Eagle County Real Estate Market Report: Right-priced homes fueling market activity

Eagle County and the Vail Valley’s residential real estate market continues to remain active. While this summer was not as robust as expected in terms of total sales — 103 sales for August 2024 vs. 119 for August 2023 – average list and sales prices continue to show gains. The average list price in August was up 6.6% and average sales price up 7.5% over August 2023.

Continued buyer demand and sellers pricing their homes to market value are keeping list to sales ratios at 98%. More sellers are now pricing their homes correctly and this is paying off with a drop in median days on market, down to 22.5 for August 2024, compared to 41 days in July of this year.

  As we head into fall, Eagle County’s real estate market continues to impress with listings and pending sales near their peak for the year, spurred by declining interest rates. September and October are expected to continue to be busy given the new listing and pending sales volume, and buyers looking to close before the start of ski season.

What the current market means for buyers and sellers:

Resort/Luxury Market 

Craig Denton, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Vail Village office, notes 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,” said Denton. “If a seller overreaches, they’re likely to sit on it.”

As an example, Denton cites 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 Denton 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,” said Denton. “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.”

Mid- to Down Valley 

Overall, interest and activity in the mid- to down valley markets, including Edwards, Eagle, Eagle Ranch and Gypsum, continue to remain strong. According to Laurie Slaughter, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Gypsum office, despite low inventory, activity is still good, especially in price ranges under $900,000. “The sweet spot for buyers looking in Eagle or Gypsum is between $600,000 to $800,000,” said Slaughter. “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.”

Slaughter says that her office is 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,” said Slaughter.

A case in point are a couple recent properties that followed a sound pricing strategy. “These properties were only on the market for four days and received multiple offers,” said Slaughter.

One 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,” said Slaughter. “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.”

Michael Slevin is the president and owner of Berkshire Hathaway HomeServices Colorado Properties, started by his father, John, 53 years ago. The company has grown to 12 offices in 10 Western Slope and mountain resort communities, spanning from Grand and Eagle Counties to the Western Slope. The company also became the network’s top performing Colorado brokerage firm in 2023.