Colorado is among the states seeing the biggest vacation home boost in the U.S. as the ongoing real estate boom thrives despite the pandemic.
Nationwide 68 percent of vacation homes sold in less than a month in September, according to the Realtors® Confidence Index Survey (RCI). That’s more than twice the historical rate of about 30 percent of homes selling that quickly, says Gay Cororaton, senior economist and director of housing and commercial research at the National Association of Realtors® (NAR).
She added that working from home spurred the demand for vacation homes, as many who can work remotely are doing so in their second or vacation homes. “Properties are moving fast,” Cororaton said of the national trend at the recent virtual 2020 Realtors® Conference and Expo.
Alongside sales increases, prices are rising dramatically. NAR reports a third quarter increase of 32 percent year over year.
In vacation-home counties – those where seasonal housing accounts for at least 20 percent of stock – sales increased 48 percent on average year over year in quarter three. Overall 81 percent of vacation-home counties saw a year-over-year sales increase.
Areas with the biggest boosts are in the Southwest, mostly in Colorado, Arizona, New Mexico, and Utah; the far Northeast; and the Upper Midwest, including Minnesota, Wisconsin and Michigan.
Colorado house hunters continue to be active in the primary residence market as well, “gobbling up” a record number of homes in September, according to the Colorado Association of Realtors (CAR).
September sales topped the past five years with 13,039 sold listings, while active listings dropped more than 54 percent to 9,804 homes statewide compared to a year ago. The median sales price rose around 12 percent statewide to $450,000 from a year prior, reports CAR.
In addition, the pace of buying is on the rise, going against the typical trend of sales decreasing as fall arrives. October homes sold 13 days faster than a year ago, according to Realtor.com®.
This is the first time since 2011 that sales have accelerated from September to October, which signals that buyers continue to “face tough competition in this anything but normal year,” according to Realtor.com’s Monthly Housing Trends Report.
For more information see magazine.realtor/daily-news/2020/11/09/buying-frenzy-heats-up-in-second-home-market and https://magazine.realtor/daily-news/2020/11/06/buyers-under-pressure-as-homes-continue-to-sell-quickly.
By Tom Kalinski. Tom is the broker/owner of RE/MAX of Boulder, the local residential real estate company he established in 1977. He was inducted into Boulder County’s Business Hall of Fame in 2016 and has a 40-year background in commercial
and residential real estate. For questions, e-mail Tom at email@example.com, call 303.441.5620 or visit boulderco.com.