Hello Everyone!
As we are still settling into a new year and a new presidential administration and its policies, it’s challenging to predict what the future may hold for the real estate market. Still, I want to keep you updated on some of the real estate trends we’re seeing — some of which will impact the options available to your clients when deciding whether to sell their house or refinance for a divorce equity buyout.
Mortgage rates are settling for now. Mortgage rates fluctuated significantly in 2024, averaging around 6.7% for the year, with a brief dip in the fall. While some experts initially predicted a decline in 2025, others advise against early predictions. The overall consensus is that rates will likely remain stable until we get more insight into the economic impact of the new administration’s policies.
The change in insurance policies and coverage will reshape the Rocky Mountain real estate market. If you own a home or car in Colorado, you know that insurance has more than doubled in the last few years. Some carriers are even dropping insurance coverage in remote areas of the state, citing carrier losses and depleted reserves and the high risk of fire as excuses. In my own experience in both Summit and Eagle counties, multi-unit HOAs have also been forced to double their homeowner dues almost overnight due to rising coverage rates, or they are dropped altogether. Buyers can’t get loan approval without HOA Umbrella insurance coverage, even if they can get their own for their unit, and those Buyers are forced to walk from the purchase. Colorado, and the country, will need state lawmakers to get involved immediately to stem the rising tide before we become
Days on market (DOM) is also rising. New listings are taking longer to sell throughout Vail and Summit. In January, the average time a home spent on the market was 57 days. This is an increase of twenty eight days (49%) compared to last year. Despite this, time on market remains less than the average January during the (pre-pandemic) 2015-2019 period.
Local Trend in Prices
Currently, our market is seeing a downward trend.
MEDIAN PRICE COMPARABLE:
January 2024 VS. January 2025 Year-to-Year Change
Eagle County
$1,500,000
$1,382,000
-8.2%
Summit County
$1,071,025
$1,012,500
-5.6%
Lake County
$410,000
$329,211
-19.8%
Routt County
$827,500
$679,000
-17.89%
Pricing Note: House values can fluctuate through the seasons. Winter is a different market than the Summer depending on location, i.e. ski season second and third home sales vs. valley sales. By December every year our DOM is highest, and so is the average price per square foot. So in order to get an accurate reading as to whether or not prices have fallen or risen, we use the “year over year” barometer.
Local Days on Market (DOM)
January 2024 VS. January 2025
Eagle County
29
57
+ 51%
Summit County
62
77
+19.5%
Lake County
83
98
+15.4%
Routt County
47
77
+39%
Days on Market (“DOM”) Note: This metric tells us how long it takes for homes to sell. This number is largely driven by supply and demand. An uptick in interest rates can cause DOM to increase; a drop in unemployment can cause DOM to decrease. All sorts of economic factors can affect this number, and ultimately, DOM affects pricing. When there are low days on market, prices go up; when DOM increases, prices go down. DOM in the Rockies is highly dependent on the luxury home market and the season and the 6-month average; December is our highest DOM average and May is our second highest, all based on how long those 5 Million + homes sit after they are listed at the beginning of ski season vs beginning of spring.
Market conditions are constantly fluctuating. Values that exceed 90 days are likely no longer relevant. If you’d like an updated valuation, feel free to give me a call directly at 970-445-8144 or email me at this address.
All my best, and check out the NEW HomeIntel Report system on my website for a pretty accurate evaluation of your home!