The summer real estate market in the Vail Valley is showing many positive signs. A combination of our natural market cycle, along with sellers taking advantage of active buyer demand, has brought inventory levels up, affording more options for those looking to purchase in our market.
Although national headlines portend a slowdown or plateau in sales nationally, the rise of interest rates, inflation pressures, and national/international unrest have not shuttered the markets as some have expected.
Demand remains strong — but a word of caution to those sellers looking to capitalize on it -— be cautious not to overprice and “test” the market. While sellers still have plenty of interested buyers, these buyers are more critical of the properties and their prices relative to comparable sales in the neighborhood or price niche. The headwinds in the market have created just enough pause that sellers need to adjust and expect that a sale, at their price, may take longer and result in fewer potential buyers than a year ago.
While inventory in Eagle County is 15% lower than this time in 2021, contracts are only down 7.5% and that number should become more aligned with 2021 as more owners become sellers in the market. Overall, the message is quite positive. Interest rates still remain well-below historical averages and with the expected continued influx of available property for sale, prices may not increase at the rate they have been for the last 24 months.
Resort/luxury market
531-E-Lionshead_306_BHHS_TimmKluender
Timm Kluender, luxury collection broker associate for Berkshire Hathaway HomeServices Colorado Properties’ Vail-Lionshead office, notes that sellers of resort properties in Vail, and Lionshead in particular, have seen some record-breaking sales over the last few months, including:
- Arrabelle at Vail Square for $13.1 million in May, the highest sale price for this property
- Lionshead home sale for $30.875M at the end of March, nearly double the previous high for Lionshead and the second-highest priced single-family home in Vail history
- $10M Cordillera single-family home sale this spring
According to Kluender, interest rates matter less with these types of luxury properties. Resort buyers are typically either paying cash or have investments that are outperforming mortgage rate levels. Money is still relatively cheap, historically speaking.
“Summer typically sees the highest volume for listings and sales, starting to pick up in June and hitting the height of listing inventory around the first week of August,” Kluender said. “August and September create a favorable conditions in the busiest period of the year for Vail real estate, with summer visitors looking to beat the heat, and winter enthusiasts looking to purchase before the upcoming ski season.”
Inventory
Kluender also notes that Vail resort inventory is currently lower than at the beginning of the ski season, but much of the decrease is due to sales and pending contracts at new construction and pre-construction projects such as Altus, Elevation, and Legacy at Vail Square. There are still a lot of active listings on the market in Vail in the $1M to $40M range, and if historical inventory patterns stay true to form, there’s more on the way. Buyers can look forward to a greater selection of properties to choose from this summer. For sellers, the recent high-water mark sales will help buoy the market and keep values high.
Midvalley to downvalley
Kira Taylor, broker associate for Berkshire Hathaway HomeServices Colorado Properties’ Edwards office, expects a bump in inventory for the mid-valley to down-valley markets (Edwards to Gypsum) for the summer season. Demand for the under $1.2 million price point remains high and is still moving quickly. While there has been some slowing in the volume of multiple offers, they still exist.
Taylor says buyers are adjusting their expectations with the new interest rates and what they can afford. She notes the importance of having financing in place before making an offer and keeping in close contact with lenders as rates adjust.
“There are still cash buyers, and those deals can be more attractive to sellers,” Taylor said. “Having pre-approvals as well as other clauses in offers that give flexibility to the seller helps position buyers much more favorably. Days on the market could increase if homeowners push price and buyers at any price point are discerning. If you’re selling your home, be sure it is show ready and staged to maximize list to sale price ratio. As previously noted, interest rates are still historically low and are not expected to deter buyers from buying in our market.”
Michael Slevin is president of Berkshire Hathaway HomeServices Colorado Properties, a 51-year family- owned business with 12 offices in 10 communities spanning from Summit County to Vail to the Western Slope.
