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The local chatter is bittersweet, but I'll tell you about it anyway: if you own real estate in the Vail Valley, it’s hard to complain about this era in time. If you do not own property here but you wish to, you can complain about the post-pandemic market values. But then we must add context such as, ‘blue chips get bluer for a reason’. I hate that but it is the reality. Buying stock in Apple, Nike, Microsoft, Intel, etc. always seems too pricey and it always seems too late. But a year later, they’re worth more.
As usual for the summer marketing season, the number of units for sale has increased 20% since June 1. However, if we deduct the 50 units listed for sale which have not yet been built, you notice that we have much fewer units for sale today than one year ago. Therein lies the evidence: homeowners here are happy being home owners here. There is, of course, a portion of economically stuck homeowners. The Fed’s interest rate reduction seems imminent this year. That should affect our supply in a measurable way, but we won’t know how so until we get there.
Values continue to increase ‘a bit too rapidly’ because the selling competition is not stiff enough within most micro-markets/neighborhoods. Thus, there is little reason for a seller to be conservative with the listing price. But if the envelope is pushed too far…
The buyers are not biting on the overpriced properties. Aggressive list prices are not successful unless the setting and the condition are excellent. When they are…
Of the 165 units currently under contract, 50% have gone under contract within 21 days on market. This does not necessarily mean that these properties were priced perfectly, but it usually means it was priced in the right ballpark incentivizing the buyer to submit an offer which was then successfully negotiated.
"AND NOW LET'S DO THE NUMBERS"
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