The Eagle County residential real estate market continues to follow a “wait and see” pattern, which started in late 2022 and into the New Year. This is evidenced by February sales that mirrored January with 49 closed residential transactions – down from 89 in 2022, 92 in 2021, and 85 in 2020.
The list price-to-sales price ratio has also declined to 95.81% (compared to 100.11% in 2022). This decline, as in previous months, is mostly due to market correction with sellers who priced their homes too high relative to location and condition.
While the market has slowed, the average sold price and sold price per foot increased 16% in February over 2022, demonstrating continued strength in the resort/luxury space. In fact, this February Berkshire Hathaway HomeServices represented both the seller and buyer for the highest-priced sale ever for a residential property in Beaver Creek at $20.5M.
Demand remains strong in multiple price points and neighborhoods, although buyers are taking a longer “wait and see” approach, especially in our local/bedroom communities where they are factoring interest rates and home prices relative to the market. Days on market in February increased to their highest level since April 2021 – a clear indication of buyers waiting for prices (on mortgages and homes) to come into balance.
Resort/Luxury Market
Addressing current trends in the luxury/resort markets, Berkshire Hathaway HomeServices Colorado Properties broker associate Jeffrey Cloonan notes that an interesting cash trend has emerged. Since the third quarter of 2022, two-thirds of sales over $5 million have been cash closings.
“Our high-end buyers are breaking records on sales price, contributing to the uptick in price per square foot,” said Cloonan. “These buyers are investing in assets, such as real estate, that have historically held and appreciate in value. The added benefit is they get to enjoy this investment every day by living and using their homes.”
Cloonan notes that buyers who are pausing and waiting for the market to decline may want to reconsider and follow the trends that the high-net-worth individuals are acting on right now. “Multiple offers are still coming in for the right-priced properties, even in high-end residences, that are pushing the price up but it’s the buyers pushing the price, not the seller,” said Cloonan. “Listings that are new or nicely remodeled, with designer furniture, luxury finishes, and are turnkey for buyers are receiving a lot of attention and are quick to get offers. With Spring break upon us, I am confident we are going to continue to see a very active market in our resorts and surrounding towns,” Cloonan added.
Down Valley/Local Market
CJ Seatvet, a broker associate with Berkshire Hathaway HomeServices Colorado Properties notes that the down valley/local market is seeing a more stable price per square foot than the luxury/resort market. “Price per square foot is not dropping, but holding steady,” said Seatvet. “If the property is priced correctly, it is still moving. Sellers who are reaching for the moon are finding their properties are sitting on the market longer.”
As for buyers who may be holding off, or in the “wait and see” pattern relative to prices and interest rates, Seatvet notes that locals who are paying current rental rates should look at purchasing as these prices are mirroring each other – or in some cases rental rates can be higher than a mortgage. “Who wants to, or should, be paying rent when they could be in the same financial boat as buying,” said Seatvet. “What many locals don’t realize is there are several down payment assistance programs in Eagle County designed to help first-time buyers. This is where having a conversation with an experienced broker can help them understand they have more options than they think,” Seatvet added.
March and the next few months will tell us a lot about our market. With more market stabilization, we are experiencing more historic trends and thus inventory should only continue to rise through July – which should provide ample options for eager homebuyers and help temper prices. One of the key factors in finding a more balanced market will be interest rates. While you may not be watching rates daily, keep an eye on the 10-year treasury note rate as 30-year fixed rates generally track the 10-year and are a good barometer moving forward. Homeowners looking to make a move should balance price and condition when selling. Buyers are active but will not overpay for property and sellers who are in tune with the market will be successful given continued strong demand.
February Stats:
Lowest Price Sale: $436,000
Highest Price Sale: $20,500,000 (record sale in Beaver Creek)
Number of Sales: 49 (89 in February 2022)
Avg. Sold Price per Foot: $981 ($845 in February 2022)
Avg. Days on Market: 99 (62 in January 2022)
Homes Under Contract: 67
Michael Slevin is the president and owner of Berkshire Hathaway HomeServices Colorado Properties, started by his father, John, 52 years ago. The company has grown to 12 offices in 10 communities, spanning from Grand and Eagle Counties to the Western Slope.