Cordillera Real Estate Market Recap & Looking Ahead at 2023
Cordillera Real Estate 2022 Recap & 2023 Predictions
Here is a real estate synopsis for the Cordillera community for 2022, and more importantly how these 2022 sales and stats are going to affect the value of your home going forward in 2023.
As we head into 2023, we could see change in the way that the luxury buyer is approaching purchasing real estate. There was an article in the New York Post which came out on December 30th and it cited that even the high-end luxury homes aren't immune from the US housing market’s ongoing slump. They got this information from the latest data that was released by the real estate compay, Redfin. It went on to say that sales of luxury homes, which is the top 5% of our of our market value, plummeted a whopping 38.1% in a three month period ending November 30th of last year compared to that same time period just a year ago. That is actually the largest decline for luxury real estate since Redfin began tracking the market in 2012.
Some areas of the country, like markets in California, San Jose, Anaheim, and LA County as well as Nassau County of New York; they are seeing these home sales on the luxury level plummet up to 68% in the same period a year ago.The reason for the slowdown is this is the slagging stock market, inflation, and interest rates. Yesterday, the Federal Reserve policy makers announced that they intend to put restrictive policy in place for a sustained period of time to curb inflation. Unfortunately, the way that they intend to do that is to continue to push the interest rates up to reach their goal of a 2%. This will take some time to achieve and because of that, we are going to see buyers being a bite more hesitant about purchasing real estate. Whether it is here in our resort community or elsewhere in the country on the luxury level.
Now we will look at the Cordillera market to see how it is trending with the rest of the country. In 2021, there were 57 homes that reached the closing table which is a good number. The least expensive was a Kensington Grain over on the divide side that closed at 1.3 million. The most expensive was a beautiful home in Beard and Meadows that closed at 6.5 million which was a beautiful remodel, and it closed at $863 a square foot. All of those 57 homes, the average square foot price for everything that sold, landed at $552 in 2020.
This year, however, in 2022, there was only 35 successful closings in Cordillera. That's 22 homes less than the previous year. The lowest sale was another Kensington but that lowest sale was 1.845 million. Cordillera actually broke a record for the most expensive home ever out on Granite Springs Trail which closed for 10 million. The average square foot in 2022 rose from $552 to $690 a square foot, and that is $138 a square foot increase just over 12 months. Why did this happen? 2021 was obviously the year of the buying frenzy. If you recall, multiple offers buyers making offers with zero contingencies versus 2022 which was the year of their appreciation. That was due to the low inventory but still strong demand and that resulted in higher prices from a year ago. As we enter 2023, here are some predictions. Our Cordillera buyer is still going to buy secondary luxury homes. This market is more resilient than that of the primary home luxury community like Greenwich, Connecticut, like Nassau County of New York, or LA County, for instance.
Individuals are still purchasing the lifestyle and that is important to know. However, buyers are going to take more time to weigh their options. They're going to be a little bit pickier before jumping in. Thus, we will see longer days on the market. Sellers are going to have to show some patience. We will continue to see lower than average inventory. Presently there are 18 homes that are available in Cordillera right now but 10 of the 18 are north of $4 million. In conclusion, the best choice that you can make in 2023 if you were thinking about selling your home, is to hire a professional realtor who is consistently implementing the most current trends in this ever-changing market. Find a realtor who is following the most current news of leading indicators of lagging indicators and who implements the best innovative strategies and data used in the business.
Now more than ever, you need someone who can remove uncertainty through really strong communication skills and prepare to handle objections and obstacles to successfully achieve your real estate goals.