Time to buy, sell or remodel? What will Summer 2023 bring?
Real estate activity reports from around the country paint the picture of price reductions, increasing inventories and steadily increasing mortgage rates. Those reports fail to mention iconic markets like Aspen/Snowmass and Palm Beach which are still experiencing significant price increases and shrinking inventories.
Record snow welcomed skiers and visitors throughout the 2022-23 season. Many who inquired about “great deals” referenced in the media, were surprised to discover that local property values were still increasing, and available inventories were still tight. “Let me know when the market turns downward, and I’ll be ready to act” is a common comment that I have heard since 1985.
Since the 1980s, the Aspen/Snowmass real estate market has seldom softened to a point where prices significantly decreased for more than a few months before suddenly surging again. Most people who waited for the market to “improve” are still waiting and for many, the market has passed them by.
Some recent eye-catching transactions:
- Aspen Mountain single-family home is under contract asking $100,000,000 ($7,065sf)
- The Havens on Fanny Hill #8 in Snowmass Village sold new in January at $7,210,625 ($2,146sf) and is back on the market at $17,600,000 ($5,255sf)
- Electric Pass Lodge #405 in Snowmass Village sold new in April at $1,575,000 ($1,556sf) and is back on the market at $3,036,000 ($3,000sf)
- 936 King Street in Aspen closed in April at $34,000,000 ($4,816sf)
The Aspen/Snowmass market is often positively affected by instability in the financial markets. When Wall Street fluctuates, many savvy investors park funds in Aspen/Snowmass real estate. Some of the most dramatic increases in property values coincide with significant financial market downturns.
This summer is shaping up to follow the historic, stair-step trend illustrated by a brief leveling of prices followed quickly by another increase. Although we are seeing a decrease in the number of transactions, the average price, especially at the low and high ends of the market, remain unaffected.
The rule of supply and demand still prevails; when demand exceeds supply, prices rise. Demand for Aspen Snowmass real estate is limitless with the world’s wealthiest people not afraid to invest in this iconic place.
Currently, Aspen/Snowmass buyers are looking for instant gratification and are willing to pay for new or remodeled homes. The latest trend has been contemporary, minimalist but I sense the pendulum has already begun to swing back to the traditional alpine style home.
The next big play could be investing time and money in homes that have good bones but need refreshing.