Eagle County Real Estate Market Report:
A Changed Market Yields Opportunities
Our market continues to show its resiliency despite headwinds from inflation, interest rates, and geopolitical uncertainty. No, it is not going to equal 2020 or 2021. That market was not sustainable. It is, however, trending back to pre-pandemic levels, where we saw a healthy market supporting the objectives of buyers and sellers.
The unique circumstances of the last two years required brokers to quickly initiate virtual showings and navigate multiple offers and escalation clauses (to name a few) to serve the dynamic market. Today’s environment still relies on this level of expertise. Pricing your home for today’s market requires a thoughtful, detailed approach. Staging, negotiating, and procuring showings have become critical elements for sellers in this transitioning environment.
For buyers, you have the chance to be more critical of homes and allow time to look at your goals relative to today’s market. Concerns about rising interest rates are being offset by strategic broker negotiations for alternative lending options, benefitting both buyers and sellers.
On the surface, while unit sales are down for Q3 year over year (1,272 in 2021 compared to 952 in 2022), the balance of the numbers shows a very impressive year. Average sales price increased from $1.728M to $2.032M, price per square foot grew from $741 to $857, and days on market decreased from 82 to 36. In addition, the list-to-sale price has also nudged up from 98.5% to 99.5%, influenced by more sellers listing or coming down to market value in their pricing.
In a nutshell, the strength of the overall market in 2022 is a combination of early sales in Q1 and the resiliency of resort properties and luxury sales.
Mid-Valley to Down Valley
While there was a surge in inventory in June and July, that has leveled off as deals were closed. “We’re in a healthier state right now, even if inventory is still relatively tight. Well-priced homes are selling quickly and there are well-qualified buyers still out looking. I have found that buyers are frequently motivated more by their stage of life and personal finances than by strictly waiting until the market conditions are most favorable. Sellers who price their home correctly are still capitalizing on very strong appreciation however they are not necessarily consistently seeing multiple offers and contingencies waived like we were the last two years.”
The numbers don’t always tell the true story. “While closings on $2M+ residential homes between East Vail and Edwards are down 22% year-to-date over 2021, and the average sales price is down approximately 3.5%, we’re still looking at an average price of $4.7 million. It really comes down to the right price for the location, views, and size relative to the property’s age and updates”.
There is no crystal ball on what the market will do or where it will go. It really comes down to timing and the needs of the seller or buyer. “Real estate, over the long term, continues to be a great investment and when you factor the quality of life in the Vail Valley and Eagle County, it is pretty much guaranteed to give you a return."