The buyer demand we have been referencing since the start of the year came to fruition with a significant uptick in closed sales during March. After January and February had only 49 closed sales each month, lower interest rates and continued market activity brought closed sales to 70 in March, 43% higher than the first two months of the year and only down 21% from March 2022.
Factors contributing to this upward shift include mortgage rates that are stabilizing and trending down, which could turn into ideal timing for the spring and summer seasons when most of the valley’s sales occur. Purchasing power for buyers who finance will increase with rates declining. The expectation is that an increase in available homes for sale may stabilize prices in a seller’s market.
Overall, the market is nuanced and hyper-local. Trends in one area may not be the same in others. This is where working with an experienced, local broker is in your best interest. They bring the experience and knowledge to negotiate your best deal, whether you are a buyer or seller.
What This Means For Buyers And Sellers
Resort/Luxury Market
Mark Weinreich, an associate broker with Berkshire Hathaway HomeServices Colorado Properties’ Beaver Creek Villa Montane office, notes that it is still a great time for sellers to capitalize on getting top dollar for their home. “Vail’s resort market has been holding its own with demand still staying high and sale-to-list ratios still in the high 90th percentile,” said Weinreich. “While the previous years’ frenzy has slowed, values are still at all-time highs. Most of the adjustments are coming from properties that were listed outside of reasonable market value. Homes that are priced right relative to location and condition are still going under contract in a matter of days,” Weinreich added.
For buyers, Weinreich advises on patience but also avoiding the “wait and see” approach. “New listings come to market every day and we expect this to rise as we head into the popular spring and summer buying seasons. Working with a broker who can keep an eye on the market for you is your best approach. Experienced brokers often get knowledge of properties before they hit the MLS, giving clients an advantage of first-seen, first-served.”
Mid- to Down Valley
For the local or down-valley buyer, Laurie Slaughter, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Gypsum office, notes that the mid- and down-valley markets are seeing a slight uptick in buyer activity as we head into spring. “Buyers also seem to be adjusting to the rise in mortgage rates,” said Slaughter. “While prices are still at all-time highs, there are options available, particularly for first-time buyers, including local down payment assistance programs. We continue to sell homes every day and talking to a local lender can give buyers insights into what they can afford and options they can consider.”
Slaughter concurs with Weinreich that if you’re thinking about listing your home, it is a great time to capitalize on the price strength – in all price points. “The shortage of inventory under $800,000 is still high, along with buyer demand for the under $1M price point,” says Slaughter. “While none of us have a crystal ball, holding out has never been the best option. Taking the wait-and-see approach has left more sellers disappointed, including those waiting for the valley to “green up.” Buyers are ready to buy now, and sellers can stay ahead of the competition by listing their homes sooner than later. Sellers who get the highest prices are the ones who list their home at the right price based on location and condition – no matter what market or season,” Slaughter added.
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.