It’s no surprise, then, that we entered 2022 with predictions of another strong year for Colorado’s real estate market. The state’s most populous cities, including Denver, Colorado Springs, and Boulder, may have garnered the most attention, but Southwest Colorado’s charming towns have seen similar trends. Durango’s eclectic culture and college lifestyle have helped boost its appeal as one of the best places to live in the state. Telluride, Pagosa Springs, Cortez, and Mancos are also rising stars.
Southwest Colorado by the Numbers
Like in the rest of the state, keeping up with demand remains the challenge in Southwest Colorado’s real estate market. The combination of wide-open spaces and charming main streets in town has attracted a slew of retirees and remote workers who love the feeling of being in the region and decided to put down roots, increasing demand for housing that was already at its limits.
Market data from the first quarter of 2022 reveals some interesting themes in the region. Demand is not slowing down despite rising interest rates. On average across Southwest Colorado, single-family homes are selling faster, staying on the market between 44 and 105 days. Townhouses and condos remain on the market for slightly more than a month in some counties. Buyers want what sellers are willing to give.
The number of properties sold in the area has decreased year over year. In Archuleta County (home to Pagosa Springs), sold listings are down 32% for single-family homes and 5% for townhomes and condos compared to this same time last year. La Plata County saw a similar drop of 14% for single-family sold listings. However, this doesn’t suggest a shift in the market. Sellers still have the upper hand. The median sales price rose again, going up nearly 30% in Archuleta County, and more than 27% in La Plata County.
Rising sale prices raise additional concerns for people in the area. Wages have not kept up with housing costs, leaving workers scrambling to find affordable housing. This can ultimately affect businesses and residents who rely on these workers to provide valuable services. However, these concerns don’t appear to have much of an effect on the local markets. They are still highly competitive and will remain so until inventory catches up with demand or interest rates rise high enough to slow down mortgage applications.
Through May 2022
Single-Family Homes/
Townhomes and Condos
Through May 2022
Through May 2022
$650,000/$289,000
La Plata County:
$729,900/$453,250
Montezuma County:
$366,500/$225,000
La Plata County: 533
Montezuma County: 209
La Plata County: 389
Montezuma County: 171
Through May 2022
Single-Family Homes/
Townhomes and Condos
$650,000/$289,000
La Plata County:
$729,900/$453,250
Montezuma County:
$366,500/$225,000
Through May 2022
La Plata County: 533
Montezuma County: 209
Through May 2022
La Plata County: 389
Montezuma County: 171
Although we are through the full-blown COVID-19 pandemic phase, we’re still dealing with the many market factors it exacerbated. Workplaces across the country have reopened, but a surprising number of people are choosing to work remotely when given the option. Nearly 60% of employees have not returned to the office, a more than 20% increase in the number of remote workers the country had before the pandemic. This creates more freedom for workers to choose where they want to live, even if it means home is across state lines from the office. As a result, inventory and affordability continue to affect Southwest Colorado’s real estate market.
- Inventory
- Affordability
- Population Shifts
- Interest Rates
If you’re planning to buy or sell a home in Southwest Colorado, you have plenty of opportunities in the current market. Interest in the area is still up and showing no signs of fading in the near future. Buyers are still buying across the region, although we still have a lack of inventory to meet all of the demand.
Buyers who were unable to buy a home at the peak will likely find themselves with less competition than they had before. This increases their odds of getting an accepted offer. Townhomes and condos, in particular, offer some interesting opportunities for buyers. They are staying on the market longer, which gives buyers some leverage with sellers looking to sell.
Sellers are still in a solid position to sell their properties as long as they are priced accurately. With less competition, they may not see the same number of bidding wars or buyers willing to pay more than the asking price. Going into peak selling season, the number of available homes should also increase and give buyers more leverage.
