There's no denying that a shift is underway within the U.S. housing market. Entering 2022, much of the country unofficially left behind the pandemic-driven seller's market. Trading unprecedented demand, historically low-interest rates, and a massive supply shortage for a transitory market in limbo, buyers and sellers alike waited anxiously to see where the country's economy was heading.

 

What came next was a series of interest rate hikes by the Federal Reserve. Done to curb rampant inflation, which reached a 41-year high in June, this solidified the air of uncertainty that's hung over the U.S. marketplace for much of the year. Of course, exceptions do happen. One such case is found in the rarified air of the Roaring Fork Valley.

 

Before looking ahead to the rest of 2023, let's first close the book on 2022 and explore how the Pitkin County market evolved over the prior 12 months. Then we'll take a closer look at where we are now and the Snowmass Village real estate market forecast for 2023.

Late in 2021, concerns were raised about the possibility of a prolonged battle with inflation. At the time, those issues seemed a distant distraction based on the region's fourth-quarter performance. In practically every metric that mattered, the Aspen and Snowmass Village residential markets heated up just as the temperature fell across the Roaring Fork Valley.

 

In Aspen, the single-family submarket maintained an impressive winning streak. The median sale price was up slightly from 2020, while the average price increased nearly 15 percent in the same time frame. And while the number of properties sold didn't live up to the previous year's quarter, they did sell faster. Snowmass Village real estate ended 2021 in an even better spot.

 

Aspen and Snowmass Village outperformed expectations month after month in 2022. They didn't just carry over the torrid sales pace from 2021, but continued to beat it.

 

The only real hindrance to market performance was properties sold and total dollar volume transacted—but only because inventory was drying up. By the end of November 2022, Snowmass Village single-family home prices had topped $6.5 million in the median sale price. Condos and townhomes in Snowmass Village closed with a $1.9 million median price in December 2022.

There's little question that Snowmass Village has started 2023 in a better place than it began in 2022. Median sales prices continue to rise steadily, with closed sales also increasing as of early 2023. A primary contributor to the area's ongoing success is who's buying property.

 

Snowmass Village, Aspen, and a few other hyper-luxurious resort destinations attract an extraordinarily distinct buyer class. Apart from even high-end Denver or Colorado Springs luxury home shoppers, the deep-pocketed clientele who venture to Pitkin County come ready and able to buy their dream luxury homes.

 

The majority of the country is currently sorting through mortgage rates that have risen from three percent for a 30-year fixed-rate loan in December 2021 to five percent in June 2022 to a current rate of around six percent. However, if you can avoid paying interest, you're saving considerable money. Considering that those who frequent Snowmass Village and Aspen possess a keen eye for maximizing the value of a second or third home or an opulent investment property, it makes sense that cash is the preferred acquisition method.

 

Transactions are expected to continue into 2023 but at a less feverish pace than in 2021. One reason is there's very little left to purchase. Properties will continue to trade hands, however, the volume will trend lower.

 

The larger question is, with the current class of property and the clientele buying it, will Snowmass Village and Aspen be immune from the worries over affordability the rest of the country is encountering? The short answer is no.

 

Only in rare instances would any town or city escape without feeling some effects from such widespread financial concerns. The rise of inflation impacts everyone, from shopping for local goods and services to the residential or investment portfolios claimed by many Snowmass Village homeowners. Increasing energy prices also cut into home affordability, whether in Snowmass, Aspen, Vail, or Boulder. The ups and downs of the country's financial concerns are felt the same here as everywhere else, even if it takes a bit longer to materialize.

 

As the economy shifts throughout 2023, expect new buyers to approach the market more thoughtfully than they had over the prior two years. Pushed into bidding wars and snap decisions at the height of the pandemic market, buyers seeking homes or investments will dial back the urgency. Anticipation will rise for more housing options and less competition. Most of all, some buyers will wait for more palpable listing prices.

 

For their part, sellers may have to work harder in 2023 to maintain the premium home prices they've come to enjoy over the prior 18-plus months. Home shoppers will take note if neighboring luxury markets walk back listing prices. A lull may materialize sometime in 2023 as buyers and sellers decide where to meet in the middle.

As with any market outlook, conditions can quickly change course in the blink of an eye. We must only look back at recent history to recognize the suddenness with which markets shift.

 

As shown by its consistent performance, the Snowmass Village luxury residential market has shown remarkable staying power. Even in a cooling-off period, the region's immaculate high-end homes will continue attracting discerning, deep-pocketed high-end buyers. The continued residential and commercial development of Snowmass Base Village helps make Snowmass Village a desirable market.

Ready to enter one of the country's most exclusive and highly sought-after luxury real estate markets? Or do you have a spectacular piece of land, single-family home, or condo waiting to be matched with the ideal buyer?

 

Contact Lori Guilander today to begin your extraordinary real estate journey across the Roaring Fork Valley. If you want to get results, let Lori’s experience and expertise guide you through the stunning Snowmass Village Real Estate market.