Luxury real estate market improving
DENVER — The number of homes sold for more than $1 million in the resort markets of Eagle and Summit County showed signs of increase according to a first-quarter, year-over-year market report by LIV Sotheby’s International Realty.
In general, resort communities throughout Colorado and around the world are prone to unique luxury markets. Often found undesirable, slightly less accessible locations than national mainstream markets, resort markets tend to have a greater density of luxury offerings as higher net worth individuals are often drawn to them based on their exclusivity and proximity to world-class activities.
Seasonality, location and employment opportunities drive the inventory of affordable homes down and most pricing up within resort communities. Colorado’s strong economy, combined with homeowner equity and rate of sale continuing to climb, indicate that the 2015 luxury market is off to a solid start.
“The increase in prices and the reduction in the days on market is due to limited construction starts over the last five or six years,” said Dan L. Fitchett Jr., managing broker of LIV Sotheby’s International Realty, Vail Valley. “With the stronger economy, current buyers are looking to use and own the property over a longer period of time. Many of the buyers in the past were speculators who drove the prices up prior to the decline in 2008. The market will continue to stabilize as values continue to increase, but at a controlled rate. Since the resort areas tend to follow the metropolitan markets, if the greater Denver market continues to grow, it will bode well for Colorado resorts.”
In Eagle County, 86 homes priced at more than $1 million sold in the first quarter of 2015, up 17.8 percent over the same period in 2014, according to LIV Sotheby’s International Realty’s comparison, based on information from Vail Board of Realtors Multiple Listing Service. Average days on the market decreased slightly from 359 days in the first quarter of 2014 to 302 days in the same period of 2015, a 15.9 percent decrease.
LIV Sotheby’s International Realty compiles a quarterly luxury market report to help consumers make better real estate decisions, whether purchasing or selling a home. For more information, go to http://www.coloradomarketreports.com or http://www.livsothebysrealty.com.