The 2023 Eagle County real estate market is proving to be the year of transition. The effects of low inventory and higher interest rates continue to impact and shape our market through the first half of this year. Year-to-date, dollar volume in Eagle County is down 35% and unit sales are down 38%. There are pockets of the market that continue to demonstrate resiliency and overall, the lower inventory has helped keep prices stable.

We are now in an environment where, if historical patterns hold, we should see a peak in new inventory in the coming weeks. This is good news for buyers. Additionally, economists are forecasting interest rates to gradually decline as the Fed slows rate increases. If you are contemplating a move this summer, this is a great time to list your home. Buyer demand is strong, and we have seen listings -- when priced to the current market -- sell and some with multiple offers.

Historic fundamentals are coming into view and the market here locally and nationally has weathered significant changes due to the macro-impacts of the last few years of the pandemic. The good news is we can look forward to a more balanced and active market toward the end of this year and into 2024.

What the current market means for buyers and sellers:

Vail/Resort Market

Craig Denton, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Vail Village office and a 45-year industry veteran notes that overall, resort properties are still coming to market, being sold, and at a more comfortable pace. The residences that are selling quickly are ones that have been renovated or are new construction -- and priced correctly. These are the properties that are still moving quickly and occasionally, seeing multiple offers.

“We’re still seeing sellers who are living in past and pricing their home at the boom year levels, when buyers were clamoring for any property at any price,” said Denton. “These sellers are finding their properties sitting for a long time and then if they want or need to sell, forced to adjust. There is definitely more negotiating going on but the residences that are way overpriced are just sitting,”  said Denton.

As for buyer trends, Denton sees three types. The ones who are more value oriented, others who are opportunistic and those who are waiting for some sort of market correction. “Historically, waiting has never been the best option,” said Denton. “Waiting just means you’ll either pay more later, or when the right property comes along, continue battling with multiple offers. Buy when you’re willing and able to enjoy the lifestyle.”

As the stats indicate, there are still more buyers than properties for sale in the luxury market, even in the upper end. And there is still a lot of cash circulating around. “It’s like the stock market,” said Denton.  “Hard to predict the bottom. One thing has remained the same in the upper market levels: most sellers don’t have to sell, and the buyers don’t have to buy. It’s a want, not a need, in the resort luxury market,” Denton added.

Mid- to Down Valley

When it comes to interest rates, the recent increases appear to be having a greater impact on the under $2M buyer.  “Yes, mortgage rates are higher than they have been in recent history,” said Rick Messmer, managing broker for Berkshire Hathaway HomeServices Colorado Properties’ Eagle office, who concurs with Denton that whether it’s cash or finance, if a buyer finds the right home that fits their needs, grab it when you can. “There may be a time in the future when you can change the rate to your benefit. However, if that home checks most, or all, of your boxes and you don’t move on it, it may not be there again. Just be sure to buy within your means, not what a lender says you can afford,” Messmer advises.

The idea or hope that prices are going to plummet as more properties come on the market is not happening. Yes, if a seller overprices a home, a reduction may need to occur to get it sold. However, priced correctly and marketed well, homes are often still selling above list price. “Price your home to today’s market and you will sell. Miss the price and you will sit, potentially for a long time,” said Messmer.

The good news for buyers is late July and early August typically see the highest peak in listing inventory, offering more options. But it’s a short window of opportunity. “As summer fades, so will inventory numbers. Find something that meets as many of your criteria as you can and lock it down,” said Messmer.

Michael Slevin is the president and owner of Berkshire Hathaway HomeServices Colorado Properties, started by his father, John, 52 years ago. The company has grown to 12 offices in 10 communities, spanning from Grand and Eagle Counties to the Western Slope.