Despite lower numbers of sales (71 in May 2023 vs. 129 in May 2022) and an increase of days on the market (76 vs 27 in May 2022), real estate fundamentals are reemerging and driving success for buyers and sellers. Well-priced homes that are in great condition before coming to market are receiving attention from a robust buyer pool trying to enter the market or who are making shifts in their current housing here in the valley. Buyers, who are prepared to act quickly in active markets, have been rewarded.
The overall pace of the real estate market continues to lag from previous years (to be expected). It is primarily being hindered by inventory and seller’s (or potential seller’s) concerns about replacement properties if remaining in the area. Market-priced homes continue to attract multiple offers, a clear indication that buyer interest and activity remain strong despite headwinds at a macro level. For buyers financing, forecasts show that mortgage interest rates should decline over the next 12 months and that may lead to even more activity. Either way, with limited inventory, there is no sign of a marked decline in values. If anything, they are stable, though a few pockets of the market have experienced some softening – mostly due to affordability – or being overpriced relative to condition and location.
What it Means for Buyers & Sellers
Resort/Luxury Market (Vail, Beaver Creek, Arrowhead, Singletree, Cordillera)
Alida Zwaan, a broker associate with Berkshire HomeServices Colorado Properties in the Vail/Lionshead office, says current luxury market buyers are being more selective and are primarily interested in new or remodeled homes. “There is still demand, which is good news for sellers, but these buyers don’t want to pay for property that has to be remodeled,” said Zwaan. “Resort market buyers have the luxury of cash to buy what they want when they want. With rising building costs, combined with the time required for construction and added expense, buyers would prefer to pay for a new property.”
This buyer trend also impacts sellers and Zwaan notes that listing a home that’s out of line with market values based on location and condition is driving up days on the market. Homes that are priced right are selling and selling pretty quickly. Buyers are not willing to pay more than they believe is fair market value, not always what the seller wants to get for their home, “ said Zwaan. “It’s a reality check; if you want to sell, listen to the advice of an experienced broker vs. one who just wants your business. The market stats don’t lie and the homes that are selling are priced right.”
Down Valley (Eagle, Eagle Ranch Gypsum)
With the summer season upon us, Laurie Slaughter, the managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Gypsum office, notes that buyers who are open to living further down the valley, including a more temperate climate, will find lower price points, and additional new construction options. “Both Hay Meadow in Eagle and Siena Lakes in Gypsum have started building and are offering early construction pricing with relatively small down payments,” said Slaughter. “These are good options for buyers who have time flexibility on a move-in date. For others, making sure you have financing and pre-approvals in place is important so that when the right property comes along you are in the best possible position to get your offer accepted. The right-priced homes are still in high demand and often getting multiple offers,” Slaughter added.
On the seller’s side, Slaughter reiterates the importance of pricing their home reasonably if they want it to sell. “It is important for sellers to list their home within the market value. Real estate brokers know the market and can help sellers get to a price where they can sell more quickly. All the indicators show that the homes that are priced right sell quickly and the ones that aren’t sit on the market. The low inventory doesn’t mean sellers can get whatever they want. Buyers are willing to wait for the right home at the right price,” said Slaughter.