The spring home buying season is underway in Montezuma County, and after several years of rapid growth, the local housing market is beginning to settle into a slower pace.
There are currently about 160 homes on the market, according to local real estate data, and properties are taking longer to sell—often more than four months. That’s a shift from the height of the pandemic housing boom, when homes were moving quickly and buyers often faced intense competition.
Local realtor Leigh Holmes says the change is largely driven by higher interest rates, which are making buyers more cautious and limiting how much they can afford.
“Buyers are able to throw their weight around a little more,” Holmes said. “If you don’t do these repairs, I’m walking.”
That dynamic is giving buyers more time to consider their options and negotiate on price or repairs—something that was far less common just a few years ago.
Holmes says the makeup of buyers has also shifted. While the pandemic years brought an influx of out-of-state buyers, most recent sales are happening closer to home.
“Mainly, it’s people reshuffling within Montezuma County itself,” Holmes said.
At the same time, affordability remains a challenge.
High construction and labor costs are limiting new home building, making it difficult to expand the supply of lower-cost housing. Holmes says in many cases, it’s still more expensive to build a new home than to buy an existing one.
“You try to put a house exactly like it next door… it’s going to cost more to build,” he said.
As a result, demand remains strong for existing homes, particularly in the mid-range market that is more accessible to local workers.
While the pace of sales has slowed, Holmes says the market is not stagnant—just more balanced than in recent years.
“It’s more like a more normal… back to pre-pandemic,” he said.
Even so, for many prospective buyers in the region, finding an affordable home remains a challenge.
