Vail Valley Real Estate Market Trends Report: Heightened interest amidst uncertainty
On Real Estate
Clearly, the first half of 2020 has brought noticeable market shifts in real estate both in the Vail Valley as well as worldwide. While every market experienced a pause due to the onset of the COVID-19 pandemic, what has been unexpected is the amount of activity and price point increases throughout the Vail Valley since restrictions were eased.
For June alone, new listings were up 9.06% from last year. Both median sales and list prices are also up, 12.22% and 13.64%, respectively. While closings were down significantly, as expected, current inventory and buyer interest indicate much of that will be made up in the next two quarters. Average days on the market have gone from 217 in June 2019 to 81 days in 2020, which support the heightened interest and activity levels noted above.
The biggest issue that remains, dating back to last year, is lack of inventory, though recent rebounds in listings coming to market are helping to close that gap and are expected to continue throughout the rest of the year. Buyer activity is the highest the valley has seen since before the recession and there is tangible evidence that buyers are seeking out the valley as a place where they can continue their work remotely and enjoy all the area has to offer.
Another important point is the Vail Valley is really comprised of several markets, each with its own special nuances, opportunities and challenges. To get a better sense of what these trends mean for buyers and sellers, Berkshire Hathaway HomeServices Colorado Properties’ associate brokers Larry Agneberg (Vail resort market) and Thalia Leiva (downvalley/Eagle to Gypsum) are here provide additional insights.
Vail Valley resort market
What it means for buyers: According to Agneberg, a 37-year Vail Valley real estate veteran and top selling broker associate, more properties continue to come to market daily but like the entire valley, can get snapped up quickly. Buyers should be knowledgeable about the current inventory and have a good feel for values.
When the right property appears, be ready to look at the property quickly and make an offer. f planning to finance, being ready also means having pre-approvals in place and understanding the lender’s parameters. A key insider tip is a local broker can help set listing alerts for properties that fit each buyer’s parameters. With interest rates at historic lows, it’s a great time to buy.
What it means for sellers: Given current buyer demand, there is some wiggle room to price homes slightly above market value. That being said, the pricing needs to be based on realistic comps that factor in location, views and condition.
Ultimately, the buyers will stipulate what the home is worth.If, after several showings, there are no offers, a price adjustment may be in order. It is a great time to sell as buyer interest continues to grow. However, there are still instances of homes being on the market for a year, or longer, so working with a local broker who can help you navigate pricing and market value can help mitigate potential momentum losses. For more information on the Vail/resort market, contact Agneberg at 970-376-7100 or email@example.com.
Downvalley: Eagle to Gypsum
What it means for buyers: A downvalley market specialist, Leiva states that with interest rates being the lowest they have been in almost 50 years, buyers are now able to afford more than they would have previously. Obtaining pre-approvals on a loan can give a buyer a realistic price range of homes from which to choose.
The market is moving incredibly fast and homes are being sold in the matter of days. It is important to work with a local agent who can guide you through this process and notify you of any new listings, often before they even hit the MLS.
What it means for sellers: Be prepared. A lot of time and dedication comes with the sale of a home, and local brokers can be a valuable asset as they are market and buyer savvy. There is a lot of demand and not enough supply, which is often resulting in more than one offer being placed on the same property. While multiple offers sounds great, each offer can come with its own stipulations so be sure you fully understand the parameters for each offer. The current inventory shortage, coupled with heightened buyer activity and historically low interest rates, makes this an ideal time for sellers to list their home. To learn more, contact Leiva at 970-306-2013 or firstname.lastname@example.org.
For additional market trends and information, including Berkshire Hathaway HomeServices Colorado Properties offices, brokers and listings, visit http://www.bhhscoloradoproperties.com or call 970-329-2482.
Michael Slevin is the president of Berkshire Hathaway HomeServices Colorado Properties.