Overall Market Slows - Positive Signs Emerging
Since the onset of the stock market decline and inflation and interest rate levels rising this spring, the overall Eagle County real estate market activity levels have been slowing. While it is almost unfair to compare today's market to the harried state of 2021, the numbers in November of this year compared to both 2021 and pre-pandemic November of 2019 demonstrate a marked shift. In the valley, residential sales in November dropped 48% from a year ago and 36% from 2019. While prices have remained elevated due to lower inventory and resort sales, the market as a whole is experiencing the effects of a variety of factors - but there are signs that things are beginning to come into balance .
Most economists say that we have likely seen the peak of interest rates and inflation and both will slowly continue to come down - with interest rates remaining below our historic norms and allowing more buyers to enter the market and make moves within it. Buyers hesitant to purchase "at the top of the market" now have more purchasing power than a few months ago but because supply remains tight, should not expect deeply discounted homes - rather more options and less competition.
For sellers looking to make a move, the good news is that buyers are watching and waiting intently. Homes priced to the market are selling quickly as evidenced by the fact that days on market for homes sold in November declined by 25% compared to October. Interest is high and while buyers may be waiting for the proverbial "bottom", so too are others and if the right property comes to market, it's best to make a move when it does and negotiate a market price versus waiting. Homes are selling at 97.76% of their last list price so there is now room and opportunity to negotiate.
As always, our dynamic market is very geographically and price-niche sensitive. What is happening in the resorts may not mirror the valley floor and bedroom communities. Let's talk about your specific interest and create a plan unique for you. I am always here to help.
Beyond the market, the early season snow has been great! The valley has transformed for the holidays and there is excitement in the air. It is a special time of year and I hope you are able to enjoy all the activities, events and recreational opportunities our area has to offer.