38460 Highway 6 #428 Avon
A few years ago, the shoulder season dictated the pace of Eagle County's market. Always lively during the winter months, sales and real estate showings generally decline as the mountains close and local residents (including brokers) take a much-needed break before summer. The same was true in the fall and before the new season started. Those cycles have generally disappeared and we are becoming more of a year-round community in both visitation and real estate.
This means that market “timing” is no longer as important as it used to be. Buyer demand is so high that “waiting until the summer/winter season” becomes less important than many other factors that influence activity. Both local properties and second home properties are currently fetching top dollar prices, with some still receiving multiple offers. It should be noted that properties that enable this type of activity are priced to the market from the outset, are well-positioned given their location and conditions, and these factors combine to make them attractive to buyers. It's about producing favorable real estate results for sellers.
Eagle County market numbers for early 2024 show a surge in sales, but many of the closed homes are located in two large projects in Avon that were signed on several years ago: Frontgate and One Riverfront. This is the result. These sales have pushed up the numbers, but the leading indicators (active listings and pending sales) are also higher than they were a year or two ago, indicating an active and active market across all price ranges and sectors. It has been shown to be robust.
What the current market means for buyers and sellers:
Luxury/resort market
Nate Hall, a certified luxury specialist and broker associate with Berkshire Hathaway HomeServices Colorado Properties, sees strong buyer demand and strong buyer demand in resort/luxury communities such as Vail, Beaver Creek, Cordillera and Arrowhead. He points out that limited inventory is leading to increased competition among buyers. Limited inventory relative to demand has led to steady price increases for sellers, making it a favorable time for sellers to make the most of their investments.
“The appeal of these mountain communities as vacation destinations and investment opportunities continues to attract affluent buyers looking for second homes or investment properties,” Hall says. “Current market conditions favor sellers, but it is properties that are well-priced (in line with market value), well-located, and updated that generate quick and sometimes multiple offer scenarios. Despite the high demand, today's buyers are smart and don't overpay. ”
Hall points out that a key factor for buyers in the luxury market is being prepared to act quickly on competitive offers. In this case, working with an experienced local broker can be the difference between your offer being accepted and losing out to other buyers.
“Understanding market dynamics and building relationships with other brokers gives buyers an advantage,” says Hall. “Make sure your broker isn't one of those brokers that says, 'We don't have any inventory, we're just waiting for items to show up on the MLS.' This is an active market; Our job as brokers is to help our customers find and acquire the property they want.”
Down Valley/Local Market
With interest rates more stable and expected to be lowered by the end of this year, buyers are coming to the realization that rates are unlikely to return to the historic lows of the past few years. Down Valley markets such as Eagle, Eagle Ranch and Gypsum are also seeing increased buyer activity. Inventory levels are also trending upwards, and activity from both buyers and sellers is expected to continue to increase as we head into the busy summer season.
Paula Fisher, a brokerage associate at Berkshire Hathaway HomeServices Colorado Properties, which serves local residents and those considering relocating, said the biggest recent change is not to wait. He says this is due to an increase in the number of buyers who are deciding to quit. “There are a lot of buyers in the market, and more and more people are recognizing that there's not going to be a big change in the market or interest rates,” Fisher said. “Once buyers find the right home and can afford the mortgage payments, they shouldn’t wait.”
Fisher points out that he's also seeing sellers move on to the next chapter in their lives. “Sellers in the Down Valley and local markets are more willing to negotiate than they were a few years ago, making it a more attractive market for buyers. When it comes to interest rates, even if rates go down, you still have the opportunity to refinance later. “There always has been. Historically, the value of real estate has always increased over time, through ups and downs, making it a good investment,” Fisher added.
Bottom line (as any financial advisor might tell you): Don't try to time the market. If you do what is in your best interest within your deadline, you will have the opportunity to take action. The market could benefit from increased inventory to meet buyer demand, but there are many options at most price points. Sellers who choose to start trading at any time of the year will see the activity firsthand through shows and offers.
Michael Slevin is president and owner of Berkshire Hathaway HomeServices Colorado Properties, which his father, John, started 53 years ago. The company has grown to 12 offices in 10 Western Slope counties and mountain resort communities from Grand and Eagle counties to Western Slope counties.
