

 

April 26, 2024

Summit County real estate market snapshot - 1st Quarter 2024

 

1st Quarter Real Estate market snapshot

 

YTD All Summit County

There were a total of 303 transactions and $380,439,483 in monetary volume.

The average transaction price for all 18 areas, plus deed restricted transactions, was $1,295,284,

The average residential transaction price was $1,424,366

The average residential Price / sqft was $829. 

 

Market Snapshot for YTD 2024 vs YTD 2023:  

Average indicators for $ amount:

Single Family +18%

Multi- Family +6%

Vacant Land -31% (there has been very little activity)

Median indicators for $ amount:

Single Family +21%

Multi- Family -7%

Vacant Land -48%.

 

Comparative Historical Cost Analysis Comparison YTD 2024-2023-2022: 

In 2024, there were 235 transactions with $334,725,920 gross monetary volume with 127 properties selling for over $1M.

In 2023, there were 211 transactions with $282,899,824 gross $ volume with 98 properties selling for over $1M.

In 2022, there were 308 transactions with $416,484,430 gross $ volume with 145 properties selling for over $1M.

 

FULL REPORT

April 18, 2024

STR Property Tax bill fails - SB024-33

I have some good news to report this morning. Late Tuesday night SB24-033, the proposed bill that would have increased property taxes on homes that were rented more than 90 nights failed in the Colorado legislature. Here is the link from Denver7.
It is a relief to have some breathing space in what seemed a slew of anti STR regulations and rules. Hopefully we can settle into a new paradigm.... albeit one which the following article in the Summit Daily offers a valid argument that we were hasty in implementing STR regulations so soon after Covid and that there is not really the strong reasoning to have such regulations with rental volume flattening across the region. 
Kind Regards, James
Nov. 27, 2023

THE STATE OF THE MARKET AND WHAT TO LOOK FOR IN 2024

 

 

As 2023 draws to a close, it is interesting to see how the market has fared. Here are some year-to-date indicators to start with;

 

  • Market Snapshot for YTD 2023 vs Full Year 2022:  
    Average Indicators;
    Single Family -1%,
    Multi-Family +6%
    Vacant Land -1%

    Median Indicators for; 
    Single Family +1%
    Multi- Family +11%
    Vacant Land -2%

  • Market Analysis % Change YTD October 2023: 
    Monetary volume in October 2023 was up 4% from October 2022.
    Transactions were up 2% from October 2022. 
    YTD 2023, monetary volume is pacing 18% down, transactions 14% down YTD from 2022. 

  • Average Price History by Type YTD 2023: 
    Average price for residential;
    Single Family $2,030,400
    Multi-family: $957,617
    Vacant Land: $662,527

  • Comparative Historical Cost Analysis Comparison 2023-2022-2021: 
    YTD 2023, there were 1018 transactions with $1,351,400,710 gross monetary volume, with 529 properties selling for over $1M.
    YTD 2022, there were 1194 transactions with $1,584,487,607 gross $ volume with 582 properties selling for over $1M.
    YTD 2021, there were 2012 transactions with $2,231,688,763 gross $ volume with 728 properties selling for over $1M.

 

The main takeaway from this is that compared to 2022, multi-family properties are performing well. This is in large part due to the fact that they have not been affected too severely by the Short-Term Rental (STR) license restrictions that have been introduced countywide in Summit County. Whilst you would image that higher interest rates would have had downward pressure on this sector, it has been a long time since positive cash flow could be achieved in our market based on an 80/20 loan to value split and as such, buyers are coming with higher levels of cash, so interest rates are not overbearing.

On the whole, single-family homes have been pretty static price wise. With luxury homes performing better than mid-tier homes that have been affected more by the STR licensing.

It is no real surprise that dollar market volume is down 40% and number of transactions is down 28% since the peak of the post covid surge. The difference in these two % points does illustrate that price points have been in general resilient in our market.

 

Looking forward to 2024

Increasingly the notion of a ‘soft landing’ is looking more and more likely. Inflation rates are closer to the Fed’s target of 2% and recent indicators are showing a cooling in the employment market. With the likelihood of interest rates being maintained at their current levels for the first half of 2024 and potentially dropping in the second half of 2024, along with plenty of liquidity in the economy, my sense is that 2024 will mimic much of 2023 with pricing holding up, inventory remaining low and transactions at a similar level. Look for properties to take longer to sell and buyers to be discerning with where they target. A normalized market that feels similar to 2019 than the rampant market of 2020 and 2021.

