Vail Valley Housing Market September 2022
Vail Valley Real Estate Fall 2022
The Vail Valley real estate market and the market conditions are good. Plain and simple. It's a good time to buy. It's a good time to sell. The wheels aren't coming off anymore. We're not breaking any records currently. That is due to a lot of different things.
We're thinking about the stock market or lack thereof. We're thinking about interest rates and how they're rising. We're talking about inflation and in some cases, uncertainty. And those are the reasons why we have balanced out our market at this point. We are on a much better and even playing field than what we were a year ago. There's more inventory for buyers to choose from. There's less multi offer situations. The escalation clauses have essentially disappeared. Do you remember what the escalation clauses were? Escalation clause where somebody would write in the contract that a buyer is willing to pay X amount over the list price over any bonafide offer up to X. That was so buyers would actually have a chance at scoring a home back in the day when 4, 8, 10, 18 offers would come in on the same day. Now, we have a more reasonable seller who is ready to have their broker negotiate on their behalf.
Here is an analogy:
Everybody remembers the almighty real estate tsunami, right? Do you remember where the sellers were sitting out in the real estate ocean, standing on top of their houses ready to hang 10? on that awesome insane wave that was just caressing and going crazy, and some of them had that chance to ride that all the way into the end. They had fun riding that sudden fast moving wave. But some of those sellers were standing out on their roof of their home in that real estate ocean and they missed that fun of riding that huge wave. Right? But what did they do? All they did is they had to just paddle to a new area that has different waves now. And what does that mean? Adjusting their price just a bit to successfully ride the new set of waves. Being a buyer in our resort market is much different than a permanent residential community.
The resort market are usually leans towards a buyer who are second, sometimes third homeowners, and for these people and although around the world we are seeing the inflation and increasing interest rates and cities who are reporting losses and value across the entire market, there is a leveling off of our transactions taking place in the valley.
We are not seeing any big differences in what's really going on besides less transactions, but the ones that are happening are really good. We have 321 active listings to choose from right now with some being new construction.
Our least expensive in the whole entire valley is $150,000 up in Leadville. Our most expensive listing is in the milddle of Vail Village at 27.9 million bucks. There are lots to choose from and that is what the difference is from a year ago.We have 189 under contract and that's including a $42 million, 30,000 square foot home here in the Vail Valley. When thinking about those 189, remember there is a lot of new construction. 77 of those 189 are actually under contract and their deposits are hard. And I think that that's a real testament to how strong our resort market is doing up here in the Rocky Mountains of Colorado. When you think about somebody locking in something that isn't even going to close for two more years, and their earnest money is already hard. It's a good understanding that we're not really going anywhere. There's no indicators nationwide that point toward what happened in 2008. This is going to be an opportunity for buyers to achieve their goals and sellers to achieve their goals as well.
There are still fantastic lending options if you don't want to reach into your pocket for a couple million bucks. Local banks are very willing to help facilitate buyers.
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