Resort Area Numbers
Buoyed by a strong stock market and stability in other financial areas, resort real estate in the Vail Valley has continued to boast some of the best gains in the market. Both the villages of Vail and Beaver Creek are up in unit sales and dollar volume from last year.
Unit sales between $2m and $5m are up almost 30% and dollar volume is up 18%. Sales over $5m have increased 58% in units and more than 71% in dollar volume (and this does not include an “off market” sale for $28.7m in Vail Village late in the summer). Confidence in the resort markets remains strong as we head into the final quarter of the year with more contracts pending – many to close before we get to enjoy the mountains on skis, snowboards and snowshoes.
Valley Floor Numbers
Sales for neighborhoods outside the resorts of Vail and Beaver Creek continue to demonstrate that market demand is strong. Unit sales increased by about 6.5% compared to the first three quarters of 2016 and dollar volume is up approximately 5.5%. The current test is inventory – specifically with entry level homes.
Given the positive numbers, the inherent challenge is pricing and availability. In general terms, the market momentum is both a positive and potential negative for the overall market. Strong sales in the under $500,000 and $1m markets risk homebuyers at the entry level being able to afford homes. Affordability is a key factor in the market to bring new buyers into homeownership and sellers of those homes into new ones.