Released Aug 4, 2020 v2
The market is in a frenzy at present against a backdrop of the US and worldwide Covid-19 pandemic, record low interest rates, urban unrest, record unemployment, plummeting US GDP, record gold prices, a stock market hovering near all time highs and China, Russia geopolitical tensions.
Buyers are highly charged. Many are moving here full time or planning to spend a lot more time out here. They are seeking physical space and safety. Quality of life has always been Aspen’s draw and now more than ever. School enrollment is up significantly. The vacation/2nd home is no longer just the chill-out place but a home that needs to accommodate more permanent living situations.
More summer renters are staying through September – Sept is the new July. One week rentals are no longer necessarily the norm; it’s more like 30-day minimums. Rental inventory is extremely thin. Many renters are extending their stays and want to become, or are, buyers. The longer people stay here, the more they like it and want to stay.
While inventory of properties for sale has been historically low for the past 5 years, new listings are coming onto the market at higher prices in order to take advantage of the heightened demand. These new prices are NOT where prices are at present but where they are likely moving towards in the next 1-8 weeks. New sellers are pricing sometimes as high as 20-40% more than present comps may justify. Why? The 70+ under contracts in July will be closing anytime now through Aug and Sept. That’s when we will see the actual higher comparable selling prices.
Comps mean less in a very active market. Today’s record price is yesterday’s comp. Sellers may want to stay firm in their pricing, see where the market is pushing or raise prices, but there are a lot of caveats out there and uncertainty rules.
Like buyers, sellers are facing changing circumstances as well… With Covid-19, economic disruptions, family living dislocations and generational stacking-up in the home…they too are rethinking things. Boomers, well on their way to down-sizing, may be rethinking that they now need a larger home or a family compound to accommodate their new and different multi-generational household.
Predictions for Sept and beyond?
The market should be very strong through Sept. Beyond then…? Much uncertainty: the election, Covid 19, sinking GDP, record unemployment issues, so much is unknown.
Presidential election years typically cause great uncertainty and locally have resulted in slower sales than normal. The most pronounced on record was 2016, a disastrous year for Aspen real estate that literally blasted off in mid-November, a week after the election and has not slowed since. This election year, it seems that Covid 19 has tempered the political emphasis.
Deals are getting done quickly… multiple offers; time is of the essence; busy times; busy market. Buyers may well lose out on deals if they drag their feet unnecessarily. There’s an expression, “Do the heavy thinking and brain damage once the property’s under contract.” Secure it, lock it up. Colorado real estate law greatly favors the buyer and the buyer’s ability to terminate a contract.
Condo prices emphatically are pushing upwards. There is very low supply, maybe 50% of where we were 5-6 years ago, and it was already low then. New condo complexes simply are too difficult to gain approval for and build. They practically don’t exist. Yes, there are new listings coming out, but the number of properties going under contract is outpacing this new supply.
Prices are being driven by supply and demand.
Aspen Only: July 2020 Market Statistics Summary
Aspen condo sales July 2020
- Unit Sales: +114% (15) in Jul ‘20 from (7) in Jul ‘19
- Dollar Sales: +299% $50M in Jul ‘20 from $12M in Jul ‘19
- Inventory Active Listings: +26% (154) in Jul ‘20 from (122) in Jul ‘19
Aspen condo sales YTD
- Unit Sales: -33% (54) in Jul ‘20 from (80) in Jul ‘19
- Dollar Sales: +28% $225M in Jul ‘20 from $176M in Jul ‘19
- Inventory Active Listings: +1% (232) in Jul ‘20 from (229) in Jul ‘19
Aspen Single family home sales July 2020
- Unit Sales: +450% (11) in Jul ‘20 from (2) in Jul ‘19
- Dollar Sales: +395% $127M in Jul ‘20 from $26M in Jul ‘19
- Inventory Active Listings: -6% (169) in Jul ‘20 from (179) in Jul ‘19
Aspen Single family home sales YTD
- Unit Sales: -7% (39) in Jul ‘20 from (42) in Jul ‘19
- Dollar Sales: -3% $362M in Jul ‘20 from $375M in Jul ‘19
- Inventory Active Listings: +1% (258) in Jul ‘20 from (253) in Jul ‘19
*Typically, the Aspen market represents 70-75% of the total combined Aspen Snowmass Village real estate marketplace.
Due to lack of space on Pg 7 of the July ’20 Snapshot, a neighborhood specific $/sq ft sale outlier is referenced here…the sale of 606-719 W Hopkins (MLS 165561) for $29.65MM for 6.6 acres with a 1968 built structure in town has been excluded from price $/sq ft averages. This sale IS included in total Aspen unit and dollars sales figures.
Snowmass Village Only: July 2020 Market Statistics Summary
Snowmass Village condo sales July 2020
- Unit Sales: +125% (9) in Jul ‘20 from (4) in Jul ‘19
- Dollar Sales: +224% $11M in Jul ‘20 from $3M in Jul ‘19
- Inventory Active Listings: -8% (151) in Jul ‘20 from (165) in Jul ‘19
Snowmass Village condo sales YTD
- Unit Sales: -17% (57) in Jul ‘20 from (69) in Jul ‘19
- Dollar Sales: +5% $76M in Jul ‘20 from $72M in Jul ‘19
- Inventory Active Listings: -13% (244) in Jul ‘20 from (283) in Jul ‘19
Snowmass Village Single family home sales July 2020
- Unit Sales: 0% (7) in Jul ‘20 from (7) in Jul ‘19
- Dollar Sales: +52% $32M in Jul ‘20 from $21M in Jul ‘19
- Inventory Active Listings: -5% (73) in Jul ‘20 from (77) in Jul ‘19
Snowmass Village Single family home sales YTD
- Unit Sales: -44% (15) in Jul ‘20 from (27) in Jul ‘19
- Dollar Sales: -47% $55M in Jul ‘20 from $105M in Jul ‘19
- Inventory Active Listings: -12% (116) in Jul ‘20 from (132) in Jul ‘19
* Typically, the Snowmass Village market represents 25-30% of the total combined Aspen Snowmass Village real estate marketplace.
Links to July 2020 Aspen and Snowmass Village Sold Property Photos and Details
Aspen Jul 2020 Closed Properties (26). This link is valid until 9/31/2020.