Vail Valley Real Estate on the Upswing

The start to 2024 is following the predicted path of improved activity, spurred by more listings, increased inventory, and relaxed interest rates. January sales, which are generally a product of November/December contract activity, were up 33% compared to January last year. Inventory is up 25% and pending sales 8% compared to January 2023, and dollar volume up 47% year-over-year.

Acccording to Michael Slevin, president of Berkshire Hathaway HomeServices Colorado Properties, with 12 offices in 10 mountain resort communities, the shift in interest rates is creating more interest and opportunities for some local homebuyers to lock-in rates well below 2023 highs. The equity market strength has also continued to encourage resort buyers to enter the market. County-wide, the average sale price in January was over $2.15M, and average price per foot has now surpassed $1,000 – both higher than a year ago.

Slevin notes that nationwide, home prices are expected to increase moderately and combined with the expected rate cuts in spring and summer, the market is expected to see more historic norms return. This should include having more properties for sale to meet the strong demand for mountain lifestyle living. "If buying or selling -- or both -- are in anyone's 2024 plans, there is ample evidence that now may be the right time to make a move," said Slevin. "Although inventory is elevated, selling now can help avoid more competition for buyers in the spring/summer, and provide additional leverage in capturing their attention."

What the current market means for buyers and sellers:

Luxury/Resort Market (Vail, Beaver Creek, Arrowhead, Singletree, Cordillera)

Craig Denton, a 46-year real estate veteran and managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Vail Village office, notes the luxury/resort market remains very active. “One should never under estimate the amount of wealth in the world, which has always supported internationally known resorts, such as Vail,” said Denton.

Denton cites the stability of prices in the luxury market, and those which have continued to rise, are basically due to the limited amount of desirable and turnkey properties which are sought from these buyers. “There continues to be a strong desire to move to resorts such as Vail, particularly ones that are not too far removed from a major metropolitan area, have easy access to a major transportation center such as Denver as well as regional and private airports nearby,” said Denton.

Another driving trend is the continued strength of home prices, and when coupled with the ability to work remotely, luxury market buyers appear to be seeing their purchase as another avenue for asset preservation, and for many, a safe and protected lifestyle compared to many major cities. “There are many reasons to own and spend more time here, which is sustaining the value for luxury properties. It’s simply the old adage of supply and demand and we have more demand than supply,” added Denton.

Mid- to Down Valley Markets (Edwards, Eagle, Gypsum)

Primarily catering to the local market with a growing influx of empty nesters looking to adjust their lifestyle to accommodate family members or downsize, the easing of interest rates is spurring more interest among sellers to think about making the move.

Another trend that is emerging is a pool of buyers who are resurfacing after deciding to wait when they did not find something post-COVID. “As I speak with buyers and sellers, they are expressing their interest in moving, either into or out of the valley,” said Kira Taylor, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Edwards office. “There is more expressed desire to make a move than in the past couple years, which supports the anticipation of greater activity in listings and sales,” said Taylor. “The challenge with those wanting to move is they just aren't sure where their next move will be yet and if they want to stay in the valley.”

A key factor in the success of a sale and ability to attract the right buyer, whether it is in the luxury or down valley markets, comes down to a fair market pricing. While demand is still outpacing inventory, today’s buyers are savvy and not willing to over pay. Homes that are priced fairly based on location, condition, and amenities are the ones that are moving quickly. Engaging an experienced local broker is the key to maximizing a return on investment, and for buyers, putting forth offers and negotiating contracts that factor in sellers’ needs and interests.