The arrival of the July 4th weekend marks the beginning of the summer selling season in the Vail Valley, with sales activity over the past two months but a precursor to that which will occur between now and the end of September. Seller’s are rapidly bringing properties to market, doing everything they can to make them as appealing as possible. Buyers, on the other hand, are gearing up for what will likely be a fun and enjoyable twelve weeks of looking at real estate!

Further establishing the fact that real estate is local, not national, and debunking the trends being touted in national publications, our market continues to establish itself as one of the best in the country. The latest available numbers continue to demonstrate solid activity throughout the Vail Valley. April, 2007 was the best April on record with almost $234 million in sales and 221 total transactions, and was the fourth straight month that Eagle County experienced record-setting volume. Average sales prices once again came in at over $1 million, bringing the year-to-date average sales price for all transactions in Eagle County to $1,054,708.

The luxury niche of the market continues to be the driving force throughout the valley. Nine homes priced above $5 million have sold since April 1st, with two in prestigious Strawberry Park closing in April for over $10 million apiece.

Total sales dollar volume was up 27% at the end of April when compared to 2006. The overall number of transactions is holding firm, tallying 2% above last year. Steady demand and limited supply of product have continued to result in rising prices throughout the market.

This summer will be an excellent time to look at real estate in Vail, as your selections are ample. Excluding new projects such as Solaris, Arrabelle, the Ritz Carlton Residences, Manor Vail and the Four Seasons, all of which are several months or more from delivery, there are currently 62 properties available in Vail priced at $3 million or more. These represent a wide range of properties and locations, from homes on Forest and Beaver Dam Roads in the heart of the village, to beautiful creekside residences in East and West Vail.

Focusing in on Vail Village and Lionshead, there are currently 39 condominium properties available at an average price of $1,485/sf. Ranging from luxurious properties at The Lodge and Riverhouse, to fixer-uppers at Village Inn Plaza, there are a number of properties ready and available to accommodate your family this ski season.

The single family and luxury duplex market in Vail Village and Lionshead also has an attractive inventory of available properties. Seven new/under construction residences are currently being offered, at an average price of appx $2,100/sf. Older (though very nice!) existing residences are averaging over $1,791/sf.

All of the aforementioned new projects are well under way, and within the next two years we will experience a wave of new property never before seen in Vail Village and Lionshead. All projects are selling very well, at prices ranging up to $3,000/sf and averaging over $2,100/sf. While most still offer an attractive selection of available residences, I expect many of these new developments to sell out between now and year’s end. Please call for more details.

The condominium market in Beaver Creek is currently well stocked with opportunities for buyers to consider. Many new properties have come on the market over the past few weeks, and are poised for a summer sale. Average price for condos, townhomes and duplexes currently runs $960/sf.

The single family market in Beaver Creek also offers a number of very attractive homes, though with but 20 custom single family homes currently on the market (excluding enclave residences) inventory is down from the norm of appx 25 – 30 residences. Yet the available selection is intriguing, ranging from remodel opportunities on Holden Road to one of the finest residences in the Vail Valley, situated in Strawberry Park, priced at almost $18 million.

Bachelor Gulch presents an interesting picture to buyers as the summer approaches. Both the condominium and single family markets are very tight. Single family inventory is down appx 50%, with but six residences currently available at an average price of $13 million / $1,405 sf. The condo market offers a good mix of properties, yet again, inventory is down from the norm. Only thirteen existing condominium residences are currently available, ranging from $1.2 million for a terrific one bedroom residence at Horizon Pass Lodge, up to a $6.2 million luxury condominium at the Ritz Carlton. Average price per square foot currently runs appx $1,232/sf.

I am often asked what the future holds for our market, i.e., where will we be in five or ten years? While lacking a crystal ball (if only!), a confluence of several factors is currently in play that should help ensure a strong run well into the future.

Among the most important of these, the baby boomer segment of our population is now into the prime years for buying a second home. The stock market continues to do well, as does the overall economy. Wall Street bonuses have been extraordinary. Interest rates remain at very attractive levels. The largest transfer of wealth from one generation to another is just beginning to take place. Each of these are important in their own right, and when combined, provide a deep sense of confidence in the direction of our market.

You have a wonderful selection of ski properties to choose from if buying this summer. That said, inventory of highly desirable properties is somewhat down in several segments, particularly in Bachelor Gulch. With the current lag time for delivery of new product, especially in Vail and Lionshead, existing properties should experience strong demand.

Bottom line… if you see a property that makes sense for you and your family, I encourage you to buy. For whatever reason, particularly in active markets such as ours, it oftentimes seems that the moment one buyer becomes interested in a specific property, there are also others “out there” who swoop in and make the situation competitive.

When combined with the world class skiing, golf, and other activities available in the Vail Valley, along with our wealth of supporting amenities and easy access, it is no wonder that our area is experiencing unprecedented demand. These are also why I believe that the market will continue to enjoy solid growth for years to come. I encourage you to join us, and make the Vail Valley your mountain home. You will be glad that you did!