Eagle County Real Estate Market Report: Rising inventory expected to spark sales

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As predicted, and following previous months’ inventory upticks, available homes for sale are increasing and expected to continue into and through the summer months. Compared to a year ago, inventory in the Vail Valley is up 29% while pending sales have declined 29%. Much of the pending sale decline can be attributed to the completion (and sale) of projects in Avon at Frontgate and One Riverfront, which closed in late 2023 and early 2024.  With new inventory coming on to market throughout the valley,  and continued high buyer interest and demand, we expect continued sales increases.

Compared to 2023, April residential sales were up 7% with an average sale price over $3M.  This demonstrates both strength and activity in the valley’s resort markets. Local homeowners and buyers remain less active compared to the resort/luxury markets, which is attributed to continued  interest rate volatility, along with some areas still experiencing below average inventory, particularly in the lower price points. 

As of April, many economists and leading real estate professionals expect homes to continue to appreciate about 3% in 2024.  Continued below average inventory, coupled with ongoing demand and interest in all Eagle County markets should keep prices strong throughout the year.  Anticipated interest rate cuts in the third and fourth quarters are expected to fuel even more demand in the market as we head into the ski season.

What the current market means for buyers and sellers:

Resort/Luxury (Vail, Beaver Creek, Arrowhead, Singletree, Cordillera)

The Vail Valley’s unique real estate market stands apart from most areas of the country, including higher than average sales.  Demand remains very strong, which helps sellers but can make it more frustrating buyers. 

Janet Boeser, broker associate with Berkshire Hathaway HomeServices Colorado Properties, notes that being flexible, whether you’re a buyer or a seller, can present more opportunities. “A client from Florida was getting pretty discouraged 18 months ago, when there were fewer options and homes were going under contract in 7 to 14 days with multiple offers,” said Boeser. “He decided to hold off, while keeping an eye on the market.  Now, with more inventory coming to market, he is more optimistic about his options and ability to find a home that fits his lifestyle and budget.”

Boeser also notes that buyers who have more flexibility — and vision – will have more options, along with less competition, if they look at homes that require updating. “Having a vision and/or working with a good interior designer can pay off and is a good option to get into the market and buy a longer-term mountain home rather than waiting for the “perfect” dream home, which usually doesn’t exist,” said Boeser.

Continued…

May 2024 Eagle County Market Report, cont,

On the seller side, Boeser has been working with a Singletree couple who wanted to get top dollar for their home and expedite a quicker sale. “Discussing their options and understanding many second homeowners are looking for an updated, turn-key home, the couple decided to do a complete renovation of their residence,” said Boeser.  “By doing so, these sellers are likely to have a quicker sale, while also maximizing their profits from the renovation.” 

Down Valley (Eagle, Eagle Ranch & Gypsum)

Scooter Slaughter, broker associate with Berkshire Hathaway HomeServices Colorado Properties, notes the down valley market buyer pool is still strong, but some buyers have been forced to put their searches on hold due to the higher interest rates. 

“Sellers can still take advantage of cashing out their home’s equity as values are holding steady at record levels,” said Slaughter. “Despite the higher interest rates, there is still strong buyer demand for homes in the low seven and under-seven figures.”

For buyers frustrated with limited inventory, Slaughter cites recent buyers who were looking in the $750K range. “These buyers kept losing out on bids and were getting frustrated,” said Slaughter. “The challenge – and opportunity – for buyers is to think outside the box. In the case of these recent buyers, a well-priced vacant lot became available that did not have an HOA and fell outside the design review board, so they could choose a modular home instead of stick built, allowing it to fit in their price range. As a result, they are getting a brand-new home that fits within their budget, location and lifestyle” said Slaughter.

The moral of these stories is the market is ever-changing and opportunities exist. This is where working with an experienced broker can make the difference between being frustrated and giving up or coming up with win-win solutions.

Editor’s note: 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.