Buyer demand soars to all-time high
Summer’s robust selling season has extended itself into the fall with buyer demand and closings at an all-time high, particularly in September. While August this year saw a slight increase in sales (nine more than August 2019), September took off with a 43.06% increase in home sales over September 2019.
Commanding this surge were homes in the $1.6+ million price range, also indicative of the upward trend in average sales price, up 60.89% for September alone and 26.14% year-to-date. Continued large demand, with very little supply, remains the Valley’s biggest challenge, which for the first time in memory, has more properties under contract than currently available.. Available listing inventory, year over year, is down about 23%, but contracts are up over 60% and the dollar volume is up 76% from a year ago.
The surge of new buyers coming to the Vail Valley from a variety of markets, including many of our traditional feeder markets, including the Front Range, East Coast, Dallas and Houston, Florida, California, Chicago and other parts of the Midwest, is unprecedented. This also includes many buyers who already own homes here and are looking to make the valley their permanent residence, selling what was once their second (or third or fourth) home and upsizing to accommodate their family’s day-to-day needs.
Given the current pace and number of homes under contract (pending) coupled with continued higher than normal buyer demand, it is anticipated that 2020 will be one of the best performing sales years for the Vail Valley and Down Valley markets and likely to exceed 2019 and near 2005.
What it means for buyers:
Because many buyers have a familiarity with the area, it then comes down to working with a knowledgeable broker who understands our market’s unique attributes and pricing as well as an advisor who has the technological capabilities of “showing” the property remotely. The speed of our market demands a broker who has an inside track on new listings and opportunities not available to the general market. Buyers who are clear about their next move—meaning their desired area, their next home’s style, location and other details—will ensure the best possible result. That’s true for a buyer who is physically here or purchasing remotely.
Despite the low inventory, buyers still have options to purchase in today’s market, in all of our communities and in a variety of price niches. Being prepared is paramount. For those who will obtain financing, having discussions with your lender now will position you for the best possible outcome. Being flexible will also help as an owner may need to identify and contract for a replacement property. And finally, acting quickly, and with the right information, will help you rise above the other buyers to position your offer in the best possible light.
What it means for sellers:
Given the current climate, which includes rising average price, lack of inventory, continued growing buyer demand and drop in average days on the market, now may be just the right time to consider selling. While there is relative certainty in the real estate market today, overall uncertainty about the coming winter and 2021 makes this an ideal time to list a home.
For additional market trends and information, including Berkshire Hathaway HomeServices Colorado Properties offices, brokers and listings, visit www.bhhscoloradoproperties.com or call 970-329-2482.
Michael Slevin, President
Berkshire Hathaway HomeServices Colorado Properties