The real estate market in Custer County continues to slow, but for a second year in a row, despite a decline in sales volume, prices have remained steady. For local real estate offices, it was not unexpected that a slowdown in property sales for the first three quarters of the year occurred, as interÂest rates have remained elevated, slowing mortgage demand in the region. Yet, despite the lack of demand, cash buyers have kept some real estate transactions moving forward and have helped prices remain stable.
Information in the accompanying chart and data, proÂvided by the Custer County Assessorâs Office, show that the total volume of real estate transactions has fallen by 24% compared to the same period in 2024. This marks a sales volume last seen 11 years ago in 2014. The peak of sales came in the banner year of 2021, during the height of the pandemic, as record-low interest rates on 30-year mortgages allowed people to purchase existing homes at high prices while still maintaining affordable monthly payments.
After 2021, the Federal Reserve Bank of the United States started to raise interest rates in an attempt to combat rising inflation in the United States. Many economists preÂdicted that the sharp increase in mortgage interest rates would lower the value of existing real estate. However, real estate and home prices nationwide have stabilized and, so far, have not fallen.
Along Coloradoâs Front Range, real estate prices for existing homes have fallen about 7%, according to Lance Lambert, owner of the real estate-tracking software ResiÂClub. Custer County had fared much better with prices rising by 1.8% over the past year.
Talking with several of the Tribuneâs real estate advertisÂers, all stated that they had seen an uptick in interest as long-term interest rates have finally started to fall once again. The Wall Street Journal shows 30-year rates currently at 6.24% down from the high of 7.42% last year.
â Jordan Hedberg
