THE COLORADO PANDEMIC GOLD RUSH
Luxury residences in Colorado’s mountain towns have been in high demand since the onset of the COVID-19 pandemic as America’s affluent head to the Rocky Mountains, seeking more space and easier access to the outdoors - and it shows no signs of slowing down.
Compass launched in Vail, Colorado last month amidst this market surge. In the Vail Valley, transaction volume for Q1 2021 was up 66% over Q1 2020, and days on market for luxury homes decreased by half (average DOM for homes over $3M+ is 189, down from 395 days in 2020).
Tye Stockton, founder of The Stockton Group, is Vail’s top real estate agent and the newest member of the Compass family. Tye offered up his expert insight into the current market realities and his predictions for the future.
How have you seen demand for luxury properties change across the Vail Valley in the past year?
This last year has seen demand remain extremely strong as we sell into shrinking inventory. We expect the buyer pool to outpace seller demand for another 12-18 months.
What types of properties are seeing the biggest changes and what are they being purchased for?
Larger homes with more privacy are very hot now. Families are looking for more space and amenities as they want to spend more time in the Vail Valley. We are seeing a nice mix of families moving here full-time and families acquiring a “safe haven” at which to spend more time.
What do you believe is causing changing demand for luxury property in the Vail Valley, and how do you think this has been influenced by the COVID-19 pandemic?
Buyers want better access to lifestyle opportunities and to public lands. They realize any future lockdowns position them nicely by being in our mountain community. The Pandemic has driven an already demand rich market to another level. We call it a pandemic gold rush.
Do you think the shifts of this year will have a lasting impact or, post-pandemic, will everything bounce back to how it was before?
This pandemic has caused a shift we believe will be permanent. Many families have realized you can live, play and work here and not sacrifice your ability to run a business or a quality education for the kids. Our schools are oversubscribed and have done an excellent job of managing COVID-19. The Vail Valley by and large has remained open for business and our schools and citizens have been doing their part to stay safe.