|
The market conditions over the course of 2023 were as close to balanced as we’ve seen since 2019.
The values that have set in over the past year are the new normal. For now.
For most of the year, across price segments, the market did not favor the buyer nor the seller, aka, balance. A list price must now be reasonable to succeed; aggressive list price strategy does not result in a swift sale; a buyer can negotiate from a list price and succeed. (There is so much more to describing a balanced market, you’re lucky I’ve learned to minimize my word count.)
What has transpired, how the market has changed, is not exactly new news; the 'entry level' price points of 2022 began dissipating about a year ago and generally speaking, they are now extinct. The entry price into nearly every property type and neighborhood has risen by more than ten percent.
These rapidly increased values in conjunction with the existing interest rates will take more time for house-hunters to acclimate to but history shows us it will happen.
The high price of real estate, in and of itself, has never caused the Vail Valley engine to stop running. The interest rate has indeed caused the engine speed to slow but that will rev up as soon as the interest rate revs down. The irony is that if -when- the interest rate comes down, demand for homes will increase and it may push the values again.
...so, these elevated property values and interest rates suck if you’ve been wanting to buy or make an even trade; and positive if you are content with what you own. I could pontificate in both directions, but I believe this to be the most simple and accurate perspective: investing in an affluent marketplace is more reliable than investing in one that is not.
The crystal ball: I do not foresee any market circumstance that causes property values to decline anytime soon. (Yes, I know it should not put that in writing, but people always ask and that is the widely held belief).
"And now for a look at the numbers"... TO ENLARGE, SCROLL OVER AND CLICK
| 
