The Snow Is Here!
As we kick off the new year, 2023 is now behind us, and we are on the downhill course on our way into 2024. Vail Mountain has been blessed with an impressive amount of snowfall, with a whopping 37″ in the past 7 days. Despite the chilly temperatures, the conditions are perfect for some exhilarating turns on the slopes with fresh Colorado “Champagne” powder. With more snow in the forecast, we anticipate a surge in bookings as people are eager to experience our winter wonderland.
In the world of real estate, let’s reflect on the three key takeaways from 2023. Firstly, inventory was on a downward trend towards the end of December, dropping to under 300 active properties for a week. Currently, it’s just hovering slightly above 300. As the holiday hustle and bustle has subsided, we’re noticing a shift in focus towards real estate. February and March mark the peak season for visitors to our valley, and their excitement for exploring properties is palpable.
Recently, I had the pleasure of attending a dynamic two-day event with 50 colleagues from across the country. The conversations were all too familiar – low inventory continues to be a nationwide issue for highly desirable areas. Properties that are newer or have been remodeled are attracting more attention, with some even receiving multiple offers. On the other hand, aggressively priced homes are experiencing price reductions.
We’d love to hear your thoughts and predictions for 2024. Feel free to reach out and share your insights.
And for those who are looking for a highly curated experience, I have an exciting announcement…
A Partnership With The World’s Best Ultra-Luxury Rental Collection
Cuvée goes well beyond renting homes. They are masters of creating and curating extraordinary journeys, milestone celebrations, and authentic experiences throughout the destinations we call home. I’m thrilled to announce to be a partner with Cuvée in the Vail Valley! They are seeking a select group of like-minded homeowners to become part of their ultra-luxury rental community in the Vail area. Currently there are approximately 20 exquisite properties in coveted locations throughout Vail, Beaver Creek and Bachelor Gulch and are looking to expand with a few select properties. If you would like to inquire if your property qualifies to be in the portfolio or would like to purchase a property to be placed in this niche portfolio, please contact me to find out more.
PROTECT + ENHANCE + MONETIZE
Every home in the Cuvée collection is held to elite standards. Their offering is comprised of over 100 ultra-luxury properties that range from private penthouses at The Ritz-Carlton Bachelor Gulch and luxury estates at The Four Seasons Hualalai to a 430-acre private island in the Bahamas. Cuvée boasts the highest guest satisfaction rating in the industry with the numbers to prove it: With nearly 100% of surveys collected, the average rating is 4.96 out of 5 stars across five key categories.
“As owners ourselves, managing multi-million dollar estates is our specialty and we artfully guide you to add value to your home. Join our community of select like-minded homeowners who have invested tremendously in their ultra-luxury properties and have a passion for maintaining them to the highest possible standard.”
If you have an ultra-luxury property that may be a great fit for the Cuvée portfolio, would like to purchase a property to be placed in their portfolio collection, or find out more about the experiences they offer in the areas below, please reach out to me for a brief conversation!
AFRICA • TUSCANY • LAKE CUOMO • SPAIN • ST. BARTHS • BAHAMAS • PUNTA MITA • LOS CABOS • THE HAMPTONS • ASPEN • BEAVER CREEK • VAIL • TELLURIDE • SUN VALLEY • HAWAII
While Land Title’s official numbers for Eagle County in 2023 are still being compiled, here are three of my personal key take-aways for last year’s real estate market.
#1 – 49% of Transactions Were Financed In Some Way
According to the record transactions in the MLS, 49% of all residential transactions in 2023 were financed in some way (i.e. conventional loans, FHA loans or VA loans). This may come as a surprise as people often assume that in a high-end resort town, cash buyers would be a significant majority. Of the recorded MLS transactions, we saw just 52% of closings were financed with cash. Although that rate is still significantly higher than the national average of about 20% (NAR), it is interesting to note the number of financed properties given the current interest rates.
#2 – Inventory Remains Low
Not to be a broken record, but inventory continues to remain historically low. As you can see from the graphic below, Eagle County has been on a downward trend of inventory for the past five years. Subsequently, that equates to lower sales numbers, however it doesn’t necessarily mean that prices are trending downward as well. In fact, average sold prices in Eagle County have gone up an average of 16% year-over-year since 2019.
#3 – Less Is More
In 2023, a shift was observed in the residential real estate market, with over 60% of transactions involving properties under 2,500 square feet. This marks a departure from the trend of large legacy homes that dominated the market over a decade ago. Instead, there has been a growing preference for more modestly sized homes that prioritize the outdoor lifestyle, appealing to those seeking to downsize. Additionally, a niche market has emerged for those seeking multi-generational legacy homes as well as monetizing properties (see Cuvée Model above). We are also starting to see a generational exchange of wealth, which will require the younger generation to effectively monetize and manage this asset. Failure to do so may increase the likelihood of the next generation selling the property.
Andie’s Current Listings
Inside The Numbers
As we move into a new year, the goals you want to accomplish in 2024 are top of mind. With real estate being one of the greatest investments your clients will make, strategy and market knowledge will embolden their decision-making in the coming year. As the market continues to change, our Quarterly Market Reports are designed to help you stay on top of it all. The right insights are crucial and could help get your client into their dream home, and help you reach your goals, faster.
The Quarterly Market Reports are interactive with hyperlinks or QR codes providing real-time data, powered by LiveBy, making them a useful tool in providing accurate information.
I am pleased to introduce the 2024 Luxury Outlook report, our fourth annual in-depth exploration of the high-end residential markets across the globe. Following several years of residential real estate frenzy, the report reveals that buyers have begun to acclimate to a new normal of higher interest rates, with high-end home seekers expanding their searches to more parts of the world. It also explores the trends shaping real estate investment decisions in the year ahead, from the intergenerational transfer of wealth, to pinpointing parts of the world where tax incentives are increasingly enticing.