Eagle County Real Estate Market Report: The return of fundamentals
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Our market is shifting back to more typical fundamentals. Price, location, and condition factors, elements that our residential real estate market deviated from at the height of the pandemic era, are returning. Interest rates, too, are back to more normal fluctuations with some additional trending down in the last few months in anticipation of macroeconomic shifts.
All to say, we are returning to a more normal state and predictable buyer and seller activity in the market.
Compared to 2023, Eagle County residential real estate activity through the third quarter of 2024 shows unit sales up 7.62% and dollar volume up 9.15%. These gains demonstrate continued strength in the market as we enter the winter season. Buyers remain actively engaged, but also critical of pricing.
With strength in equity markets and more favorable interest rates, 2025 should be an active year for both the luxury/resort and mid- to downvalley markets. Additionally, home price appreciation is expected to be modest nationwide. The dual mix of lowered interest rates (and potential to move down further) and more inventory continuing to come to market are expected to create attractive opportunities for buyers as well as sellers looking to make a move.
While this is generally a quieter time in the market, activity still exists and those who have been on the sidelines may find this time of year advantageous for making a move.
Luxury/resort market
Mark Weinreich, broker associate with Berkshire Hathaway HomeServices Colorado Properties’ Beaver Creek Villa Montane office, notes that in the luxury/resort market, where most offers are still cash deals, buyers tend to be not as interest rate sensitive, but news sensitive.
“Equity markets, gas price fluctuations, and other economic shifts high or low affect the psyche,” Weinreich said. “There’s a lot of money out there, as well as wealth being transferred from generation to generation. If these buyers find what they’re looking for, they will make the move.”
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That being said, the luxury/resort buyer is not going to pay for more than what they believe a property is worth.
“The right property can make a record price,” Weinreich said. “The caveat is that it must be deemed right for the buyer based on price, location, and condition. Where it gets tricky, is understanding each buyer’s unique mindset on where they place value and what they deem as exceptional can vary greatly. This is where working with the right experienced broker can be the difference between getting an offer quickly or having it sit on the market.”
As a case in point, Weinreich recently worked with a Vail seller who owned an original Vail townhome. There was no question the next buyer would need to do a total remodel — the benefit being that since it was a townhome, it would be an interior refresh vs. brick-and-mortar construction.
“The home was in a great location with great views,” Weinreich said. “The buyers saw the value in the setting even though they knew they would need to invest more in the home. We priced it correctly. It was not a deal, but a diamond in the rough, which was enough for the buyers.”
Midvalley, downalley
Looking at our more local seller and buyer markets from Edwards down to Gypsum, Thalia Leiva, broker associate with Berkshire Hathaway HomeServices Colorado Properties’ Gypsum office, notes that the majority of sellers who are listing their homes are doing so due to relocation versus down or upsizing. This can create more urgency and room to negotiate. As with the luxury market, homes that are priced right are selling quickly.
“Buyers will dictate market value,” Leiva said. “We have been doing some slightly below market value listings and seeing multiple offers above list price. If buyers see value, they’ll push price to get the home.”
Leiva cites a recent Gypsum home that was listed for $505,000. It was well-positioned as a starter home, with the added benefit of no HOA. It went on the market on a Friday and by that Sunday had four offers, one cash. The sellers went with a financed offer, over the cash offer.
“Cash is not always the best offer for a seller as it can come with less favorable terms,” Leiva said. “Working with local lenders can often lead to more favorable interest rates and fewer loan restrictions. This is because local lenders keep the loans in-house vs. a broker who works for a large company that will likely sell off the loan.”
An inside tip from Leiva is that due to the usual election year slowdown in the residential real estate market activity, this time period offers savvy buyers and sellers a unique opportunity to move now.
“If you’re thinking about buying or selling, this is a great time, with more options and less competition,” Leiva said.
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.
