T
he housing market in the Wet Mountain Valley region has seen a slowdown in sales volume, but prices remain near record highs. This trend is not unique to the area, as many economic experts predicted that rising interest rates would lead to a decline in real estate prices nationwide. However, despite the increased borrowing costs, prices have held steady.

    The local market's dynamics are distinct from other areas, with buyers often using cash or alternative financing methods. This reduces the impact of high lending rates on transactions. Additionally, the region's appeal as a retirement destination and vacation spot contributes to its relative affordability compared to neighboring Salida and other parts of the American West.

    Builders and contractors report strong demand for their services, with wait times for experienced tradespeople running several years. The Town of Silver Cliff has seen significant development activity in recent months, driven by the lifting of a moratorium on building due to infrastructure upgrades.

    However, rising insurance costs pose a significant challenge to the housing market. Average homeowners' premiums have increased by 57.9% since 2019, with hail damage and natural disasters driving up repair costs. Some insurance companies are reevaluating their policies or leaving the state altogether, leading to concerns about access to coverage.

    To address this issue, Colorado is launching a new homeowners' insurance product called the Fair Plan in 2025. While prices for these policies will be higher than industry averages, they will provide an option for homes that have been denied coverage by other companies at least three times.