This last year brought an unexpected increase in real estate transactions and eagerness in buyers that created a scenario for sellers to get multiple offers the day their house hit the market. In larger metro areas where inventory is down and home prices are on the rise we are seeing folks who would be interested in those markets start to look elsewhere. There is an influx in metro surrounding areas where there is more inventory at a lower cost, calling these the “spillover markets”.
An example of a booming spillover market is a town in California called Stockton, which is a city of about 310,000 people that’s about 72 miles east of San Francisco’s East Bay area. The Stockton metro also encompasses Lodi, a smaller town of about 67,000. “What we’ve been seeing is, inventory is super low,” says Jerry Patterson, a Realtor® with Cornerstone Real Estate Group in Stockton. “In Lodi, it’s down 56% compared with this time last year.” Half of all homes in Stockton and Lodi were selling in fewer than 37 days in January, 22 days faster than in January 2020. That’s also 39 days faster than the norm in the rest of the country, they are seeing buyers flooding in from the Bay Area armed with cash ready to make offers. Colorado Springs is also becoming a spillover market to Denver, with the median listing price now sitting at $532,000 and 46 median days on the market.
What will this look like for the Durango area? Within the last few years we have seen the numbers of homes sold rise in the Bayfield area. Buyers may start to inquire in areas such as Dolores, Cortez, and Pagosa Springs, creating spillover markets in our area. If you have any questions about spillover markets and where may be a good area to purchase in we are happy to help guide you in the right direction.