 

Written by: James Shingles
Data Source: Summit MLS & Land Title Guarantee Company
Oct. 23, 2023

Breckenridge and Summit County real estate statistics - SEPTEMBER 2023

September topped August in Gross Volume. Notably, the Residence Inn at Breckenridge sold for $40.3M. Transactions were only a few less from August at 176.
  • Market Analysis by Area for September 2023: There were a total of 176 transactions and $261,979,466 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions, was $1,561,116, the average residential price was $1,409,573 and the average residential PSF was $820.
  • Market Analysis by Area 2022 (9 Months) YTD:  There were a total of 1150 transactions with $1,382,976,689 monetary volume. The average transaction price was $1,276,134, the average residential price was $1,333,724 and the average residential PPSF was $796.
  • Market Snapshot for YTD 2023 vs Full Year 2022:  Average Indicators for $: Single Family -1%, Multi- Family +5% and Vacant Land +1%. Median Indicators for Single Family +1%, Multi- Family +10% and Vacant Land -5%.
  • Market Analysis % Change YTD September 2023: Monetary volume in September  2023 was up 28% from September 2022 ( *note-large commercial deal). Transactions were down 2% from September 2022.  YTD 2023, monetary volume is pacing 20% down and 16% down with transactions from YTD 2022. 
  • Residential Cost Analysis:  Residential volume in September had 139 transactions with $195,930,641 gross volume. There were 76 properties that sold for $1M and above in September.  There were 54 Single Family, 85 Multi-Family and 11 Vacant Land transactions in September.  
  • Average Price History by Type YTD 2023: Average price for residential Single Family: $2,047,849, Multi- Family: $946,021 and Vacant Land: $672,680. 
  • Comparative Historical Cost Analysis Comparison  2023-2022-2021:  YTD 2023, there were 881 transactions with $1,175,010,908 gross monetary volume with 453 properties selling for over $1M. YTD 2022, there were 1057 transactions with $1,419,816,434 gross $ volume with 526 properties selling for over $1M. YTD 2021, there were 1738 transactions with $1889,580,012 gross $ volume with 617 properties selling for over $1M.
  • Top Lender Analysis September 2023: There were at total of 252 loans, 96 loans related to sales, 51 REFI's and 105 timeshare loans in September with 45% of real estate deals closing with cash.
  • Purchaser Profile Abstract:  New unit sales were up with 13 in September compared to 12 in August.  There were 83 upper end sales in September compared to 76 in August.   Our buyers for real estate transactions for YTD 2023: Local buyers 29%, Front Range demographic at 37% and 34% were out of state buyers with 0% International. 

Please note that Land Title data comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month. The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate.

 

FULL MARKET STATISTICS - Click Here

Oct. 5, 2023

Breckenridge and Summit County real estate statistics - AUGUST 2023

August 2023 continued the trend of increased transactions and gross volume across Summit County.

Market Analysis by Area for August 2023: There were a total of 179 transactions and $207,167,239 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions, was $1,233,456, the average residential price was $1,323,501 and the average residential PSF was $793.

Market Analysis by Area 2022 (8 Months) YTD:  There were a total of 974 transactions with $1,120,997,223 monetary volume. The average transaction price was $1,222,720, the average residential price was $1,319,515 and the average residential PPSF was $791.

Market Snapshot for YTD 2023 vs Full Year 2022:  Average Indicators for $: Single Family -1%, Multi- Family +5% and Vacant Land -1%. Median Indicators for Single Family +1%, Multi- Family +10% and Vacant Land -7%.

Market Analysis % Change YTD August 2023:  Monetary volume in August 2023 was down 5% from August 2022. Transactions were down 8% from August 2022.  YTD 2023, monetary volume is pacing 27% down and 18% down with transactions from YTD 2022. 

Residential Cost Analysis:  Residential volume in August had 140 transactions with $185,290,106 gross volume. There were 71 properties that sold for $1M and above in August.  There were 48 Single Family, 92 Multi-Family and 7 Vacant Land transactions in August.  

Average Price History by Type YTD 2023: Average price for residential Single Family: $2,038,006, Multi- Family: $941,051 and Vacant Land: $656,152. 

Comparative Historical Cost Analysis Comparison  2023-2022-2021:  YTD 2023, there were 742 transactions with $979,080,267 gross monetary volume with 377 properties selling for over $1M. YTD 2022, there were 922 transactions with $1,233,026,704 gross $ volume with 465 properties selling for over $1M. YTD 2021, there were 1512 transactions with $1,623,212,899 gross $ volume with 528 properties selling for over $1M.

Top Lender Analysis August 2023: There were a total of 291 loans, 105 loans related to sales, 55 REFI's and 131 timeshare loans in August with 41% of real estate deals closing with cash.

Foreclosure Update:  There were 11 foreclosure actions in August, compared to 3 in August 2022, YTD there have been a total of 47 foreclosures actions, 38 being timeshares.

Purchaser Profile Abstract:  New unit sales were at 12 in August compared to 13 in July.  There were 76 upper-end sales in August compared to 67 in July 2023.  Our buyers for real estate transactions for YTD 2023: Local buyers 29%, Front Range demographic at 36% and 34% were out of state buyers with 1% International. 

