January – June 2020
Heightened interest amidst uncertainty
Clearly, the first half of 2020 has brought noticeable market shifts in real estate both in the Vail Valley as well as worldwide. While every market experienced a pause due to the onset of the COVID-19 pandemic, what has been unexpected is the amount of activity and price point increases throughout the Vail Valley since restrictions were eased.
For June alone, new listings were up 9.06% from last year. Both median sales and list prices are also up, 12.22% and 13.64%, respectively. While closings were down significantly, as expected, current inventory and buyer interest indicate much of that will be made up in the next two quarters. Average days on the market have gone from 217 in June 2019 to 81 days in 2020, which support the heightened interest and activity levels noted above.
The biggest issue that remains, dating back to last year, is lack of inventory, though recent rebounds in listings coming to market are helping to close that gap and are expected to continue throughout the rest of the year. Buyer activity is the highest the valley has seen since before the recession and there is tangible evidence that buyers are seeking out the valley as a place where they can continue their work remotely and enjoy all the area has to offer.
Another important point is the Vail Valley is really comprised of several markets, each with its own special nuances, opportunities and challenges. To get a better sense of what these trends mean for buyers and sellers, Berkshire Hathaway HomeServices Colorado Properties’ associate broker, Larry Agneberg (Vail/Resort Market) provides additional insights.
Vail Valley | Resort Market
What it means for buyers:
According to Agneberg, a 37-year Vail Valley real estate veteran and top selling broker associate, more properties continue to come to market daily but like the entire valley, can get snapped up quickly. Buyers should be knowledgeable about the current inventory and have a good feel for values. When the right property appears, be ready to look at the property quickly and make an offer. If planning to finance, being ready also means having pre-approvals in place and understanding the lender’s parameters. A key insider tip is a local broker can help set listing alerts for properties that fit each buyer’s parameters. With interest rates at historic lows, it’s a great time to buy.
What it means for sellers:
Given current buyer demand, there is some wiggle room to price homes slightly above market value. That being said, the pricing needs to be based on realistic comps that factor in location, views and condition. Ultimately, the buyers will stipulate what the home is worth. If, after several showings, there are no offers, a price adjustment may be in order. It is a great time to sell as buyer interest continues to grow. However, there are still instances of homes being on the market for a year, or longer, so working with a local broker who can help you navigate pricing and market value can help mitigate potential momentum losses. For more information on the Vail/resort market, contact Agneberg at 970-376-7100 or larry@keytovail.com.
