Eagle County Real Estate Market Report: Market resiliency sets the stage for strong summer selling season
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Eagle County and the Vail Valley continue to show market resiliency, with March sales up 47% over March 2023. While the average sale price was down, and days on the market were on the rise, the list-to-sale price ratio was almost 99%.
What does this all mean? The market remains strong, sellers are meeting buyers with their pricing, and although interest rates have stayed in the mid-to-high 6% range, buyers continue to make moves in all price points and neighborhoods.
This is all positive news heading into summer, which is traditionally the busiest selling season. A more stabilized market amidst continued buyer demand and acceptance of the “new norm” for interest rates has more buyers and sellers deciding to make the move.
Inventory levels are expected to continue to rise through August and with that, more sales. Serious sellers who have heeded the advice to price their home based on market value are being rewarded with offers at or close to the list price, as evidenced by the 99% list-to-sale price ratio. The good news is this reflects a more balanced, pragmatic market.
So, as a buyer or seller, what does this mean based on your specific market area or interest?
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Luxury and resort market
Alida Zwaan, broker associate with Berkshire Hathaway HomeServices Colorado Properties, who has been selling real estate in the Vail Valley for more than 40 years, notes that every economic period and market presents different challenges, the most recent being demand for new construction and limited inventory.
“Currently, buyers in the luxury/resort market are primarily interested in new construction,” said Zwaan. “Second is recently updated homes. Buyers in this market want move-in ready without having to make the time and financial investment with a remodel. Dramatic views, a great location, and an open floor plan have the highest appeal for the majority of buyers,” added Zwaan.
For sellers, Zwaan notes that older homes or newer ones that are overpriced will take longer to sell, which impacts average days on market. “Buyers mostly want new or updated, but they also will not overpay. Homes that are priced right based on location, amenities and condition will sell quickly. “If you’re a buyer, determine the amount you can afford before you start looking at properties. It will save you a lot of time and keep you focused.”
Edwards, Eagle, Eagle Ranch, Gypsum
For the mid- to downvalley markets, increasing inventory has and is expected to create more options for buyers, many of whom are coming to accept the new interest baseline and deciding to make the move. As a result, this has also created more competition.
“Buyers need to remember they are not the only buyers shopping, ” said Jared Saul, broker associate with Berkshire Hathaway HomeServices Colorado Properties. “It’s important buyers be competitive with their offer. If the home is priced right, be careful of a low-ball offer. As much as buyers don’t want to overpay, if a home is priced at market value, buyers need to do more than just throw out a number.”
“Oftentimes providing the seller with some recent comps that support your offer will help avoid insulting the seller,” Saul added. “Oftentimes there are competing buyers who are willing to pay the right price for the right home so you may need to get creative with your offer such as a lease-back or flexible closing terms that is meaningful to the seller and makes you stand out.”
Saul also advises sellers to take an honest look at their home and consider the deferred maintenance that may be needed soon.
“When looking at how to price your home, focus on the sold comps instead of the active comps,” Saul said. “The sold comps give a more realistic price of what buyers are willing to pay vs. an active listing that can be centered more around what a seller wants.”
One tool Saul uses to help sellers and buyers gain is to put themselves in the buyers’ shoes.
“If you were out shopping for a home today and paying current interest rates, would you buy your own home at the price you are asking?”
This goes for buyers too. Buyers and sellers need to remember they are not going to get it all.
“Pick your top priorities and be ready to make some concessions on other points in order to make a deal work,” Saul said.
Michael Slevin is the president and owner of Berkshire Hathaway HomeServices Colorado Properties, started by his father, John, 53 years ago. The company has grown to 12 offices in 10 Western Slope and mountain resort communities, spanning from Grand and Eagle Counties to the Western Slope. The company also became the network’s top-performing Colorado brokerage firm in 2023.
