The Vail Beaver Creek luxury real estate marketplace is back with a buying vengeance. Investors are looking for more than deep powder but unique and distinctive ski-in, ski-out locations, which are quickly pushing the local Vail Beaver Creek real estate marketplace higher. Historically, and if you ask any real estate professional, they will tell you that real estate always follows the performance of the stock market. This is especially true for guests and second homeowners of Vail or Beaver Creek where the average family visiting makes an income over $274,000 a year and is capable of purchasing big ticket, luxury real estate in or around the Vail Valley.
Stock Market Connection
In Vail or Beaver Creek, Colorado, and in similar international resort markets, the theory of real estate and it’s relation to the stock market has been incredibly accurate. Over the past six months, the Dow has surged and remained over 18,000 points. A very strong “bull” market has mysteriously pulled buyers off the fence again, after what appeared to be a sluggish recovery in the luxury, custom home market. According to recent statistics provided by Land Title Guarantee, Vail and Beaver Creek have seen the biggest increase in home sales by 101% over 2014 mid-year results.
Luxury Sales on the Rise
In June, Vail Village and Beaver Creek were witness to a flurry of homes sales. 156 property transfers out of a possible 857 across Eagle County thus far. The majority of sales over $2 million have been located in the Vail or Beaver Creek village areas. This is great news for luxury sellers, as large majorities of sellers have been waiting to sell to recover from the most recent real estate downturn. Investors have been interested in properties found in our villages, because the investment initially made is often considered to be safer and carrying costs are frequently offset by rental income.
According to Land Title Guarantee Company, June alone boasted nearly $226 million in dollar volume and 219 completed transactions across Eagle County transpired. Vail Village led the market with over $41 million in transaction dollar volume, making up 18 percent of the completed transactions. Vail Village also had the highest transaction recorded with a home sale at the base of Vail Mountain going for $15.75 million. New construction projects in or around Vail and custom builds in Beaver Creek have been seeing heavy interest with new permit requests through county agencies, inquiries for new construction from buyer agents, and increased interest from investors. Beaver Creek, including Bachelor’s Gulch and Arrowhead Villages, had a grand total of nearly $45 million in transactions. Year to date, Vail Village and Beaver Creek, are #1 and #2 in real estate sales with over $245 million in property transfers.
A Look to the Future
What’s to come? In the end of August, Wall Street was hit with volatile news coming out of the Chinese market place, sending stock markets across the globe into a selling frenzy. For the last 10 years, the Vail Valley has seen investors from around the world, including China, quietly buying high-end real estate in Vail or Beaver Creek. It has yet to be seen what effect this recent market slide will have on resort base area sales.
Image Source: Flickr/rjones0856
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