Jonathan Huffman/Summit Multimedia
Why so many people are interested in purchasing a second home in Summit County isn’t a mystery. The area boasts plenty of recreational opportunities year-round, the scenery is impeccable and it’s the first big stop along Interstate 70 that boasts four ski resorts all in one county.
These big perks combined with the pandemic’s boost in remote working has created quite the hot real estate market in Summit County all year long, and especially so for the luxury market.
Jan Leopold, broker for Re/Max Properties of the Summit, said in 2020, there was about twice as much inventory on the market than there is today and compared to 2019, there was nearly 4.5 times as much as there is today. The low amount of inventory creates a strong seller’s market and Leopold said many of these buyers are making cash offers.
Leopold said according to data from the Summit Association of Realtors, there were about 110 units on the market as of mid-November, and 63 of these were considered to be luxury units or units priced at $1 million or more. This means that most of the inventory that is available is considered luxury.
In total, sales for luxury units were the strongest in the third quarter of 2021, according to Land Title Guarantee Company’s monthly reports. The third quarter of the year raked in roughly $499,084,304 in gross volume for sales priced at $1 million or more. Second quarter was close behind at $419,376,361 in gross sales. First quarter lagged behind at $240,619,600.
Land Title’s reports show that Breckenridge consistently has the highest volume in transactions. However, Marc Warshawsky, realtor for nationwide real estate firm Compass, Inc., said Silverthorne is usually a close second, followed by Frisco. Warshawsky said he believes Silverthorne’s strong market is due not only to the town’s growth, but also it’s prime location in the county.
“It’s very desirable from a lot of perspectives,” Warshawsky said. “Silverthorne has a lot of great views and Silverthorne is right off of (Interstate) 70. It is the closest, easiest access to Denver, to the airport. It’s the first town you arrive to and then if you’re not living in Breckenridge, Silverthorne is actually the most conveniently located to everything else.”
So far this year, Warshawsky’s biggest sale was a $2.8 million home with five bedrooms and 5.5 bathrooms located in the Highlands at Breckenridge. Warshawsky said most of his buyers are looking for homes in the $1 million to $3 million range and that most are not moving to the county full-time, but are rather looking for a vacation home. Like Leopold, most of his buyers are coming from Texas, Illinois and Florida.
Leopold said about half her business is in luxury real estate. Her highest sale so far this year was a $2.7 million home with four bedrooms and 3.5 bathrooms located in Breckenridge. She’s been selling in the county’s real estate market for over 20 years and said as of late, she’s seeing a change in the kinds of homes most desired.
“Big is back. … We used to have the bigger homes before the Great Recession and then people started looking toward smaller homes and building smaller homes,” Leopold said “So big is back with the open floor plans designed for multigenerational gatherings, a compound that their extended family can come to for vacation.”
Like the more affordable residential real estate market, buyers might have to exercise patience if they are looking for a specific piece of property. Not only is there not as much inventory on the market, but according to the Summit Realtors Association, the average number of days a unit was on the market until it sold in Breckenridge for October was 31, which is down 72% compared to the same month last year. The association reported last year that the average number of days a unit was on the market until it sold was 112.
Only time will tell if the luxury real estate market will balance out in the future.
