Despite the abrupt change to how all of us usually go about life and business in March, the first quarter for Real Estate in the Valley reaffirmed several trends that we have been seeing over the past two years.
First, the lack of available residential inventory is causing a reduction in the number of residential sales and is continuing to push prices for available homes up. The average number of days on market, and the discount from a list price to a sales price, are both down significantly.
Second, as a result of the first item (above), the number of vacant land sales has increased significantly. While prices are still below the price levels from 2002 -2007, existing land listings are selling at less of a discount than a year ago and there has been an increase in the pricing of new inventory coming to market.
In general, price levels in most property categories, and in most areas of the valley, are on the rise but have not hit pre-recession highs experienced in the run up to 2008.
How do I interpret what is going on here? In very general terms I believe that if you are a buyer, property in this Valley is still a value when compared to peer resort areas. If you are a seller, this is a good time to sell as long as you have good guidance on pricing.
All of the above being said, the pandemic is having a tremendous impact on the economies of the U.S. and the world. As an integral and significant part of any economy, Real Estate has been affected, too. The early impacts appear to be concentrated in the lending practices of financial institutions; the long term impact is yet to be seen.
For now, check out the Valley’s first quarter real estate statistics below.
- Vacant land sales, volume and avg. sales are up significantly.
- Condos sales volume and avg. sales price are up significantly.
- The number of luxury sales ($2.5M and above) has increased.
- Sotheby’s International Realty (SIR) corporate data shows that in March 2020 year-over-year property searches for Mountain properties across all SIR websites are up as follows:
Searches containing “Mountain Lifestyles” up 21%
Searches containing “Mountain Views” up 38%