Vail Mountain is open and real estate is flourishing!
Winter is here! I am happy to announce we are kicking off winter with an early opening of Vail Mountain, November 14th and Beaver Creek on the 17th! There has been no shortage of activities during the shoulder season. Locals and visitors alike are enjoying a host of incredible seasonal events, spectacular restaurant specials, and other perks. Eagle County comes alive this time of year and it is truly magical. Stay tuned to my blog! I will be sharing with you exciting upcoming events.
The latest off-season numbers reflect what I have been saying all along. We are a bustling year-round market! The county has also been analyzing what other types of businesses will fit the Vail Valley to enhance our already successful luxury ski destination as referenced in the Vail Daily article: Economic diversity dominates State of the Valley discussion as towns, county look to move beyond tourism.
Sales activity shows that there is no sign of a slow-down in sight. The increasing number of buyers working remotely continues to give our housing market a boost, as more people are choosing the mountain lifestyle and making Eagle County their primary residence. Can you blame them?
Want to know more facts about Colorado? On a national, regional, and statewide scale, the economic strength of Colorado is apparent. People are moving their companies to major metro areas like Denver for a higher quality of life. Within two hours or less, front range people have discovered the Vail Valley is an ideal primary or secondary housing destination. Below I offer a quick breakdown of influences that continue to move the Eagle County real estate market in a positive direction.
1) On track to add more than 40,000 new jobs to the Denver area, a low unemployment rate, a diverse economy and nearly 1 million positions filled by sole proprietors.
2) The metro area ranks eighth for employment concentration of IT-software industry workers.
Nationally, home price appreciation is decreasing. In the Vail Valley we are unique as we have a limited amount of land available which equates to what I call “the real estate ladder” appreciation affect (see image below). There will be occasional depreciation price dips, but ultimately, the ladder continues in an upward trend. Also, the Vail Valley is a global economy and does not count on just one segment of the US market for business.
Starter homes are overall red hot nationally whereas the larger homes owned by the aging population are trending in a decreasing manner. Again, in our resort market, we are unique and still have families looking for their “legacy” type home for family gatherings. This aspect is very important, especially with growing families and grandchildren. The Vail Valley creates a wonderful environment for the whole family!
In general, rise of the Fed Policy rates often translates to higher interest rates. When interest rates rise, this can make an impact on the real estate purchasing power of a buyer. For instance, our Eagle County conforming loan is currently at $636,150. For simplicity sake, let’s take an example of a $600,000 loan. If interest rates are 4%, then the principle and interest payment is $3,007/mo, at 5% is $3,382/mo, and at 5.25% is $3,478/mo. With interest rates still at low rates compared to years past, it is a factor which is also helping keep our real estate market active.
This all contributes to be a great time to purchase a home or second home in our area.
Residential Real Estate Prices
3) Housing costs in Eagle County are indexed at 123.2, while most other consumer goods and services in the county fall slightly above or below the U.S. average, making housing the primary driver elevating local living expenses. As you can see in the table below, Eagle County housing costs are actually quite competitive with a number of other Colorado counties and their key metropolitan communities. The fact is, Vail Valley’s cost of living is comparable to, or in many cases, less than that found in many major metropolitan areas across the country.
County Key Community(s) Cost of Living Index Housing
Boulder County Boulder, Longmont 110.8 / 134.0
Denver County Denver 120.7 / 165.2
Douglas County Aurora, Littleton, Castle Rock 117.8 / 159.5
Eagle County Vail Valley 107.8 / 123.2
El Paso County Colorado Springs 106.9 / 122.8
Jefferson County Arvada, Golden, Lakewood 110.4 / 132.8
Larimer County Fort Collins 105.4 / 117.2
October Market Snapshot
Residential Activity between October 1st and 31st:
676 Current Active Listings
For November Only
158 Sold properties
79 New listings
Significant Transactions for October
Properties Price at $5 million or more:
1 sold for $8,200,000
2 new on market for $8,250,000 and $11,950,000
1 under contract for $8,250,000
1 new on the market for $7,350,000
1 under contract for $7,950,000
1 new on market for $11,295,000
8 properties went under contract and their list prices are as follows:
Vail Village has 2 properties for $8,100,000 and $16,759,000
Lionshead has 1 property for $9,950,000
Spraddle Creek has 1 property for$ 8,595,000
Potato Patch has 1 property for $5,699,000
Bachelor Gulch has 1 property for $10,200,000