An investigation of the question that someone will inevitably ask when the numbers are good – “Are we ‘back’ yet: Has Real Estate recovered?” This is an archived edition of our weekly news brief. Visit Vail Valley Real Estate News for the latest from the Rocky Mountain Home Team!
Robust numbers and brisk business certainly reveal a healthy real estate market in Eagle County, and many have wondered if Vail Valley Real Estate is “back” yet. The obvious follow up is “back to what?” While Eagle County, like most of the country, felt the “bubble burst” of 2007, the real low point for the Vail Valley came in 2009, where closings fell to fewer than 200 for the first half of the year, and dollar volume barely cleared $200,000,000 for the same period.
In 2010, both those numbers more than doubled. Since that time, the number of transactions has steadily gone up every year through 2015. Dollar volume fluctuated for a few years before jumping in 2014 – newspaper articles from that time proclaimed the return of the Vail Valley Luxury Properties market, which had largely retreated from the market as values remained low or at least uncertain.
A quick look at Dollar Volume for the first half of every year for the past 10 years will show that the “recovery” is incomplete, but a significant part of that is due to a corresponding drop in transaction volume. In fact, price per square foot for Eagle County homes averaged $489 for the first six months of 2015, an increase over 2005 ($405) and 2006 ($456) as well as an upward tick from 2014 ($466). It’s not for nothing that many Eagle County homeowners saw higher property valuations this spring.
Of course, general trends are interesting and may help homeowners get a big-picture view, but in a diverse market like Eagle County, more local numbers are far more helpful in determining the extent of a recovery.
Want to know where your neighborhood stands? Contact Michael Routh for a look at the numbers for your neighborhood!