Real Estate Market Update for the “First Half” of the year.
The first half of the year shows strength in activity but it is not evenly distributed across all communities and price points. The valley floor has seen a strong rebound this year compared to 2012. Unit sales of residential properties in areas from Eagle-Vail to Gypsum (non-resort) are up more than 5%, and the dollar volume is up approximately 33%. Prices have recovered and there is a healthy balance between supply and demand in these markets.
The resort communities in Vail Village, Lionshead, Cascade Village, and Beaver Creek Resort tell a different story. Activity compared to last year is relatively flat, however, the dollar volume in our $2M+ market is down significantly – a sign that there is still a price disconnect between buyers and sellers in this segment. While many “feeder” markets to the Vail Valley have recovered in strong fashion, that has yet to translate across the board in the core resort areas. There is good inventory available and more coming to market daily. We should peak in our available listing inventory in early August so options for buyers should be good, while sellers looking to move their property this summer should be acutely aware of where the market is priced today. There is demand – but it is driven primarily by one variable – price.