When is prime selling season for mountain resorts?
Sellers who have to sell or those who have their eye on another opportunity should sell now
Dear Leigh and Sue,
I hear about “spring selling season” this time of year but don’t understand why the spring is a more active time to sell. Can you explain this important season versus other times of the year?
Dear Spring Seller,
Historically, as far as spring goes, the main reason for a jump in business is that there is not as much snow and it’s easier to move around.
There are also generally less people in town and with ski season over, owners are more likely to list their home so they have time to relocate during more temperate weather conditions.
Spring also equates to fewer properties being occupied both by owners and renters so brokers have easier access to them for showings. More showings equals more offers.
For the resort/Vail markets, including Beaver Creek, Arrowhead and Cordillera, May is our “typical” mud season, which can be fruitful, as serious buyers start looking, hence it historically being a good month for business. There isn’t much else to do other than look at real estate! Spring can also be good for land sales since with less snow, buyers can actually see the land and walk on it.
“Down Valley,” including Eagle and Gypsum, tends to lead the spring market by a couple months and things are already beginning to pick-up with activity in the neighborhoods west of the resorts. By July 4th, these markets are already well into their selling season while Vail and Beaver Creek are really just getting started.
Investment property owners who are renting their home or residence may also be inclined to sell once ski season is over if a property’s rental income is lower than expected and/or the income from the sale of the home is needed.
A heightened market and potential impacts
In today’s heightened market and with some pending legislation that may affect after tax profits, this spring is a good time to sell, both to maximize profits as well as effect a 1031 tax deferred exchange.
While we don’t know when that change will or may come into effect, according to the National Association of Realtors, it is being seriously discussed.
Sellers should be prepared to talk with their tax accountant. If the 1031 Deferred Exchange is no longer allowed, this may cause less properties to come on the market and will definitely effect the selling and buying sides of real estate. So listing now while it’s still viable and the market is hot is highly recommended.
We do expect spring 2021 to be busier than the previous end of winter season because restrictions for social distancing and mask wearing are less threatening now. People have become more comfortable with the whole process. Whether it is busier than the end of winter seasons prior to 2020 is conjecture. There is nothing like the boom in the last four years.
Valley-wide we typically have viewed Fourth of July as the real kick off for selling season, when we really start seeing the majority of summer visitors. Spring is an ideal time for sellers to make any needed repairs to make their home as attractive and marketable as possible. August has historically been the Vail Valley’s busiest month as the weather, landscaping and all the ‘curb appeal’ features are well in place. This is an optimum time to sell property. And it’s also a great time to look!
No better time to sell
Sellers who have to sell or those who have their eye on another opportunity should sell now. We know the market is strong today and we don’t know what tomorrow will bring. Nothing is typical anymore.
With historic lows for listings, some buyers are willing to fly out at a moment’s notice, no matter the time of year. It is also not unusual for a buyer to submit an offer based on a FaceTime, video or Matterport showing. In the last two weeks, we have had two different buyers submit offers this way. One a single family in West Vail and most recently for a Manor Vail condo.
The Vail Valley is getting busier year-round and we see this trend continuing in 2021. Even into the fall, which typically sees a drop off, real estate sales were at an all-time high and we had to keep reminding ourselves it was indeed October and November. People want to be in the mountains more than ever, and if a homeowner is considering selling there is no better time than now.
Buyer trends and options
Buyers who thought they only wanted an updated, turn-key property in a specific area in the valley are now shifting gears and reconsidering the options.
Recent sales have included a property in Arrowhead to a family who originally only wanted to look in Beaver Creek. Same with Cordillera Valley Club.
Another buyer, who has been coming to Vail for 40 years, had never seen or heard of Cordillera. He’s not a golfer and didn’t think he and his wife would be interested.
As it turned out, the home was a perfect fit and he and his wife can’t imagine owning anywhere else in the valley. Another option and trend we’re seeing is in deeded fractional ownership.
This is a great option for buyers who may want to spend more time in the Vail Valley with a turn-key package or ones who may be waiting or wanting to see where the market goes.
Yes, spring can and is, in many ways, a kick off to the summer season and a great time to get your home ready to list it so you can take advantage of the momentum leading into the peak summer months.
—Leigh and Sue
Leigh and Sue Rychel are 50+ year Vail Valley residents and top producing Vail Valley broker associates dating back to the late 1970s. They recently joined Berkshire Hathaway HomeServices Colorado Properties to leverage their collective experience and expertise on behalf of their clients as a team and individually. For more information, contact Leigh at email@example.com or 970-376-4620 or Sue at firstname.lastname@example.org.