How Much Did Vail Real Estate Increase By Last Year?
2021 Real Estate Market: What Happened Last Year
Vail Daily came out with a great article today. They were discussing the real estate market for 2021 in which our Vail Valley last year did 4.3 billion in sales. We had 615 million of real estate transactions just done in Vail Village alone. If you think about that 4.3 billion and the twenty-seven hundred and ninety-five transactions that occurred to achieve that number of 4.3 billion, 42% of the 4.3 billion was done in cash.
So, 42% of 4.3 billion is 1,806 million. That is just so crazy, right? So, how did this happen? Where did all this cash come from? Well, for one, we had a big 10 year run now for the stock market. We've seen a lot of great new wealth that has come into the marketplace.
The people who already had all that money in place, they're just borrowing cash from their lending institution. Thus, closing their transactions in cash, then turning around and getting a regular good old-fashioned mortgage to close on the property.
Now, why did they do that? They do that because of the fact that they are looking strong as a buyer when they are a cash buyer because our sellers, they love cash, and it is less stress and there's less opportunity for somebody to bail out on a deal if there's no loan. If there's no appraisal, then no hiccups that go along with the loan process.
We also had a big splurge in and lot sales. This past year we had 354 land lot sales. So what is that going to tell us? It tells us that we're going to see a lot newer construction that is going to be coming to the Vail Valley. The year prior there was only 180 land transactions that took place.
We practically doubled that number in just a single year here. Another thing to think about when you are that cash buyer is thinking about getting creative with your real estate broker and make sure you choose a good buyer's broker to help you.
Having help with that transaction is key because in this day and age you have to get very, very creative. There are multiple offers come in on properties, and in order for you to be the chosen one, you really have to get smart. I've seen transactions where we have our big, long sales contracts with all of our dates and deadlines, and there's only two deadlines in the whole.
Earnest money, deadline, closing date so that means that they are basically waiving the ability to object to things like title, appraisal, inspection, HOA documents, due diligence documents, or a possible special assessment because all they want to do is pay with cash and close.
That looks really exciting to a seller so the more creative you can get with your offer, the better chances you are going to have in getting your offer accepted. We still have a very challenging market as far as inventory goes so when something does come on the market, you have to show some patience because you're not going to always get the first deal or the second deal or the third deal. But if you stay on track and your buyer's broker is working hard for you, I can guarantee that eventually the one is going to come along that is going to fit your lifestyle and budget perfectly.