The market has settled into its historic (pre-COVID-19) pattern with inventory rising and expected to increase into early August. As of the third week of July 2024, there are approximately 465 residential properties currently for sale, up 25% from a year ago. This bodes well for buyers looking to make a move before the end of summer and the start of the winter season.
Generally, there is a two to three-week lag in buyer activity when new properties come to market so August should tell the story of how active our market will be through the balance of the summer and fall seasons. There is strong evidence that demand will continue to remain high. Sought-after properties that are priced at market value are garnering multiple offers.
This includes starter homes in our bedroom and downvalley communities to the multi-million-dollar estate homes on the slopes. For serious sellers, increased inventory and more options for buyers underscores the importance of pricing your property to the market. While home prices continue to rise on a macro level, the unique neighborhoods of Eagle County behave differently and are tied to a myriad of factors.
Marla Hillerich, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Beaver Creek Lodge and Beaver Creek Villa Montane offices, notes that while inventory is on the rise, it’s still about 50% lower than historic averages. “As a buyer, if you’re looking for a desirable property, be ready to move quickly, particularly if it’s a newer or renovated home,” said Hillerich. One client Hillerich worked with is a couple who had been looking during COVID-19 but hit the pause button as they didn’t want to settle on a home just to get into the market.
They recently decided to get back involved and found what they wanted — a fully renovated condo in Avon. Despite higher interest rates, they decided to finance, knowing that over time, they could refinance. “It was a smooth deal because they had all their pre-approvals in place, so when they found the home they wanted, we put in an offer and closed quickly,” Hillerich said.
As for sellers in this market, Hillerich advises that if you’re on the fence about whether to list your home, the time is now. “Prices have remained strong, but we’re seeing some leveling off, including some pricing resistance from buyers and increasing days on market,” Hillerich said. “Properties that are priced to market are still selling pretty quickly.
” Eagle County’s mid- to downvalley markets, including Edwards, Eagle, Eagle Ranch and Gypsum are cases in point about the ever-changing dynamics of our different markets. Rick Messmer, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Eagle Ranch office, says that the market is continuing to improve for buyers, with more options and more competitive pricing, including 44 new listings and 15 price reductions in just one week earlier this month. “For the past several years, buyers have been struggling to find even one property that met a few of their criteria, which put many in a holding pattern.
Now, multiple properties check many of their boxes which is causing a reverse holding pattern — too many options to choose from,” Messmer said. Messmer cautions buyers to avoid the paralysis by analysis trap. “There is no such thing as the perfect property or time to buy.
If a home meets your primary criteria in terms of location, cost, and amenities, buy it,” he said. While Eagle County’s markets still favor sellers, both Messmer and Hillerich note that sellers still need to be aware of the changing market. This includes being cognizant of pricing.
“If the property you are going to bring to market is unique, and in a desirable location for the buyer pool, you may still be able to set the market and be the highest-priced home ever sold in your neighborhood,” Messmer said. “However, if your property is not that property, you must price it to today’s market conditions. With the right marketing and exposure, you can have buyers competing and pushing your price up — but only if the market — and buyers — feel you are underpriced.
Otherwise, your property will likely sit and be forced into a price reduction.” This also includes lots for sale; well-priced land, when it is considered the right lot, will sell quickly. Messmer cites recent sellers who knew they had a special lot in Eagle Ranch.
Instead of pushing the list price, they priced the lot in an attempt to attract as many buyers as possible — and it worked. The lot was listed for $299,000 and sold for $330,000. “With the right price and marketing in place, all the current trends indicate your property will sell,” Messmer said.
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