The informal sales season is coming to an end and what we predicted three months ago has come to fruition. Interest rate hikes, while still at historic lows, have caused some pause in the market, but more so for primary home buyers than second or vacation home buyers.
As a result, sellers are more sensitive to market prices. Some adjustments are made by more serious sellers in order to attract buyers, especially as inventory levels increase. Thanks to creative lending and more realistic sellers in the market, deals are happening, but not at the blistering pace of the past few years.
As prices remain at high levels, buyers have more options and are more critical of properties, including price and condition than they were a year or two ago . Today’s sellers need to be nimble – but if the price, condition and location are right, demand is still high. Multiple offers on attractive homes are still going, albeit tempered.
Across the Valley, July and August were quieter than even the pre-pandemic years, although late August and September saw more activity with some ultra-luxury properties under contract. There is still a slight uptick in activity as we wave goodbye to summer and anticipate the arrival of winter and it seems to be happening – a welcome event that demonstrates more normal market activity and interest. .
Resort and luxury market
Alida Zwaan, associate broker and luxury collection specialist in the Vail/Lionshead office of Berkshire Hathaway HomeServices Colorado Properties, notes that when the buyer in the luxury market finds the right property, they bid and move on, as evidenced by the high-end home. resuming sales.
“Prices are stabilizing, which is attracting more buyers into this segment who are generally less influenced by interest rates,” Zwaan said. “There are still sellers who have not yet realized – or accepted – that the market is flattening. Homes that are overpriced are on the market. Only the most renovated properties with the best location and views sell for high prices.
Midvalley to downvalley
According to Scott Marino, a broker associated with the Eagle office of Berkshire Hathaway HomeServices Colorado Properties, the past few months have seen a trend toward healthier stocks.
“While last year we had mostly single-digit inventory in some markets, we saw more homes hitting the market this summer, including over 25 single-family homes in the Eagle area and 18 in Gypsum” , said Marino.
Marino also notes that while prices are still high, overpriced homes are falling, similar to the resort and luxury market. The most recent trend is for sellers to lower prices to try to sell their homes before the snow falls.
“Additional inventory also pushes homes to be on the market longer,” Marino said. “The five-to-seven-day market quote trend from the past is now 30-40 days. We are also seeing fewer local buyers or full-time residents, reflecting rising interest rates which further affects this buyer segment than the resort/luxury buyer. Overall, homes that are priced right are still seeing high demand and even multiple offers.”
Michael Slevin is the president and owner of Berkshire Hathaway HomeServices Colorado Properties, established by his father, John, 51 years ago. The company now has 12 offices in 10 communities, ranging from Summit and Eagle counties to the West Rim.
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