Eagle County Real Estate Market Report: Markets stabilize amidst continued buyer demand
On Real Estate
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Unlike the steady (frantic) pace of 2021, this year’s real estate market experienced some significant changes. While the first quarter was a follow-through of the hyper-activity our markets saw in 2020/2021, inflation and interest rate increases changed the pace of sales beginning in June. As a result, Eagle County’s residential real estate market declined by about 24% in dollar volume and 30% in units year-over-year. Much of the unit decline was in the local and bedroom communities that are historically more interest rate sensitive.
The rapid changes are beginning to settle down. Interest rates have stabilized, and expectations are that they may trend down in 2023. Buyer activity remains elevated, yet buyers are increasingly more critical about pricing and the condition of properties and are either holding off until the right home comes along or adjusting offers to be more in line with market value. Pricing is a critical element for sellers in today’s market. Having the most up-to-date comparable sales and pricing homes for sale accordingly, in addition to having a home in the best condition, will yield the most successful result.
Luxury resort market
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Alida Zwaan, an associate broker with Berkshire Hathaway HomeServices Colorado Properties, notes that while the luxury market has flattened, it is still strong for right-priced homes at market value. “I have written two offers recently for full price that went up against multiple offers,” Zwaan said. “Some buyers are holding off, thinking the market will go down. But if they find the right home that fits their needs, they are willing to pay a fair price. The homes that aren’t selling are the ones that are priced too high, based on location and/or condition.”
Downvalley market
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For both the luxury and downvalley markets, the biggest challenges are inventory and appropriate pricing. Chad Brasington, also an associate broker for Berkshire Hathaway HomeServices Colorado Properties, notes that for the local market, a dramatic shift back to the norm is something every local buyer and seller truly wants and needs. “We can’t sustain artificially inflated home prices when it comes to the most important thing to every family that lives here…their home,” Brasington said.
Looking ahead, Brasington notes that for midvalley homes catering to locals, it’s important to remember there is a buying hiatus between Labor Day and Opening Day, in late November/early December.
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“If you are not under contract by the end of August, it is unlikely you will see anything until the second homeowners roll back into town in early December. When pricing a home, sellers need to flush out the memory of 2021 and early 2022 and shift their mindset to the more stable years of 2018 and 2019. It’s about market value not what you think your home is worth,” Brasington said.
Overall, there is a positive outlook for the new year. Today, as much as ever, the market is responding in line with macro factors that are influencing behavior. Neighborhoods throughout the county are adjusting differently based on buyer demand and circumstances (e.g., cash vs. financing), but with great snow, mountains fully operational, and elevated inventory, there is great excitement for a positive winter season and beyond.
Michael Slevin is the president and owner of Berkshire Hathaway HomeServices Colorado Properties, started by his father, John, 52 years ago. The company has grown to 12 offices in 10 communities, spanning from Summit and Eagle Counties to the Western Slope.
