In this article, I’m taking a closer look at some statistics with regards to the residential real estate in Erie, Colorado because that is where I live and my kids go to school. So, the Erie residential real estate market is near and dear to my heart. The spring selling season is starting to heat up as the number of active listings went from the mid-80s over the winter months to 111 as of the writing of this article.
The 111 active listings for Erie in REColorado (MLS) range from $2.9 million to $264,900 for a 2 bedroom, 1 bathroom condominium. New construction accounts for 39 of these listings (35%), which is indicative of the growth of Erie and the demand for new homes. Prices in Erie seem to be on the rise too. The average list price for homes in Erie is $619,140, so far in March 2019.
I also find it useful to look at some statistics with regards to the Erie real estate market over a longer period of time. Erie’s rapid growth makes historical comparisons over a number of years difficult and a little like comparing apples to oranges. Nonetheless, I think this information is useful for buyers and sellers in Erie so they can get a feel for trends in the local real estate market.
Median Sales Price (6 months)
The median sales price in February 2019 was actually down ($491,470) compared to the last several months as shown on the graph below. However, these medians can be skewed by a couple sales at lower than typical prices, and are likely explained by the annual seasonal slump over the winter months. The median sales price for the last six months in Erie was $506,969.
Median List Price (6 months)
The median list price is the other half of the picture. As to list price, the six month trend seems to support a conclusion that list prices in Erie are on the rise. The median list price in February 2019 ($550,000) actually exceeded the list price in September 2018 ($539,950) which was the tail end of the seasonal selling market. It’ll be interesting to see if this trend holds true to form and list prices (and sales prices) continue to increase in the more active spring and summer market.
Original Price to Sales Price Ratio (12 months)
Another metric that buyers and sellers find useful and important in the residential real estate transaction process is the ratio at which homes sell compared to their list price. In other words, the percentage of the list price at which homes actually sell. In the residential real estate market in Erie for 2018, that ratio was 97.9% In other words, homes in Erie are selling for very close to list price, so a “low ball” offer probably won’t get you a home in the present market conditions.
Days on Market (12 months)
The final statistic that I will be examining in this article is the average days on market (DOM). This tells sellers about how long they can expect for a typical home to be on the market before it goes under contract with a buyer. At the peak of the market last year, some homes were going under contract in a matter of hours. One of my listings in Vista Ridge went under contract based upon the “coming soon” sign before the professionally photography could be completed and the home could be entered into the MLS. Over the winter months, the days on market unsurprisingly increased.
For 2018, the twelve month average for days on market in Erie was 22.3 days. Interestingly, the average days on market for the first half of 2018 was 17.5 days and the average days on market for the second half of 2018 was 27.2 days. It may be that as list prices and sales prices are increasing in Erie, so too are the average days on market. I will be curious to see the average days on market for Erie during the 2019 spring and summer markets.
Stay tuned for more market updates and statistics on the Erie residential real estate market. If you have a specific statistic or questions about the Erie real estate market for which you have questions, don’t hesitate to ask.