We are excited to release our latest Market Report, analyzing the 3rd Quarter performance of 2022 compared to the same time frame during 2021. The following is a short overview of the current market in Southwest Colorado, highlighting a few notable themes. Is the Southwest Colorado real estate market moving in favor of buyers toward the end of 2022? As the Southwest Colorado Housing Market continues to evolve, the market stats for the 3rd Quarter indicate that there are still areas in flux. However, all significant statistical indicators point to a market stabilization.
Like many other markets across the U.S., the Southwest Colorado housing market has experienced rapid appreciation and low inventory. But as we move into the 4th Quarter and mortgage rates continue to rise, the local market is seeing a slight increase in inventory in addition to price reductions. La Plata County's residential market saw 15% fewer homes closed than the previous year during the 3rd Quarter of 2021. As a result, the median sales price for residential listings in La Plata County in the 3rd Quarter was $585,000, up by 6.6%, decreasing from the 2nd Quarter median sales price of $625,000. Active residential listings in La Plata County increased by 40%, in addition to an increase in Days On Market, indicating that the market is moving towards a more balanced buyers and sellers market.
The luxury real estate market in Southwest Colorado, defined as properties priced at or over $1 million, continues to increase as the median sales price for homes over $1 million is 13.5% higher. There was a 27% increase in properties sold over $1 million in La Plata County compared to the 3rd Quarter of 2021—with an average median sales price of $1,507,500. Additionally, based on a rolling three months of data, the active inventory for homes listed at or over $1 million increased by 36.5%.
Colorado's communities offer plenty of opportunities for buyers and sellers to make prosperous moves in the housing market. Whether you're interested in buying or selling a home, understanding the current market condition and working with an experienced local broker are crucial components in the current market conditions and can help guide your decisions and real estate strategy.