Roaring Fork Valley Real Estate Update - May 2020
As we enter into a new era, post the COVID-19 Stay-at-Home Order, I thought it would be helpful to provide an update on real estate activity here in the Roaring Fork Valley. Things are looking up! The weather has gotten much warmer, golf courses are opening and the general atmosphere around town is much more energetic and optimistic.
As many of you know, Pitkin County has had a much stricter Stay-at-Home Order than many of the other counties in Colorado. The 14 day quarantine rule for visitors coming to Pitkin County was lifted last week, so that is a huge relief. From the sounds of it, many people who had cancelled their trip to Aspen are now looking to find ways to come and are making summer plans. We have seen a significant increased interest in vacation rentals because hotel occupancy rates may be limited most of the summer. That means that visitors that do come will likely be here for several weeks or months, instead of just a few days. Overall, the cancellation of the major events in Aspen and Snowmass, like Food & Wine, and the slow opening of restaurants means that town will be much quieter, but many of us are looking forward to that and still expecting plenty of visitors seeking the outdoors and a less crowded environment.
Below are a few helpful links including the Pitkin County Roadmap to Reopening and the Aspen Times article outlining what the reopening entails. You’ll also find my own summary of the real estate activity here the Valley.
REAL ESTATE ACTIVITY.
As was the case about a month ago, the primary homeowner market in the down valley area is still very active, perhaps even more aggressively than it was before the pandemic. The remittance of showings preempted an uptick in listing inventory in the past week or so that has caused a flurry of showing activity, especially in the $700,000 and below price range. Sellers are commanding and holding on to high prices and buyers that were on hold during the stay at home order are coming out of the woods at full sprint. It appears that prices in the primary homeowner market are on the rise again, at least for the short term. For example, last weekend, I showed two different buyers four condos/duplexes in Carbondale and Basalt (all under $600,000) that had come on the market on Friday. As of the following Tuesday, three of those four homes are under contract already. I suspect those will close at or over asking price due to multiple offers.
The secondary/luxury market ($1.5 million +), especially in Aspen and Snowmass, is much quieter and experiencing a very different sales environment. Buyers are hoping to score a deal are making some offers, but most are at 40% – 50% below asking price. For now, most sellers are standing their ground and waiting to see what happens. So far, sales activity in Aspen and Snowmass has slowed significantly, but we are optimistic that as more visitors start to come to the valley in the coming weeks, sales will resume. It will be interesting to see if prices in the secondary/luxury market start to come down as days on market linger into the 3rd quarter this year.
SHOWINGS & OPEN HOUSES.
Showings in most of Colorado were permitted again as of April 27th. So, showings in Eagle and Garfield Counties resumed a few weeks ago. Pitkin County finally lifted their stay at home order last Saturday, May 9th, so showings in the Aspen and Snowmass areas have resumed, albeit cautiously. Masks and gloves are required. Showings are limited to no more than 5 people. Open houses and broker caravans are still not permitted for the time being.
INTEREST RATES.
As many of you know, interest rates for the past year have been considerably low and have dipped even lower in the past few months. Last year, the average 30 year fixed interest rate was 4.23%; as of yesterday it is 3.13%. Here is yesterday’s graph from Mortgage News Daily for the past 20 days:
If you are considering a refinance or home purchase, I highly suggest reaching out to your lender and mortgage companies for more information. If you need any local recommendations, please let me know!
INCREASED INTEREST IN RURAL & REMOTE LISTINGS.
The buzz around the broker community is that there is suddenly a lot of city buyers circulating around rural and mountain towns like ours with smaller communities where it is easier to enjoy the outdoors privately and safely. There is talk about an urban exodus, especially from the Denver/Front Range areas, as well as big cities like New York and Chicago. The systems and processes that allowed people to work from home during the pandemic will carry on into the future, allowing corporate professionals the opportunity to live in rural areas for the first time. We may see an influx of visitors and new homeowners from metro markets, especially those properties with acreage or on the outskirts of town.
CONSIDERATIONS FOR BUYERS.
Expect to wear masks and gloves at showings for a while. The absence of open houses means that the exploration of homes has to be a little more formal, scheduled and intimate. Interest rates are still incredibly low, providing a great opportunity to buy right now. If you are in the primary homeowner market, be prepared and pre-qualified with a bank or mortgage lender. Increased buyer demand may mean that you don’t have a lot of time to deliberate and that offers have to be made quickly and swiftly.
CONSIDERATIONS FOR SELLERS.
The broker community is taking the social distancing precautions very seriously and requiring masks and gloves at all showings. We are finding that buyers are more comfortable visiting vacant homes, whenever possible. Realtors are going to great lengths to make sure that buyer and seller are comfortable in the home, especially those that are occupied. For example, listing brokers may prepare a home for a showing, but wait outside instead of accompanying the tour inside and then disinfect countertops, doorknobs and light switches afterwards.
Such low inventory mid-Valley, especially in the $700,000 and under price range has generated incredibly high demand. If you are thinking about selling, now may be a great time.
The other good news is that for now, secondary homeowner/luxury prices in Aspen and Snowmass are holding at pre-pandemic levels. I was on an all-women conference call yesterday with a local appraiser and she reported that there have been very few “discounted” sales in Aspen or Snowmass so far. In fact, there have been very few sales at all. That could change in the next few months, but for now, many brokers are reporting that sellers are still waiting to see what happens before making price adjustments.
If the above information seems conflicting, it is. We are in an unprecedented time, as we all know. My goal is to be candid about the real estate environment, but I am also confident that buyers and sellers can still meet their goals and find what they are looking for. Please share this newsletter with anyone else you think might be interested! And please reach out if you have any questions or concerns about buying or selling here in the Roaring Fork Valley.
My best wishes to you and your family. Stay healthy!
Sara