Ask a broker: look back, look forward
As we start another year with a few feet of fresh snow and the perfect postcard-like holiday season that has made the resorts of Vail the world-famous destination that it is today, the real estate market remains incredibly strong. .
The simple economics of limited supply and growing demand continue to drive numbers to record highs in many hill station communities across our state, but that’s especially true here in the Vail Valley.
The Vail Valley is a prominent mountain community, and the lifestyle that accompanies land ownership will appeal to buyers. Our customers want to put down roots and spend more time here, as evidenced by the robust absorption of all types of properties.
For example, at the start of 2021 there was a stock of 4.3 months, and in December the absorption gave a stock of 1.4 months. And despite a low inventory, the dollar volume sold in 2021 will likely exceed the record number of 2020.
Pandemic trends continue to push people away from urban centers and mountain communities like the Vail Valley. We have seen second homes turn into primary homes and people move into our valley part time. Now that we have moved from the office boardroom to the virtual boardroom, people are leaving their metropolitan way of life to live in a mountain town, a place where they can spend time enjoying our mountain valleys. .
As one of our brokers, Tina Vardaman has often said, “The pandemic has crystallized the desire of people to balance their work and family life in a healthy and safe environment. Ski resort towns have felt the migration of these new owners motivated to move.
Focus on the future
As we look to the future, what does our Vail Valley and the real estate market hold? We expect a strong 2022. As “location neutral” professionals spend more time in Eagle County, the trend towards part-time residency will continue.
Likewise, low inventories and strong demand will remain strong in the new year. We anticipate the construction of new single-family homes as well as a very robust presale market for luxury condominiums, such as Legacy at Vail Square as well as One Riverfront Condominiums in Avon which is proposed to launch in 2022 by the Development Sales division of Slifer. Smith & Frampton.
And while the Vail Valley was originally designed to be a resort destination, it is clearly emerging as a vibrant mountain community where locals are more involved in shaping the future. With that, we’ll continue to see new stores, fine dining, and year-round amenities opening up from Vail to Gypsum.
As broker Dana Correia reflects, the million dollar question in 2022 is whether “now” is a good time to buy and if prices will continue to rise. Prices can moderate at some level, but truly unique properties will continue to be in demand and command these high listing prices.
“When it comes to the price, people need to be clear about their long-term goals,” Correia said. “If this is a lifestyle purchase and you find a home you want to settle into, then it’s worth grabbing it. You might be paying a higher price now, but with interest rates as low as they are now, the cost balances out in the end. Profiting from market entry now will pay off in the future. If it is an investment, also recognize that the home is an investment in the lifestyle and that it will never lose value. Historically, no matter what the real estate market does, Vail will always be a desirable place to own a home. You cannot see the views of your stock portfolio.
Development will continue to evolve downstream. Likewise, in desirable and established upvalley communities with an incredibly limited inventory, remodels and renovations will be on the rise.
For example, Vardaman and his team just listed a three-bedroom condominium in an exclusive building in Vail Village that has been maintained by its original owner for almost 40 years.
“Although in need of updating to bring it up to modern standards and style, the house enjoys an A + ‘beachfront’ location just steps from the gondola as well as world class shopping and dining of the city, ”she said. “We already have a lot of interest and most potential buyers see it as a rare opportunity to acquire a heritage home for their family”
As these unprecedented times continue to create unexpected opportunities and trends, one thing remains the same: Slifer Smith & Frampton was born in the Vail Valley and is woven into the fabric of this community.
Over 60 years ago, Rod Slifer, Vail’s first real estate broker, saw the potential of our valley. And as we celebrate our 60th anniversary in 2022, it will be the same vision, foresight and innovation that will guide SSF and the Vail Valley for the next 60 years.
Matt Fitzgerald is the president of SSF Vail Valley and the employing broker. During his 20-plus year career in the Vail Valley, Fitzgerald has been directly involved in the marketing and sale of a number of premier Vail properties. He was a member of the Vail’s New Dawn sales teams during the Lionshead redevelopment from 2004 with Gore Creek Place, The Arrabelle at Vail Square and Ritz Carlton Residences. Most recently, Fitzgerald was the listing broker for The Lion. He received the prestigious Golden Eagle Award for Closed Business in the top 10 of all Slifer Smith & Frampton brokers and has long been the top producer for the Lionshead office. He can be contacted at [email protected].