Big Hits Continue as the Summer Winds Down
True to course, the market continues to show strong activity as we move into the early fall season. Over the past few days, several high-end properties have been placed under contract, highlighted by the following...
Vail / Golf Course - 1183 Cabin Circle - Single Family - Listed at $5,900,000 / $942 sf
Vail / Golf Course - 2038 Sunburst - Single Family - Listed at $6,223,000 / $1,037 sf
Beaver Creek - 75 Village Walk - New Duplex - Listed at $6,800,000 / $1,257 sf
The two Vail Golf Course residences are each older homes / prime remodel candidates featuring unique locations and terrific views. 75 Village Walk is a flip, and was on the market but 19 days before the new buyer stepped in. Its original owner stands to pocket over $1 million on the sale.
Another notable Vail Village residence, 333 Beaver Dam Road, closed in mid-August for $8,550,000 / $1,845 sf. Built in 1987 and a likely candidate for a remodel, the home enjoys a terrific location in the midst of Vail's most acclaimed neighborhood.
The above transactions are but a precursor of things to come over the next several weeks, as buyers are now making final purchase decisions in preparation for the ski season ahead. In spite of what is occurring in many other markets across the country, the Vail Valley real estate market continues to demonstrate stability and bright prospects for continued growth.
What IS going on in the market?
As the summer season rolls into its final weeks, I am beginning to hear rumblings from fellow brokers that activity is slowing, things are down, the high end is off pace, etc. On the surface this would seem to be expected, given the national headlines featuring softening markets and a shortage of buyers, and further compounded by the recent volatility in the financial markets. It doesn't take long for these gloom and doom scenarios to cause consternation, especially if a broker has not sold his or her listings over the summer season!
The truth of the matter, however, is quite different. We remain in the midst of a very strong and solid real estate market in Eagle County, similar to many other luxury resort areas around the country. At the end of the first half, Eagle County sales volume was up 25% over last year's solid pace.
Another murmur that I hear is that our sales volume is up only because prices have risen so quickly over the past few years, and that the luxury niche is carrying the rest of our real estate market on its back. Once again, the numbers just don't back this up. The number of transactions through the end of June was down but 3%, essentially a break-even number. And while the high-end niche continues to be very active, up double digits almost across the board, properties priced under a million continue to sell.
So what is the real deal?
Unlike years ago when sales activity was concentrated mainly in Vail Village and Beaver Creek, our market is now as spread out as it is diverse, with significant transactions occurring from East Vail all the way to Gypsum. While a Vail Village broker might feel that activity is off track, in fact, record-setting sales may well be occurring up and down the Vail Valley. Buyers in our market have more attractive opportunities than ever before, and are finding many of these diverse sub-markets to be quite appealing and worthy of their investment.
Further augmenting the strength and depth of our market are the number of multi-million dollar closings that will soon begin to take place in Vail and Lionshead. 333 properties listed at $1 million and greater are currently under contract, representing a total listing value of $1.06 billion. Comprised mainly of new developments such as Forest Place, Arrabelle, Manor Vail and others, these properties reflect an average listing price of $3.19 million, and an average price per square foot of $1,152. These new properties are "raising the bar" throughout the valley, with very positive ramifications for the market. Our sales numbers will be bolstered well into the future, the value of older existing properties will continue to rise, and the base of committed homeowners throughout the Vail Valley will continue to increase.
What does this mean to the buyer of luxury real estate?
Unlike Denver, Miami, Las Vegas and other metropolitan areas which are experiencing softness in their markets, you should not expect to find an overabundance of sellers in the Vail Valley who are desperate to get out of their property. What you can expect is to be able to choose from a very attractive inventory of unique properties, to strike an agreement that is fair to you, and to enjoy your property for years to come.
So don't pay attention to the "background noise" of a softening market in the Vail Valley... it's just not a fact. DO pay attention to the wonderful opportunities that are currently available for your consideration. DO pay attention to the ongoing strength and depth of demand we are experiencing, and how this will affect values in a market of limited supply. And DO know that this is likely to be one of the most enjoyable acquisitions you will ever make, one which you and your family will value for a lifetime.
