Vail Valley Real Estate News for Feb. 9, 2018

The Vail Valley Board of Realtors Multiple Listing Service recorded 72 residential property sales in January 2018, matching the Jan 2016 total and an increase of one over the 2017 total. These surprisingly even totals allow us to make some interesting comparisons between the three months. 

(This is an archived edition of our regular news brief. Visit our Vail Valley Real Estate News page for the latest from the Rocky Mountain Home Team.)

For example, while January 2018 saw the lowest average sale price per square foot of the three ($428), those properties sold for an average of 95.5 percent of list price. In 2017 and 2016 the average sale price was $535 and $454 per square foot, respectively, but properties were selling for under 95.2 percent of list price in both years.

Long time readers may suspect that the 2017 average was distorted by some huge sales at the top of the market – and the numbers support that suspicion.  The highest recorded sale of 2017 was a Vail Village Single Family Home for $23 Million. Two additional properties sold for over $10 Million and nine homes sold for over $2 Million.  In a pool of only 71 properties, big numbers like that are going to pump up the average.

The biggest sale of 2018, on the other hand, was a $13.5 Million single family home in Strawberry Park. One additional home sold for over $6 Million, and seven more sold over the $2 Million mark. That difference at the top would have impacted those monthly averages even harder if demand was not rising overall. That demand is reflected not only in the uptick in list-to-sale price, but also in the average days on market, which fell from 173 in 2016 to 169 in 2017 and 155 in 2018.

In any real estate market – but especially in a market as select and diverse as our own – it is important to remember that raw averages rarely tell a complete story. What may look at first glance like a 20% reduction in value is little more than a demonstration of the impact a few huge sales at the top of the market can have. In fact, in most sections of the Eagle County market, demand is high and prices are going up.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s