The positive real estate narrative that consumed the second half of 2020 continued through the first quarter of 2021 with Q1 sales in Eagle County up 53.88%. The increases also included average list price, up 15.49%, and average sales price up 17.18%. High demand in Eagle County remains the theme as new residents and local buyers throughout the valley continue to add pressure to inventory supplies.
While the second half of March 2020 was impacted by COVID uncertainty, the numbers don’t materially change the fact that 2021 saw continued momentum throughout the summer, fall and winter, including a surge of pending sales, closings and a heavy weight on inventory. Pending sales are up over 90% over Q1 2020, diminishing available inventory levels to half of what they were a year ago to end the quarter.
A slightly deeper dive into inventory shows where the demand and consequently the most affected areas are – the under $1M price point. At the end of this quarter, there were approximately 55 homes for sale – 17% of the available inventory. The positive news is that as the weather warms, the market should see an increase in available homes in all price ranges and areas to help meet the strong demand. Buyers financing homes should feel optimistic about interest rates remaining at historically low levels, helping to meet the rise in prices we have seen over the last several years.
An additional Eagle County benefit is there are several different markets, ranging from the resort areas of Vail and Beaver Creek to the down valley communities of Eagle and Gypsum. Each one offers its own unique attributes and different price point options, tailored to the needs, lifestyle interests and budgets of buyers.
Resort Market | Vail, Beaver Creek, Bachelor Gulch, Arrowhead, Cordillera
The resort market saw the largest sales increases, from 158% in Beaver Creek to 600% in Bachelor Gulch. Marla Hillerich, broker associate for Berkshire Hathaway HomeServices Colorado Properties’ Beaver Creek Villa Montane office, attributes much of the sales increase to greater demand from buyers in the $3M+ market, as well as existing homeowners making shifts in their residences. “We had a lot buyers emerge during the ski season this year,” said Hillerich. “Around Christmas there were 70 properties for sale in Beaver Creek and now there are 30. Inventory is not being replenished at the same rate it is being sold, though we hope to see more properties come on the market to fill buyer demand during the summer.”
In looking at who the buyers are and what’s motivating them to buy, Hillerich notes, “We have buyers both locally and from out-of-market that have fallen in love with the area. They decided the timing was right to buy and/or size up or down,” said Hillerich. “COVID has changed the way people do business and with the option to work virtually and be able to spend more time in the mountains, those on the fence decided this was the year to buy.”
Hillerich also notes that there is less competition among buyers in the $3M-$5M+ market. “There are a lot more buyers looking for properties under $2M or less, so the inventory typically moves faster,” said Hillerich.
Advice for sellers
Marla agrees there is no better time to sell. With limited inventory, anticipated low interest rates that are expected to continue, now is the time to capitalize on market gains. That being said, buyers are still very savvy and while demand is high, understanding the value of a home and what the market will bear are important factors in pricing a home. “It’s really important that sellers seek the advice of a knowledgeable broker to help them appropriately list and market their property and be ready to move quickly,” said Hillerich. “There are still a lot of cash offers out there and many buyers want close as soon as possible. Being able to negotiate contracts and offers is another valued added service experienced brokers can provide,” added Hillerich.
Advice for buyers
The landscape this year, compared to this time last year, paints a vastly different picture and there are no foreseeable signs that demand will slow. The market should open up to more homebuyers in the coming weeks and months as we head into summer.
Photo Captions:
50 Peak View, Bachelor Gulch
Boasting majestic mountain views, this ski-in, ski-out 2,603 sq. ft. 3 bed/4 bath Horizon Pass Lodge #410 condo, located at 50 Peak View in Bachelor Gulch, offers comfort and elegance with a large great room and large private deck. Recently sold for $3.3M.
62 Aspen Ridge Lane, Arrowhead
This 5 bed/6 bath, 5,652 sq. ft. single family home, located at 62 Aspen Ridge Lane in Arrowhead, is situated on a half-acre private homesite surrounded by Aspen, Spruce and Juniper trees. Listed for $4.5M.
