Led's Take

What’s happening in the Vail Valley market?

Early Summer Update

Eagle County’s real estate market continues to hold its own as we move into the summer season. Despite ongoing economic uncertainty, geopolitical tensions, and fluctuating financial markets, sales activity and prices continue to reflect a solid market. May 31 year-to-date numbers for sold residential properties throughout Eagle County show an uptick in closings, 12.7% above the prior year, and break-even sold volume at $846 million. Interestingly, the average sales price and price per square foot each dropped,11.4% and 9.5% respectively. This is in large part due to fewer sales in our luxury, $5 million-plus niche, down 10 transactions and $100 million in volume. This appears to be a timing issue rather than a trend, and with several significant luxury properties currently under contract or in negotiation, I expect much of this gap to narrow as the summer progresses.

A Closer Look

One trend remains consistent: exceptional, one-of-a-kind properties continue to sell when priced appropriately. New construction properties are also selling well, reflective of the desire of many buyers to move right in and enjoy their home from day one. New developments throughout the Vail Valley are also experiencing strong interest. Frontgate in Avon is nearing sellout. The Apogean in Lionshead is down to its final two residences, priced $4,000–$4,500 per sq ft. Skjol in Avon has secured 54+ reservations to date. The Arcadian in Beaver Creek is now under construction and seeing early success. Prima Residences in Vail recently placed the first of four homes under contract, listed at $26M (approximately $5,500 per sq ft).

What does this mean to You?

Uncertainty is rarely welcome news in resort real estate, and today's economic and geopolitical picture has given some clients pause. Yet trends of the past 30-plus years in Vail Valley real estate reflect a consistent parallel with those of Wall Street, and I expect the same to hold true over the balance of the summer. Current activity levels are encouraging, and by mid-to-late July we should have a solid read on where this summer will land. Stay tuned, and as always, thank you for this opportunity to be of service.

If Selling

Low inventory, rising prices and solid demand combine to make this an opportune time to be on the market, should it be time for you to sell. This will be especially true over the next couple of months, February and March, as they represent “prime time” in our winter selling season. My encouragement would be to buff, polish and fully prepare your property for market, price it appropriately, and then make it as available as possible for Open Houses, previews and showings. Following these guidelines, you’ll best position yourself for a sale.

If Buying

Develop a “wish list” of items that are important to you before you start looking at property, including location (Vail or Beaver Creek? East Vail or West Vail?), desired amenities, views and any other attributes you can think of, along with the standard criteria of bedrooms, baths and square footage. Having a clear vision of what you are looking for will enable you to know it, when you see it, and then act accordingly!