State of the Market
“Are home values dropping?”
It’s a question I’m still getting asked daily. As one appraiser stated, there is a difference between de-escalation and devaluation markets and currently, we’re in a de-escalation phase. Continue reading below for the why.
Don’t be fooled by price reductions! People are shocked every day when I tell them that inventory is still trending down and despite what it looks like on the surface, prices are continuing to hold steady. We remain in the classic economic state of supply vs. demand. As you can see by the graph above, inventory continues to be critically low. The reality is, we only have so much land which limits expansion and very few new build spec homes. Additionally, sales prices year-to-date are higher in 2022 than they have been in the last few years.
SINGLE FAMILY AVERAGE SOLD PRICES
(January 1 – September 14)
CONDOMINIUM AVERAGE SOLD PRICES
(January 1 – September 14)
The reductions that you’re seeing now are typically listings being priced over current fair market value which are needing to adjust (i.e. de-escalate) to the current market as buyers are more conscientious now than earlier this summer. At this point, currently we are not experiencing a downturn in the market, but rather an adjustment of aggressively priced properties.
For example, I just closed on a home for my buyers in Eagle-Vail which sold for $100,000 over asking with multiple competing offers. Because inventory is limited and this was a remodeled unit in a desirable area, when this property went live at fair market value, the demand for it was HIGH.
In this state of the market, every buyer search and seller journey require a truly researched plan of the micro market. Not just to a specific neighborhood, but even down to the street. An aggressively priced home can sit on the market on the same street as another one that receives multiple offers, simply because of the pricing strategy and/or condition of the property.
THE HIGH-END LUXURY MARKET
When we’re looking at the high-end luxury market ($5M+), 2022 sales volume is up 15% year-to-date over 2021 and a whopping 70% over the same time period in 2020. We’re seeing a bit of an activity spike in the ultra-high end market right now, so we will see how that shakes out towards the end of the year.
THE BOTTOM LINE
The bottom line is that unless you work with a professional who is aware of the micro market shifts, the 30,000-foot picture can oftentimes paint a different outlook than the reality on the ground. That’s where I come in. My clients are asking me every day about “the market slow down”, “price reductions” and “rising inventory”. It’s my job (and pleasure) to give them the most accurate picture of what’s really going on and then narrow it down to a current snapshot that is most relevant to them.
Data pulled from Vail Board of Realtors MLS on 9/14/2022 and is deemed reliable, but not guaranteed. Active inventory for all residential property types from January 1, 2020 through September 14, 2022 in Eagle County.
Fall is on the way – the temperatures have been dropping and the leaves are starting their transformation to their golden hue. This summer has been full of real estate transactions, open houses, community events and summertime activities. I’m trying to fit in some additional bike rides, golfing and hiking as much as I can before I dust off my skis!
As you may or may not know, giving back to the community is something that I’m very passionate about. I’ve been fortunate enough to host some incredible events in our home over the last few months with a diverse array of topics from Human Trafficking Awareness, Financing/Investment Relationships, Cooking & Conversations, Consciousness / Spirituality, and Bitcoin. My daughter Jade is continuing the theme of giving back by participating in this year’s annual Walk To End Alzheimer’s (see more info below).
The contemporary topic and/or question from my clients, and people in general, is about how the market is slowing down and prices are dropping. If you would like to read my own view on this, then I encourage you to read below. In September, my closings included two properties representing both the seller and buyer on a listing and a repeat buyer on another property. Two more properties are under contract; one with a Seller and one with a Buyer. Activity is increasing on my $7.1M, 3-bedroom ski residence in Vail as buyers are getting prepped for winter. This residence which is steps away from the Lionshead gondola has already grossed over $408K (December 2021-August 2022) of rental revenue.
May you too have had an enjoyable summer and getting ready to plan out those winter vacations…I hope to see you around town soon!
Jade’s Posse On The Path
If you know my daughter Jade (who is on the autistic spectrum), then you know that she has a heart of gold, loves to volunteer and give back to the community who has given so much to her over the years. This month is no exception as she will be participating in the Annual Walk to End Alzheimer’s on September 24th
If you feel called to support her on her mission, you can join her team (Jade’s Posse On The Path), or donate to help her reach her $2,000 goal – we’re 67% of the way there!
The Arrabelle at Vail Square #422 | Lionshead Village
3 Beds | 4 Baths | 2,241 Sq. Ft.
Luxury Ski Condo In The Heart of VailInstagram: @VailLuxuryRealEstate
The Arrabelle at Vail Sqaure #422 | Vail, Colorado
3 Beds | 4 Baths | 2,241 SF
Welcome to ''Lifestyle. Location. Livability'' at The Arrabelle at Vail Square. Residence #422 has a premier location in the lobby tower, providing convenient access to the rooftop pool and hot tub, the main floor lobby and restaurant, as well as the lower-level conference room area & business center. Impressive and consistent rental history for both the main unit and the lock-off suite. Enjoy the sunsets on the peaceful balcony while taking in views of Vail Mountain. This open-concept, one-level condo features 3 spacious bedrooms, each with their own en suite bathroom. The residence features a gourmet kitchen, refreshed furnishings, large dining and living room areas, and 3 fireplaces. The 3rd bedroom ''lock-off'' can be rented or used separately, serving as a junior suite with its own separate entrance (and secure connection to the main residence). Additional conveniences include a laundry closet, custom bench/cubbies/hooks to gear up and down each day, a custom owner's closet within the unit, and an owner's storage unit in the underground, secure garage. Amenities within The Arrabelle include: ski, bike and car valet; the lavish Rock Resorts 10,000 sq. ft. spa (including treatment rooms, steam, whirlpool, and sauna); state-of-the-art fitness center; full-service business center; rooftop pool and hot tubs, housekeeping and room service available; and shops and restaurants on-site. Everything from skiing, ski school, ice skating, and summer hiking and biking are steps from Residence #422. Simply put, nothing compares to the convenience, layout and luxury experience offered by Residence #422.
Amenities within The Arrabelle include: ski, bike and car valet; the lavish Rock Resorts 10,000 sq. ft. spa (including treatment rooms, steam, whirlpool, and sauna); state-of-the-art fitness center; full-service business center; rooftop pool and hot tubs, housekeeping and room service available; and shops and restaurants on-site. Everything from skiing, ski school, ice skating, and summer hiking and biking are steps from Residence #422. Simply put, nothing compares to the convenience, layout and luxury experience offered by Residence #422.