When the Eagle County real estate market recorded nearly $ 3.5 billion in sales in 2020, a lot of people thought, âSurely that can’t happen again in 2021.â These people were wrong.
As of September 30, the end of the third quarter of the year, the county’s sales volume was just over $ 2.9 billion, so another year of $ 3 billion looks likely.
Transactions are also on the verge of crossing the 2,572 sales mark in 2020.
All of these measures and a continuing shortage of inventory helped push prices up.
According to the latest data from Land title guarantee company., the average price of single-family homes in Eagle is up 23% from the first three quarters of 2020. The average price of a multi-family unit in EagleVail is up 20% over the same period.
Michael Slevin, owner and chairman of Berkshire Hathaway HomeServices Colorado Properties, said the market surge that began in earnest in June 2020 actually started in the months leading up to the COVID-19 pandemic in March of the same. year.
âThere was real pressure for people to make decisions about their lifestyle,â Slevin said. âThe pandemic has accelerated a trend that was already happening. “
People made the choice to work remotely and decided to take advantage of technology to live in desirable places.
“People don’t wait”
âPeople don’t wait any longer,â Slevin said, adding that in some cases people move first and then decide how they’re going to work.
As is generally the case in Eagle County, a relative handful of premium home sales have tended to drive up both the overall dollar volume and the average sale price. September’s total was in part attributable to 12 sales over $ 5 million. These sales represented more than $ 117 million of the month’s $ 454 million in volume.
Given the relatively tight supply of housing, strong demand has pushed up prices. But this upward trend may start to stabilize.
Steffen Mehnert, the team leader at the local branch of Keller Williams Realty, said he was witnessing a shift towards a more “healthy and balanced” market.
Mehnert said recent figures showed that of all homes listed for less than $ 5 million, 20% saw their prices drop. The days when people paid more than the asking price for houses may be over, at least for now, Mehnert said.
The competition remains
As the days of market data increases in the local multiple listings service, Mehnert added that there is still “aggressive competition” for some properties, especially those priced under $ 1 million.
Although prices may stabilize in certain sectors, the market remains difficult to penetrate for first-time buyers.
âMy heart goes outâ to these buyers, Mehnert said.
Slevin noted that the programs in Eagle County and the towns of Vail and Avon make homes more accessible to some buyers. And, he added, potential buyers must continue to prepare.
But demand doesn’t seem to be slackening much at the moment. And, Slevin said, remote workers can be a big part of the off-station economy that the valley has been trying to develop for years.
âTechnology has created its own industry, with people able to live, work, and raise families without necessarily creating the brick and mortar we expected 15 years ago,â Slevin said. While other industries may still come to the valley, the valley’s “critical need” for year-round activity has been largely met by remote working, he added.
And the people who come to the valley for recreation, culture, and other amenities aren’t likely to change anytime soon.
But, Mehnert added, the market continues to be difficult for many to acquire.
“It’s more and more difficult,” he said.