Total property sales volume for Eagle County fell by over 23% due to absence of real activity during the pandemic. However, there are signs that the property market may be getting better. Although sales were sluggish during the first half of the year due to COVID-19, things have picked up since the economy reopened and restrictions eased. On the contrary, there have been significant increases for assets that were sold at the same time last year which is good news for sellers.
Commercial Real Estate
The local commercial real estate market appears solid. According to Erich Schmidt of NAI Mountain Commercial, the market is “all over the place.” There were some deals that have been closed or are expected to abort. On the bright side, those that were under contract before the outbreak and for which financing were arranged closed.
One of the biggest deals was the Tower Center in Gypsum with over 74 acres of land in Eagle County sold to a Chicago-based developer. Commercial builders will work on the site which will be mainly entry-level housing of different types and a portion dedicated to the retail sector. Vail Valley has a good pool of construction companies that can design and build new custom home or commercial property. Work is expected to commence in 6 to 9 months.
Residential Property Market
Overall, Colorado’s home sales registered a record figure of 10,771 units in July alone. Sales in the Valley are also recovering with the month of June showing that listings increased to 9.06% while median sales and list prices are also up by 12.22% and 13.63%, respectively according to Vail Daily. The average number of days that a property stayed on the market was reduced from 217 in June 2019 to 81 days in the same month this year indicating the increased interest and activity levels. A major concern remains and that is the lack of inventory although listings are rebounding and might help to close the gap. One thing is evident – buyer activity is high with people looking at the Valley where they can continue to telework and at the same time, enjoy the offerings of the area.
Even though real estate activity was quiet during the lockdown, it has since picked up since restrictions were loosened. Homes in the mountain community continue to attract buyers searching for a good location and lifestyle while developers are looking at potential investment areas.