Bachelor Gulch 2022 Recap & 2023 Predictions
Bachelor Gulch 2022 Market Recap
Here is a synopsis of the real estate that occurred in the luxurious Bachelor Gulch community in 2022. Plus what 2023 may look like going forward. Bachelor Gulch sits in a bubble and it differentiates itself certainly from a lot of the other gated communities in the Vail Valley. Heading into 2023, we could see changes in the way the luxury buyer is going to be approaching purchasing in 2023.
In a December 30th article, the New York Post reported that even high-end luxury homes are not immune from the US housing market ongoing slump. That's according to the latest data released by the real estate firm, Redfin Sales. Luxury homes defined as properties that are estimated to be in the top 5% based on market value, plummeted by 38.1% in a three month period ending November 30th, compared to that same time a year ago. Since Redfin began tracking it in 2012, Long Island, Nassau County, posted the largest decline of the ritzy home sales in the entire country with volume transactions plummeting 68.6% compared to a year ago. We are seeing changes that are going on in the real estate market, even on the high end.
Why is this happening? Mainly because of the sagging stock market, inflation, and obviously the interest rates. In another article, the Federal Reserve policymakers agreed that a sustained period of restricted policy is what is going to be needed to curb at inflation and until they hit their target of 2%, we are going to remain watching our interest rates rise. They admitted that this is going to take, possibly take quite some time in order to get there. The Bachelor Gulch community is following this very trend.
In 2021, 54 residential closings took place. That ranged from little studio at the Ritz Carlton Bachelor's Gulch for $560,000 to a 16 million home on Horizon. Compared to 2022, we only had 25 residential closings, which is less than half than a year ago. This is because 2022 was the year of sharp appreciation and lack of inventory, that being the reason why we had so much appreciation. In 2021, some of the people that purchased turned around in 2022, listed their property sold them, and some of them made over a million dollars net in less than 12 months from their purchase. 2021 generated 261 million of real estate transactions versus 2022, which almost did about 122 million. Remember that 2021 was the buying frenzy, and 2022 was the appreciation wave when everybody was trying to capitalize on that huge appreciation because of low inventory. As enter 2023, we still have a low inventory issue.
Currently, Bachelor Gulch only has five active listings that are available for purchase. So my prediction is that in 2023, we are going to see longer days on market and sellers are going to have to show patience. The best choice that one can make going into 2023 is to hire a professional real estate broker who is constantly following the most current trends and that understands what leading indicators and lagging indicators are doing. Someone who can implement the most innovative strategies. Now, more than ever, you need to have someone who can remove uncertainty through fantastic communication and who is able to prepare to handle objections and obstacles to successfully get your real estate across the finish line.
If you have any questions about the content that I just discussed, or if you would like to know more about any of the real estate transactions that took place over the last 24 months, or if you'd like to just talk about your real estate and what your goals might be, I would love for you to reach out and give me a ring.