With the winter season (mostly) behind us and looking ahead to spring and summer, it’s important to note that closed sales (down from 2022) and a slower market pace are not reflective of buyer demand. Low inventory levels continue to put pressure on sales. As a more historic market comes into focus, there should be a relief for pent-up demand as inventory levels generally increase when the winter season and school years end and the weather warms.
The upside for sellers is that prices continue to remain strong throughout the valley and those who are pricing at market value are still receiving high interest and close to list price (and in some cases, still over with multiple offers). Days on the market in April also declined from March and the list price to sale price ratio increased. Those are both indications of a strong market for sellers.
Although there are macro signs of an economic slowdown on the horizon, the real estate market may likely buck the trend. Historically, prices have not meaningfully declined, and many markets may continue to see prices increase, though not at the pace of the past few years. Mortgage interest rates have also fallen in the last six recessions, which would be a benefit to home buyers and those looking to move within the valley.
What it means for buyers and sellers:
According to Kyle Denton, associate broker with Berkshire Hathaway HomeServices Colorado Properties’ Vail Village office, buyers should find a growing number of opportunities, particularly as the peak summer selling season approaches. Denton notes that sellers are becoming more strategic with their pricing, depending on their overall strategy and sales timeframe. What does this mean for buyers?
“There is some potential room for negotiation,” Denton said. “While sellers might be hesitant to accept a below-list price offer as they might be perceived as being priced over the market, it doesn’t mean they aren’t open to negotiating. This is where knowing the right questions to ask can yield the best outcome.”
As for sellers, Denton said activity is typically a little slower coming out of ski season and to be patient.
“As we head into June and the summer months we should see increased buyer interest and activity. That being said, we are competing with growing international travel interest and some economic uncertainty, which is causing buyers to be more methodical in their analysis and overall decision-making process,” Denton said. “Valid and accurate analysis of the current market conditions relative to each property is paramount and could mean the difference between a successful sale and your property sitting on the market longer than anticipated.”