Havard: Vail Valley market shows dramatic increase in year-over-year average prices (column)
As the Colorado real estate market continues to evolve, a report released Friday, Jan. 19, by LIV Sotheby’s International Realty demonstrated signs of growth and significant average price increases throughout the 2017 Vail Valley real estate market, encompassing Edwards, Vail and Beaver Creek.
Not only did the year’s 10-year low in inventory result in continued upward pressure on desirable properties, contributing to the increased number of single-family home sales throughout the Vail Valley region, but many domestic and international buyers continued to invest in Vail Valley real estate, based on their confidence in the local economy and desire to live in areas rich with year-round recreation.
“The Vail Valley real estate market performed at a very competitive pace in 2017, with the total number of sales recorded in Eagle County exceeding $2 billion for the first time since 2008,” said Dan Fitchett, managing broker with LIV Sotheby’s International Realty, Vail Valley.
“This has been accomplished with steady sales volume growth year-over-year. It is exciting to see the market reach levels prior to the real estate adjustment in the late 2000s. With the Vail Valley continuously gaining notoriety as an excellent place to invest, especially internationally, the market is positioned for growth in 2018.”
Comparing January through December 2017 statistics to that of 2016 for single-family homes and attached dwellings in Eagle County, LIV Sotheby’s International Realty’s year-end Vail Valley Micro Market Report indicated competitive conditions in the marketplace.
The number of single-family homes sold rose 5.8 percent year-over-year, with average days on market decreasing 9.5 percent, from 137 days in 2016 to 124 days in 2017, an excellent time frame for a resort market where homes typically stay on the market longer. The report also indicated an 11.8 percent increase in average sales price year-over-year, demonstrating consumers’ willingness to pay more for homes they truly desire, especially at the higher end of the market.
An important statistic to note is that private sales sometimes take place off-market, outside of the Multiple Listing Service, or MLS, which can influence the market. In 2017, two significant off-market sales took place: the sale of 332 Mill Creek Circle, which sold in August for $14.6 million, followed by the $28.7 million sale of 395 Mill Creek Circle, which took place just days later.
“Combined, these two off-market sales totaled over $40 million, a record-breaking price that serves as a testament to the strength of the Vail Valley real estate market,” said Barbara Scrivens, LIV Sotheby’s International Realty broker.
Highlights from the Vail Valley Micro Market Report include Bachelor Gulch’s average price of all properties rising 34.3 percent year-over-year and Vail Village’s average price for all properties rising 44.2 percent year-over-year. Additionally, Beaver Creek’s average price of single-family homes rose 38.5 percent from 2016.
“I believe that 2018 is going to be a banner year in Vail Valley real estate,” said Malia Nobrega, LIV Sotheby’s International Realty broker. “Today’s buyer will typically not pay outrageous premiums but is willing to accept a steady incline in property values, particularly in premiere locations and especially if the offering is recently built or remodeled.”
For more information, contact Dan Fitchett, managing broker with LIV Sotheby’s International Realty, Vail Valley, at 970-471-1208.
Brittanny Havard is public relations manager for LIV Sotheby’s International Realty. LIV Sotheby’s International Realty compiles monthly, quarterly and year-end reports to help consumers make better real estate decisions, whether purchasing or selling a home.