Please note that Land Title data comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month. The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate.

July 25, 2023

Breckenridge and Summit County real estate statistics - JULY 2023

Below are details about Summit County for June, as well as Q2 2023. 

Market Analysis by Area for June 2023: There were a total of 128 transactions and $141,899,800 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions, was $1,171,322, the average residential price was $1,260,669 and the average residential PSF was $795.

Market Analysis by Area 2022 (6 Months 2nd Quarter) YTD:  There were a total of 649 transactions with $744,874,039 monetary volume. The average transaction price was $1,213,122, the average residential price was $1,315,607 and the average residential PPSF was $788.

Market Snapshot for YTD 2023 2nd Q 2 vs Full Year 2022:  Average Indicators for $: Single Family -3%, Multi- Family +5% and Vacant Land -14%. Median Indicators for Single Family -2%, Multi- Family +9% and Vacant Land -17%.

Market Analysis % Change YTD June2023 2nd Q:  Monetary volume in June 2023 was down 25% from June 2022. Transactions were down 20% from June 2022.  YTD 2023, monetary volume is pacing 34% down and 25% down with transactions from YTD 2022. 

 

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July 24, 2023

Skiing in Summit County Colorado

Exploring the Winter Wonderlands of Breckenridge, Keystone, Copper Mountain and A-Basin

 

Introduction:

Nestled in the heart of the Colorado Rockies, Summit County is a winter wonderland for skiers and snowboarders alike. With its picturesque landscapes, abundant snowfall, and world-class ski resorts, this region attracts snow enthusiasts from all around the globe. Boasting a delightful blend of charming alpine towns and exhilarating mountain terrains, Summit County offers an unparalleled winter sports experience. In this article, we will take a closer look at four of the most renowned ski resorts in Summit County: Breckenridge, Keystone, Copper Mountain, and Arapahoe Basin.

 

Skiing on Peak 10 Breckenridge

 

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May 2, 2023

Summit County Short Term Rental License Info Sheet

April 28, 2023

Breckenridge and Summit County real estate statistics - March 2023

Below is a recap from the first quarter of 2023:

Market Analysis by Area for March 2023: There were a total of 122 transactions and $128,782,372 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions, was $1,144,193, the average residential price was $1,332,850 and the average residential PSF was $712.

Market Analysis by Area 2022 (3 Months) YTD:  There are a total of 277 transactions with $316,291,267 monetary volume. The average transaction price was $1,212,404, the average residential price was $1,340,757 and the average residential PPSF was $758.

Market Snapshot for YTD 2023 vs Full Year 2022:  Average Indicators for $: Single Family -1%, Multi- Family +3% and Vacant Land -29%. Median Indicators for Single Family -9%, Multi- Family +6% and Vacant Land -22%.

Market Analysis % Change YTD March 2023:  Monetary volume in March 2023 was down 32% from March 2022. Transactions were down 26% from March 2022.  YTD 2023, monetary volume is pacing 33% down and 30% down with transactions from YTD 2022. * $ and transactions are pacing at 2019-18-17 levels, which were considered "normal" March real estate trends.

Residential Cost Analysis:  Residential volume in March saw 83 transactions with $110,626,550 gross volume. There were 43 properties that sold for $1M and above in March.  There were 36 Single Family, 47 Multi-Family and 13 Vacant Land transactions in March.  

Average Price History by Type YTD 2023: Average price for residential Single Family: $2,039,819, Multi- Family: $922,380 and Vacant Land: $471,425. 

Comparative Historical Cost Analysis Comparison  2023-2022-2021:  YTD 2023, there were 211 transactions with $282,899,824 gross $ volume with 98 properties selling for over $1M. YTD 2022, there were 308 transactions with $416,484,430 gross $ volume with 145 properties selling for over $1M. YTD 2021, there were 441 transactions with $455,716,217 gross $ volume with 130 properties selling for over $1M.

Top Lender Analysis March 2023: There were at total of 272 loans, 86 loans related to sales, 51 REFI's and 135 timeshare loans in March, with 30% of real estate deals closing with cash.

Foreclosure Update:  Up in March 2023 with 10 compared to last March 2022 with 2, YTD 2023 there have been a total of 12 (8 Timeshares and 4 Fee Simple).

Purchaser Profile Abstract:  New unit sales were 14 in March compared to 16 in February 2023.  There were 44 upper end sales in March compared to 35 in February 2023.  Our buyers for real estate transactions for YTD 2023: Local buyers only at 29%, Front Range demographic at 36% and 35% are out of state buyers with 0% International. 

Click here for the full report

Please note that Land Title data comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month. The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate. 

Data Source - Land Title Guarantee Company