There seems to be concern about the current state of the market, but is now a good time to buy?
The short answer is yes. The Vail Valley is always in demand, and that fact remains, even with the uncertainty in today’s market.
It’s true that market indicators are shifting in a way that makes investors and buyers think twice, but we have to remember the last three years were extraordinary, unprecedented, and record-breaking in terms of demand and as a result, rising prices. The Vail Valley saw inventory shrink and buyers were snatching up properties before they even hit the MLS with multiple offers and bidding wars.
What we’re seeing today is a return to normalcy, and increased opportunities for buyers. In fact, now may be a great time to buy a home.
Yes, there is concern about the economy, the highest inflation in 40 years, and dramatically increased interest rates, but that does not mean our market is down. Not even close.
Recent analysis shows now is actually the best time to buy property nationwide. A combination of housing market conditions gives buyers the upper hand, including lower prices, more inventory, reduced competition, and more time to make decisions.
In Vail, inventory is up from 145 listings during the lows of the pandemic to over 300 properties today.
Buyers are in fact eager to invest before interest rates go up even more. It’s true, most high-end properties are not so mortgage sensitive, but high net-worth buyers are certainly aware of inflationary impact on the value of cash. Investing in real estate in an uncertain financial market is a smart move because your money is parked in a tangible asset as the value of cash fluctuates wildly. Buying power is diminishing by the day, no matter if you’re talking about gas, groceries, or stocks. Inventory has increased slightly, but we’re still seeing homes in desirable locations sell quickly.
Buyers suddenly have more options across all price points after a long wait, and demand is still very strong. Downvalley, in Eagle and Eagle Ranch for example, single-family listings are now starting under $1,000,000 as compared to almost $1,300,000 for single-family homes last winter, now with higher inventory.
Additionally, we are seeing a pullback in pricing in most markets due to the market slowdown and higher interest rates floating around 6% as compared to the almost too low rates recently seen. Don’t forget 6% used to be the norm.
Despite the less-than-cheerful financial reports, the fact is that now is a great time to invest in our valley, no matter your price point. Even during this time of uncertainty, your money is safe in the Vail Valley. Remember you’re not only investing in property, you’re buying a lifestyle and memories to last a lifetime. That’s a value that’s truly priceless.
Douglas Landin has been a broker with Slifer Smith & /Frampton for 28 years and has received many accolades including 2022 Real Trends America’s Best, Top 1.5% Brokers in the Country, and VBR Realtor of the Year. He has more than 550 listings sold. Reach out to Doug firstname.lastname@example.org or http://landinvail.com/.