Resort/Luxury Market
A broker for Berkshire Hathaway HomeServices Colorado Properties’ Vail Village office notes that the resort/luxury market, including Vail, Beaver Creek, Arrowhead, and Cordillera, continues to remain strong. “Properties in Vail Village as well as Beaver Creek and Arrowhead have all been moving when priced well,” the broker said. “If a seller over-reaches, they’re likely to sit on it.”
As an example, the broker cited a recent listing for a Vail Village home that started out at $34M. The home wasn’t receiving the interest anticipated, prompting the seller and broker to work together to adjust the price. Upon adjusting to $29.9M, the home now has five interested prospects, and they are in negotiations with two of the parties.
“The market is going to dictate the value, and today’s buyers won’t even make an offer if they think it’s overpriced,” the broker said. “It doesn’t matter if it’s at the lower end or the higher end. If a seller is serious about selling, they have to price to market.”
Down Valley
Overall, interest and activity in the mid- to down-valley markets, including Edwards, Eagle, Eagle Ranch, and Gypsum, continue to remain strong. The Gypsum office reports that Gypsum offers, despite low inventory, remain solid, especially in price ranges under $500,000. “The sweet spot for buyers looking in Eagle or Gypsum is between $500,000 to $600,000,” noted the office. “Buyers seem to be more confident in purchasing now due to the lower interest rates, but it’s also fueled by the sellers who are pricing their homes correctly.”
The office has been seeing price reductions every day. “Buyers are hesitant to make an offer on properties they think might be overpriced, not in great condition, or have been on the market for a while. Conversely, the homes that are priced right can see multiple offers.”
A case in point is a couple of recent properties that followed a sound pricing strategy. “These properties were only on the market for four days and received multiple offers,” the office shared.
One particular single-family home that was priced right (under $700K), received nine offers and sold for $25,000 over list price. Another listing has been on the market for 300 days and is still not under contract after at least two price reductions. “Today’s buyers get hesitant and then suspicious when homes are not priced right. A seller who prices their residence too high and then starts lowering it has buyers assuming there are inherent flaws. Buyers don’t want to take too many risks, no matter what the price point.”
