Download September 2020 Market Stats
Record Land Sales: All market indicators for land sales between $100,000 and $1,000,000, including agriculture and residential land, are up year over year, including number of transactions, sold prices and sales volume.
Why the change?
It is my opinion the uptick in land purchases could be due to a few causes:
1) Inventory. There is only 4 weeks of inventory for homes in the Denver metro area. There are not enough homes on the market and Buyers are purchasing land to build their new homes.
2) Covid & Work-From-Home. As more companies allow employees to work from home, many Buyers are moving out of urban markets into suburbs and rural areas.
3) Market & Election Concerns. Investors could be buying land in lieu of cash holdings.
Additional Data: The Average Original List Price for vacant land in Douglas County was $388,067 with a sales price of $372,408. This equates to a 6% price reduction from the original list price. The average Days on Market was 303 days with a median of 118 days. The longest days on market was 1514 days and the shortest 0 days.
What Buyers Need to Know Inventory is down and prices are increasing. Expect the same for October, 2020. Be prepared to make an offer. Speak with your lenders now or have your proof of funds ready for Seller review.
What Sellers Need to Know Buyers are purchasing land in Douglas County at record rates. Land does not sell as quickly homes. If priced right, you should see offers in the first 30 days. If over priced, expect longer days on the market.