It appears that the shifting trends are finally catching up to buyers and sellers of Eagle County real estate.
Home prices nationwide are starting to drift downward, and home sellers are forced to lower the list price or negotiate with buyers amid soaring interest rates and less demand. So far, Eagle County real estate has bucked the trend but the latest data shows that the Vail Valley may be heading in the same direction.
According to an article in The Hill, housing experts are steeling for a potential correction in the housing market.
“We are seeing that now as home values at the national level have fallen a bit from their June peak, part of a rebalancing of the housing market as prospective buyers are pulling back because of soaring costs and sellers are reacting by lowering their list price or accepting a lower offer on their home,” Zillow senior economist Jeff Tucker told The Hill in an email.
After years of elevated real estate sales, record valuations and low inventory levels in Eagle County, the Colorado Association of Realtors’ October report also illustrates a changing market in both the single-family and multi-family home residential real estate.
Townhome and Condos are Seeing Big Changes
While the median price of townhomes and condos still saw nearly a 10 percent increase in price year-over-year ($879,000 vs. $965,000), there was a drop of 12 percent since last month. In September of this year, the median price of a multifamily home was $1,100,000 while in October, it decreased to $965,000.
Home buyers are starting to enjoy greater ability to negotiate the final price, too, as the percentage of list price received by the seller dipped to 97 percent.
Furthermore, days on market have increased a whopping 125 percent since last year. At the end of October, homes were typically on the market for 63 days compared to 28 in 2021. The 63 days also shows a big jump from last month when properties were on the market 43 days.
And finally, inventory has soared. In October 2021, there were 108 multi-family units for sale; last month, the figure was boosted to 152.
Single Family Homes Hold Firm in Price; Days on Market, Inventory Show Increases
In October 2021, the median sale price of a single-family home was $1,850,000 compared to $1,779,000 last month, a dip of just 4 percent.
However, the number of days it takes to sell has increased 52 percent from last year. It now takes an average of 73 days to go under contract compared to 48 (Oct. 2021). Inventory of homes has also increased by 28 percent – at the end of October 2022, there were 199 homes for sale.
Like multifamily home buyers, purchasers of single-family homes are also gaining traction and are able to negotiate on price. Home sellers are typically getting 97 percent of the listing price.
Usaj Realty is Ready to Help with Your Real Estate Needs
If you are considering buying or selling a home in the Vail Valley, contact Matt Wilson or Haley Dyer. Usaj Realty offers personalized service to make any real estate transaction a smooth and easy experience.
