Mix and Pricing Help August Sales Numbers

Unit sales of Summit County residential properties fell in August but rising prices and a shift towards the higher end of the market generated a strong gain in dollar volume. For the month, transactions were down 3.5 percent from a year ago at 272. Following the normal seasonal pattern, however they were up 8 percent from July.
In contrast dollar volume rose a robust 22.3 percent to $170.2 million. That also reflected a 15 percent gain from the prior month.
Two factors contributed to the dichotomy between unit and dollar comparisons. First was a shift in mix. In the year ago period, properties under $500,000 were 58 percent of all sales. This August the number was less than 48 percent. Last August, more than 90 percent of sales were under $1 million. The month this year saw only 83 percent below that number.
The second reason for the difference was the effect of a substantial rise in pricing. Most major areas saw strong gains in year to date average price per square foot over last year. In Breckenridge, the number rose to 21 percent to $495. Blue River was up 32 percent to $353. Silverthorne gained 18 percent at $355. Copper and Keystone both rose 17 percent to $481 and $415 respectively. Only Frisco among the major areas, failed to make double digit gains rising 4 percent to $403.
The mix and price rises have also influenced residential average selling prices (ASPs). The year-to-date ASP for single family homes in the county is up 17 percent to $1,096,406. The multi-family ASP is up 18.8 percent to $460,631
The year to date pattern for unit and dollar volume was similar to August. Dollars rose to $981.4 million, an increase of 26 percent. Unit volume is up only 8 percent to 1,577. Once again mix and pricing were the major contributors to the difference.