Eagle County real estate: Market shift brings new hope for buyers
On real estate
Buyers looking for homes in Eagle County have newfound hope with the recent summer selling season market shift. Active residential listings have more than doubled over the past two months, from 150 to 376, with 75 new listings in the past week. Buyers now have more options, which typically means less competition, though homes that are priced right, in the right condition, and neighborhoods, are still seeing multiple offers.
While the rise in interest rates has some concerned, it’s important to keep in mind that even at 5.5%, we’re at the national average. This number got skewed with the artificially low drop in rates during the pandemic, so this is more of a market correction. The good news is there are contract negotiation options to lower this rate.
Buyers can also work with their broker and ask sellers to assist in buying down the mortgage rate as long as their lender will allow seller concessions. This process allows buyers to get down to the 4% range and away from the 5.75-6% rates currently being quoted from lenders. This can save the buyer a significant amount of money over the course of the loan.
Interest rates seem to have less impact on luxury/resort market buyers. These buyers still have access to cash and can do better investing in real estate than having that cash sit in a bank account. Cash offers are still king. Some buyers continue to make cash offers knowing they can get their loans prior to closing on the property.
We are still a little too close to know for certain, but there are indicators that the top of the market will prove to have been in March or April, so sellers must be careful about their pricing. Shooting for the moon on pricing right now may cost sellers time and money in the long run. Yes, special, and unique properties will still, and always, garner the highest prices, even in this changing market. However, if the property is similar to the one down the street, the idea of pricing the subject home 10% higher than the last sale may get sellers in trouble.
What it means for sellers
While it’s still a little early to know if we have hit the height of the market, we’re not likely to see the kind of increases we have experienced over the past two years. The shift is really more neighborhood and property-dependent. When a property shows up at the right price, sellers are still seeing multiple offers. Buyers are also gravitating toward properties that are updated and move-in ready versus taking on the construction, supply chain delays, and costs associated with a remodel.
Gone are the days of “it doesn’t matter what condition your home is in, it will sell.” If there are deferred maintenance items with your home, it’s important these get addressed. They will come up in inspections and with more options available, buyers have more negotiating power.
With buyers having more choices, sellers need to be cognizant of price relative to condition, location, and market value. The smart seller will work with their broker to price it right and let the buyers dictate top market value. If there are multiple price reductions within a given segment of the market, buyers are more likely to wait and watch sellers negotiate against themselves with price reductions. The seller that gets to the appropriate price first, in this market, will sell before the others.
Rick Messmer and Larry Agneberg are 20- and 40-year Vail Valley residents and award-winning broker associates with locally owned Berkshire Hathaway HomeServices Colorado Properties. Their achievements have them both earning the Chairman’s Circle Diamond Award, bestowed upon the top half of 1% of all broker associates nationwide. Messmer specializes in downvalley real estate including serving as managing broker for the Eagle office and partner in the Messmer Group. Agneberg is with the company’s Vail-Lionshead office, specializing in the resort/luxury market. They can be reached at firstname.lastname@example.org or 970-376-0041 or email@example.com or 970-376-7100.