Heading into Summer: Eagle County Real Estate Market Report

By Michael Slevin

 

The Summer real estate market in the Vail Valley and Eagle County are showing many positive signs. A combination of our natural market cycle, along with sellers taking advantage of active buyer demand, has brought inventory levels up, affording more options for those looking to purchase in our market. Although national headlines portend a slowdown or plateau in sales nationally, the rise of interest rates, inflation pressures, and national/international unrest have not shuttered the markets as some have expected.

 

Demand remains strong for Eagle county real estate. The Summer real estate market in the Vail Valley and Eagle County are showing many positive signs. A combination of our natural market cycle, along with sellers taking advantage – but a word of caution to those sellers looking to capitalize on it — be cautious not to overprice and “test” the market. While sellers still have plenty of interested buyers, these buyers are more critical of the properties and their prices relative to comparable sales in the neighborhood or price niche.  The headwinds in the market have created just enough pause that sellers need to adjust and expect that a sale, at their price, may take longer and result in fewer potential buyers than a year ago.

While inventory in Eagle County is 15% lower than  this time in 2021, contracts are only down 7.5% and that number should become more aligned with 2021 as more owners become sellers in the market. Overall, the message is quite positive.  Interest rates still remain well-below historical averages and with the expected continued influx of available property for sale, prices may not increase at the rate they have been for the last 24 months.

 

Resort/Luxury Market

Timm Kluender, luxury collection broker associate for Berkshire Hathaway HomeServices Colorado Properties’ Vail-Lionshead office, notes that sellers of resort properties in Vail, and Lionshead in particular, have seen some record-breaking sales over the last few months, including:

• Arrabelle at Vail Square for $13.1M in May, the highest sale price for this property
• Lionshead home sale for $30.875M at the end of March, nearly double the previous high for Lionshead and the second highest priced single-family home in Vail history
• $10M Cordillera single-family home sale this spring

According to Kluender, interest rates matter less with these types of luxury properties. Resort buyers are typically either paying cash or have investments that are outperforming mortgage rate levels. Money is still relatively cheap, historically speaking.

 

“Summer typically sees the highest volume for listings and sales, starting to pick up in June and hitting the height of listing inventory around the first week of August,” said Kluender. “August and September create a favorable conditions in the busiest period of the year for Vail real estate, with summer visitors looking to beat the heat, and winter enthusiasts looking to purchase before the upcoming ski season.”

 

Inventory

Kluender also notes that Vail resort inventory is currently lower than at the beginning of the ski season, but much of the decrease is due to sales and pending contracts at new construction and pre-construction projects such as Altus, Elevation, and Legacy at Vail Square. There are still a lot of active listings on the market in Vail in the $1M – $40M range, and if historical inventory patterns stay true to form, there’s more on the way.  Buyers can look forward to a greater selection of properties to choose from this summer.  For sellers, the recent high-water mark sales will help buoy the market and keep values high.

 

Mid-Valley to Down Valley

Kira Taylor, broker associate for Berkshire Hathaway HomeServices Colorado Properties’ Edwards office, expects a bump in inventory for the mid-valley to down-valley markets (Edwards to Gypsum) for the summer season. Demand for the under $1.2 million price point remains high and is still moving quickly. While there has been some slowing in the volume of multiple offers, they still exist.

 

Taylor says buyers are adjusting their expectations with the new interest rates and what they can afford.  She notes the importance of having financing in place before making an offer and keeping in close contact with lenders as rates adjust. “There are still cash buyers, and those deals can be more attractive to sellers,” said Taylor. “Having pre-approvals as well as other clauses in offers that give flexibility to the seller helps position buyers much more favorably. Days on the market could increase if homeowners push price and buyers at any price point are discerning. If you’re selling your home, be sure it is show ready and staged to maximize list to sale price ratio. As previously noted, interest rates are still historically low and are not expected to deter buyers from buying in our market.”

 

Michael Slevin is president of Berkshire Hathaway HomeServices Colorado Properties, a 51-year family- owned business with 12 offices in 10 communities spanning from Summit County to Vail to the Western Slope.

119 N. Penstemon Lane, Gypsum

Located at 119 N. Penstemon Lane in Gypsum, this custom-built, 4 bed/4 bath, 3,709 sq. ft. home

in the desirable Eagle Ranch neighborhood offers an ideal blend of space, luxury, and functionality with an open floor plan and gourmet kitchen. Additional features include home office, private deck, fenced yard, Jacuzzi hot tub, walk-out basement, and recreation room. Listed by Kira Taylor, Berkshire Hathaway HomeServices Colorado Properties, for $1.825M. The home is currently under contract.

 

125 Willowstone Place, Gypsum

This owner-built, custom-designed, 6 bed/4 bath, 4,832 sq. ft. home backs out to the Eagle River. Located at 125 Willowstone Place, in one of Gypsum’s most desirable neighborhoods, the open air, two-story home offers ample space to move around and 6-car garage. Listed by Rick Messmer and Jennie Longville-May with Berkshire Hathaway HomeServices Colorado Properties for $1.15M. The home is currently under contract with buyers from Kira Taylor, also with Berkshire Hathaway HomeServices Colorado Properties.

 

141 E. Meadow Drive, 4E East, Vail

This luxury, open-concept Solaris residence offers a prime location in the heart of Vail Village. Located at 141 E. Meadow Drive, 4E East, this 2 bed/3 bath, 1,746 sq. ft. residence includes an office den that can be used for a third bedroom, 24-hour concierge service, swimming pool, hot tub, fitness center, ice skating rink, bowling alley and ski locker at the Gorsuch Ski Cafe next to Gondola One. Listed by Timm Kluender with Berkshire Hathaway HomeServices Colorado Properties and sold for $3.5M in February 2022.

 

531 E. Lionshead Circle, Vail

Located at 531 E. Lionshead Circle, #306, this newly remodeled, 2 bed/2 bath, 886 sq. ft. condo offers a finely appointed pied-a-terre in the heart of Lionshead Village with a top floor, corner location and ski slope views. Additional features include vaulted ceilings, modern chic décor, office, and private balcony. Listed by Timm Kluender, Berkshire Hathaway HomeServices Colorado Properties for $2.195M.