The Vail Valley real estate market rebounded in both unit sales and dollar volume compared to 2016. Overall unit sales were up slightly (0.80%) but dollar volume increased 12.75% due to both luxury/higher-end sales activity and values trending up valley-wide. The gains were seen throughout the valley, but more noticeably in the resorts of Vail and Beaver Creek as well as down valley in Gypsum and Dotsero, where unit sales increased almost 55% and dollar volume rose 71%. The strength in the western part of the market is a direct result of new inventory being brought to market coupled with high-demand. In face, demand exists throughout the valley, yet inventory levels are down 5.4% from a year ago – hovering around the lowest levels in at least 12 years. Buyer activity and interest remain strong and if inventory comes to market this spring, we should see another active year in 2018.
If you would like to see a complete market analysis of your neighborhoods or complex, please CLICK HERE. I can also send monthly or quarterly reports to you so you can keep abreast of the market or just your area of interest.
In summary, we are back to Economics 101 – supply and demand. As stated before, the demand for residential property throughout the Vail Valley is strong. It is our supply that lags. Available inventory, if stagnant, is generally a product of being priced too high for the market. And unlike the pre-recession real estate cycle, buyers today are much more critical of pricing, often unwilling to pay above market value unless the property is new and/or irreplaceable in its location. Feel free to contact me anytime if I can help answer your questions about today’s market.