Eagle County Real Estate Market Report:
While the Overall Market Slows, Positive Signs Emerging
Since the onset of the stock market decline and inflation and interest rate levels rising this spring, the overall Eagle County real estate market activity levels have been slowing. While it is almost unfair to compare today’s market to the harried state of 2021, the numbers in November of this year compared to both 2021 and pre-pandemic November of 2019 demonstrate a marked shift. In the valley, residential sales in November dropped 48% from a year ago and 36% from 2019. While prices have remained elevated due to lower inventory and resort sales, the market is experiencing the effects of a variety of factors – but there are signs that things are beginning to come into balance.
Most economists say we have likely seen the peak of interest rates and inflation — and both will slowly continue to come down – with interest rates remaining below our historic norms and allowing more buyers to enter the market and make moves within it. Buyers hesitant to purchase “at the top of the market” now have more purchasing power than a few months ago but because supply remains tight, should not expect deeply discounted homes – rather more options and less competition.
For sellers looking to make a move, the good news is that buyers are watching and waiting intently. Homes priced at market value are selling quickly as evidenced by the fact that days on market for homes sold in November declined by 25% compared to October of this year. Interest is high and while buyers may be waiting for the proverbial “bottom,” so too are others. When the right property comes to market, it’s best to be prepared so you can move quickly. Homes are selling at 97.76% of their last list price so there is room and opportunity to negotiate.
According to CJ Seatvet, luxury market specialist and associate broker with Berkshire Hathaway HomeServices Colorado Properties, the resort areas continue to remain steady with pricing, and any market correction is with homes that were overpriced initially. Demand is still high and multiple offers are still prevalent. Cash buyers still have the upper hand with offers. With limited inventory, many buyers are still having to make concessions on certain criteria, particularly if they are trying to do a 1031 Exchange, but they won’t overpay.
As for sellers, Seatvet notes that those who list a fair market value are still seeing heavy interest and multiple offers. “A significant factor for sellers listing their home is they don’t have the next step,” said Seatvet. “If a seller is looking to downsize or upsize, they are hesitant to list their home with the limited inventory. It’s not a matter of it selling, it’s where they will go in a limited inventory market.”
Jennie Longville May, a luxury home/down valley specialist and associate broker with Berkshire Hathaway HomeServices Colorado Properties, notes that the same priced-right pattern for homes selling quickly applies to Eagle County’s down valley market, including Eagle, Eagle Ranch, and Gypsum. “As with the resort market, demand is still there,” said Longville May. “Buyers should be ready to go with financing, so they are prepared to move forward quickly with an offer when they find that right home.”
Like the resort/luxury market, demand is still strong. “Sellers need to understand pricing and strategy for getting their home sold. Homes that are priced at market value and presented well to the market are selling, and quickly,” said Longville May.
Should You Wait?
“It’s a question we often get asked from buyers and sellers,” said Longville May. “We know what the market is today, and it is a healthy market. If you’re selling, you still have an excellent opportunity to get a great return on your investment. If you are buying, you have realized the Vail Valley is one of the greatest places to call home. Make sure you know what you can afford and have your financing in place if not a cash buyer.”
The resort/luxury and down valley markets are very dynamic. Working with an experienced broker who understands these markets and how to negotiate contracts has proven to be in the best interests of both buyers and sellers.
Michael Slevin is the president and owner of Berkshire Hathaway HomeServices Colorado Properties, started by his father, John, 51 years ago. The company has grown to 12 offices in 10 communities, spanning from Summit and Eagle Counties to the Western Slope.
114 Willow Road, #12, Vail
One of the most sought-after locations in Vail Village, this 2 bed/2 bath, 1,155 sq. ft. residence is steps away from Vail Village and Gondola One. The open-air kitchen and living room come with a gas fireplace, along with ski slope views from the south-facing deck Listed by CJ Seatvet with Berkshire Hathaway Colorado Properties for $2.999M and went under contract in five days.
260 Buckboard Road, B3, Edwards
Overlooking the 18th green of the Sonnenalp Golf Course, this bright and open 3 bed/2 bath, 1,374 sq. ft. townhome at 260 Buckboard Road, #B3 in Singletree has been meticulously maintained and enjoys beautiful views and spacious outdoor living areas. The main living room features hardwood floors and a wood-burning fireplace and opens onto the back patio and lawn overlooking the golf course. Listed by Kyle Denton and sold by CJ Seatvet, both with Berkshire Hathaway HomeServices Colorado Properties. The home sold for $1.09M in August 2022.
1868 W. Gore Creek Drive, Vail
Located at 1868 W. Gore Creek Drive in Vail, this 5 bed/4 bath plus den 2,484 sq. ft single-family home offers the ideal mix of privacy and location, including direct access to the Town of Vail bus line, just five minutes to Vail Village. Features include a main floor primary suite, gas fireplace, 2+car heated garage, walkway and driveway, and new hot tub on the wrap-around deck. Listed by Jennie Longville May and Rick Messmer with Berkshire Hathaway HomeServices Colorado Properties for $2.295M. The property went under contract in four days.
51 Autumn Glen St., Gypsum
Situated on a large corner lot at 51 Autumn Glen Street in Gypsum’s Chatfield Corners, this recently upgraded 3 bed/2 bath, 1,353 sq. single-family home offers ground-floor ranch-stye living and private, mature landscaping fenced-in back yard. Recent updates include new lighting, great room flooring, and kitchen appliances and cabinets. Listed by Rick Messmer and Jennie Longville May with Berkshire Hathaway HomeServices Colorado Properties for $649,000. The home went under contract in four days.