Q3 Market Report: Active Vail Valley market boding well for buyers and sellers
On Real Estate
Activity and strong buyer interest best describe the Vail Valley’s residential real estate market in the third quarter.
The first half of the year showed a 7% decline in unit sales and a more than 8% decrease in dollar volume compared to 2018. July, August and September of this year more than made up for the lower numbers and after the third quarter, both unit sales and dollar volume are up more than 1 and 2% for the year.
Inventory increased during the third quarter, which helped meet the demand, and most areas and price niches were well represented with available and desirable properties at all levels.
Luxury home sales, spanning from $2 million to $5 million, continue to be the driving force in overall sales increases, up more than 30% compared to a year ago. Bedroom communities in EagleVail, Avon, Edwards, Eagle and Gypsum were mixed with unit sales strong in the middle part of the valley and Gypsum. while Eagle saw fewer transactions than a year ago.
While more homes were put on the market in the third quarter, inventory remains a challenge, with new construction and sought-after locations still commanding high prices. Going into the winter there is a renewed sense that our active market will continue through 2020.
What it means for sellers
Fall has been historically active in the resorts and should continue in 2019.
“Overall the resort inventory of homes available for sale is low mirroring the overall countywide market,” said Mark Weinreich, broker associate for Berkshire Hathaway HomeServices Colorado Properties. “Sellers have an opportunity to capitalize on the low inventory and continued demand. One word of advice for sellers of older homes is to take the time to stage for a fresh current look. Even with the low inventory of homes, buyers are selective and educated and expect their broker to be as well. Buyers will step up for updated and premium locations but will not overpay.”
What it means for buyers
“While inventory remains low in the $300,000 to $600,000 range, we are now seeing more spec homes under construction in Gypsum and Eagle which means more inventory for buyers to choose from,” said Laurie Slaughter, also a broker associate for Berkshire Hathaway HomeServices Colorado Properties. “We expect demand to stay high in this price point so buyers must be prepared to make an offer quickly, including having pre-approval for financing from their lender.”
Looking ahead, the good news is interest has remained strong through the fall which bodes well for the holidays and winter season. Pending sales are up about 3 percent compared to last year so we expect year-end numbers to surpass 2018 and activity to remain strong throughout the coming year.
Michael Slevin is the president of Berkshire Hathaway HomeServices Colorado Properties.