Real Estate Buyers: Beat The Market In 2023
Changes to the housing market are a top story of 2023, and national housing trends all agree that the peak of the Sellers market is behind us. So does this mean it's become easier to buy? I'm sorry to say it, but, not necessarily. That's not to say there isn't still an immense amount of opportunity today for Buyers who approach Real Estate as a long-term investment, and the shifting market will present some great deals. The key for Buyers will be understanding that: timing is everything. Read on to learn our #1 tip for Real Estate Buyers hoping to come out on top in 2023! After two and a half years of getting raked over the coals in the hottest Sellers market in modern history, Buyers are eager to take back control. They have made their new stance quite clear - no one is willing to overpay anymore. As a result, property appreciation in 2023 has stalled out, and overall sales price is down in Q1. Properties are sitting on the market 62% longer on average than in 2022, and 29% of active Summit MLS listings today have reduced their sales price. On the surface, these statistics point to a slowing market. So why then are we still running into bidding wars and hearing stories of Sellers receiving multiple offers? This past month, we've encountered four different multiple-offer scenarios where our clients had to race against a deadline, submit offers with aggressive contingencies, and compete against other Buyers on price. Sounds a lot like the last two years, right? You, like us, have surely heard a LOT about how interest rates are still hovering around 6%, purchasing power is down, and Buyers are wary of the economy. This is all true, but at the same time, you know Real Estate remains a reliable, stable investment, and demand remains high in second home and resort markets like ours. You're taking the time to inform yourself on today's market value, and other Buyers are too. If you're interested in mountain property, you're still keen to pay a price you can justify. Everyone is talking about what Buyer habits are affecting the market, but does it not take two to tango? Instead of harping on about interest rates, lets consider what Sellers are doing right now and how it's affecting the market. Generally speaking, Sellers are having a very difficult time adjusting to the end of the fever pitch pandemic market. As a result, Sellers are perpetually over-estimating their appreciation, and their property's value. (Are you a Seller concerned about missing the peak and losing value? Read more here about how to reframe your thinking!) As we established, no one is willing to overpay anymore. Yet every over-valued listing that hits the market begets a handful more. Every Seller wants the same price as they see their neighbor listing for. So the more over-valued properties there are for sale, the higher the average days-on-market number skews. If a property has been sitting on the market for too long with no interest, the Seller is forced to reduce the price. So you can see now how Sellers' habits are affecting the market statistics as much as Buyers' habits. If the first price drop doesn't work, then you can expect another one and another one, until the property price is finally in line with today's market value. Because Buyers are more educated than ever, they're all waiting to pounce on a deal. So once a property's list price hits 'the sweet spot', all those Buyers who have been watching the falling price are ready and willing to make a move. This is when the bidding wars and offer deadlines and so on all come back into play, and it's also when Buyers begin to lose their bargaining power. Of the four multiple-offer situations our team faced this month, three of them were on properties that had just dropped price after being on the market anywhere from 20 to 86 days. So finally, lets get to the hook. How can Real Estate Buyers come out on top and beat the market this year? Our #1 tip for our Buyers right now is to go after properties before they hit 'the sweet spot'. As the data and our anecdotes show us, there are still many Buyers in the Summit Area who are interested in attractively priced properties. If you can get ahead of the price drops, then you can likely get ahead of those other Buyers. Submit an offer that you think is reasonable, and see where it goes! You never know the Sellers' motivations and true bottom line until you begin the negotation. It's not true every time, but often, Sellers who are overpriced begin to realize it after two weeks. If they're mentally prepared for a price adjustment, then they could be prepared for a significally below-list offer. Many of our clients are wary of "lowballing", but the right Realtor can help you craft an offer that's realistic and considerate. If you can begin a conversation with a Seller before other Buyers, then you have a higher chance of avoiding competing offers. You might even be able to score some additional wins such as a lower purchase price, seller concessions to help cover your loan costs, or credits for home improvements. Set yourself up for success as a Real Estate Buyer in 2023 by studying the market and its timing. Don't wait for prices to fall like everyone else in the crowd; make the price that's right for you a reality.