As predicted, one can already sense the surge of late-summer activity heating up. Over just the past week, four significant ski homes in Beaver Creek, Bachelor Gulch and Arrowhead have been placed under contract.
Arrowhead - 2300 Cresta - 10,000 sf single family - Listed at $9,500,000
Arrowhead - 2255 Cresta - 9,959 sf single family - Listed at $10,500,000
Bachelor Gulch - 65 Elkhorn - 10,090 sf single family - Listed at $8,875,000
Beaver Creek - 86 Village Walk - 4,396 sf duplex - Listed at $6,650,000
Addtionally, Lot 38 on Daybreak Ridge/Bachelor Gulch, just closed at $5.8 million. It wasn't too many years ago that
homes in Bachelor Gulch sold in the $5 million range! Recent homesite sales such as this indicate that prices of single family homes in Bachelor Gulch will continue to appreciate aggressively.
Stay tuned for additional updates as we move into the final busy weeks of the summer selling season. Thank you!
June sales figures are in, completing what was a terrific first half of the year. June's numbers reflected the highest monthly totals of the year, with over $332 million in county-wide sales volume, and 286 transactions. Total dollar volume now sits at over $1.56 billion in sales, up 25% over a year ago. If sales velocity continues at the current trend, we will establish a new record by year's end.
Large transactions setting the pace
The luxury niche continues to be the driving force in our market. Several significant transactions closed in the past few weeks, as you can see below.
95 Forest Road / Vail Single Family / $12,000,000 / $2,013 sf
4246 Columbine / East Vail Single Family / $7,525,000 / $897 sf
173 Strawberry Park Court / Beaver Creek Single Family / $13,500,000 / $1,352 sf
60 Village Walk / Beaver Creek Duplex / $5,995,000 / $1,144 sf
46 Village Walk / Beaver Creek Duplex / $6,395,000 / $1,220 sf
86 Village Walk / Beaver Creek Duplex / $4,995,000 / $1,136 sf
Ritz-Carlton #907 - Bachelor Gulch Condominium - $4,000,000 / $1,807 sf
Several other significant properties were placed under contract over June and July, highlighted by the following.
621 Forest Place / Vail Lionshead Single Family / $14,900,000 / $1,345 sf
333 Beaver Dam Road / Vail Single Family / $9,850,000 / $2,126 sf
Manor Vail #454 / Vail Condominium / $8,600,000 / $2,556 sf
2300 Cresta / Arrowhead Single Family / $9,500,000 / $950 sf
Year-to-date, 321 properties listed at $1 million and greater have been sold county-wide, as compared with 258 properties a year ago. Our average transaction year-to-date is just under $1.1 million.
What does this mean to you, the buyer?
In spite of the terrific year-to-date sales figures, our market is not in the midst of a huge run-up that will result in a crash. Rather, I see us in a period of long term, sustainable growth, interspersed with "breathing periods" of adjusting to new prices and fluctuating inventory levels. Current sales and pricing trends are reflective of a quality product (i.e., the Vail Valley), limited supply, and strong demand from a deep wellspring of saavy buyers.
While property is certainly moving, there remains a solid inventory from which to choose in many segments of the market. This is particularly true of the high end, single family / duplex market, where many unique and very special properties are currently available. Many of these are absolute, one-of-a-kind homes, whether due to an irreplaceable location, unparalleled quality and design, or all of the above.
If you have had your eye on a particular property, now is the time to act. Buyers will be here in force through mid-September, and they are here to make final purchase decisions. On the other hand, if you are willing to gamble, you might be advised to hold off until late September to bring in your offer.
Sellers of properties which have not gone under contract over the summer/early fall frequently become "antsy" at this point of the season, knowing that it will be another three months before buyers will be back in town. I have found this to be an effective time to negotiate more aggressively on property, taking advantage of this lull in seller psychology.
I only advise this strategy, however, if you are truly willing to gamble that the property you like will still be available at the end of the season. If losing it to another buyer will cause undue pain, then go ahead and take a run at it. Long term, you will be glad that you did, as there is no better place (in my admittedly-biased opinion!) to own real estate, and enjoy all that the Vail Valley has to offer!
Thank you for your interest, and for this opportunity to be of service.