Keystone To Become Colorado's Newest Town
This Tuesday, the voters of Keystone passed a mandate to incorporate and become Colorado's newest town by a margin of 2-1. Home to Keystone Ski Resort, the Keystone area has long been managed as a part of unincorporated Summit County. The March 28th vote was the cummulation of years of conversation and campaigning by community members. So what does this mean for the Keystone area? Keystone still has a great deal of work ahead as the community now undertakes the momentous task of drafting a town charter. We anticipate Keystone's new government to be inaugerated no earlier than 2024. Per Colorado Statue, Summit County will continue to administer the Keystone area for one year, or until the new town first collects taxes. The charter will likely be put to a vote in late summer or early fall. Whether or not the charter can be affirmed within two votes will decide whether Keystone becomes a home-rule municipality or a statutory town. Proponents of incorporation are primarily focused on growing the community's influence when negotiating with large organizations such as Vail Resorts and Colorado DOT, as well as improving pedestrian infrastruture and safety throughout the new town limits. The logistics of funding the new town will surely be the biggest issue for the charter committee to tackle, as funds will need to be raised through new tax infrastructure. The official Keystone Incorporation Committee website states: There is a perception that property taxes will either immediately or eventually increase once Keystone incorporates. If we incorporate, only a vote by registered voters in Keystone could raise taxes...Keystone, as a resort community with a large sales tax base and thousands of rental units, is in a unique financial position in that Keystone has existingsources of revenue before it would ever look to implement a property tax. Future funding proposals for the new town include instituting a lodging tax and a lift ticket tax, along with converting existing tax revenue streams. The biggest question on many of our Keystone clients' minds is 'will Keystone further restrict short-term rentals'? Thankfully, the answer is no as the Keystone community has championed the benefits of short-term rentals throughout the last few years. The Keystone Incorporation Committee affirms "Keystone was founded as and remains primarily a Resort Community whose viability is built and dependent on short term rentals". Incorporation will mean short-term rental permits or licenses will eventully be managed through the new town of Keystone instead of through Summit County. There will likely be different permit rules and fees, but we don't anticipate any dramatic change. Proponents of the new town have also committed to investing in workforce housing. Keystone has the highest volume of dedicated workforce housing of any community in Summit County. The Incorporation Committee hopes that keeping funds more local will improve housing availability and allow Keystone to invest more in lowering workforce housing costs. Keystone residents, property owners, and community stakeholders can follow developments via the incorporation website: incorporatekeystone.wildapricot.org. Even if you are not a registered Keystone voter, there will be opportunities to give input, share what issues matter to you, and advocate for your vision for the community. Between skiing powder days in the North Peak trees to teeing off at the Ranch, Keystone has long been a favorite community of ours. This will be an exciting time for our newest Summit County town, and we look forward to seeing what comes next! If you have any questions about what incorporation might mean for your Keystone home, please reach out at any time. More Incorporation Resources: Keystone Incorporation Short-Term Rental Considerations Keystone Incorporation Taxation Considerations Proposed Town of Keystone Map Colorado Municipal League - Home Rule Overview Colorado Revised Statues 2020 - Title 31 Government - Municipal Colorado Constitution - Article II Sec. VI (pg 100) Comparing Home Rule & Statutory Municipalities CBS Colorado Keystone Incorporation News Contact The New Town of Keystone
RE/MAX Chairman's Club Award Winners for Colorado Real Estate
We are thrilled to share that in recognition of our status as a top-producing Colorado team, The Mountain Real Estate Team is the recipient of the RE/MAX Chairman's Club award for 2022. We are honored to be recognized out of over 140,000 RE/MAX agents worldwide for our work last year. To be acknowledged as a top-producer by RE/MAX - the largest and most recognized Real Estate brand in the world - is something we are very proud of. We are excited to continue driving results this year with the competitive advantage of the RE/MAX network. Our accomplishments are a testiment to the amazing clients we meet and work with. Helping you achieve your Real Estate goals is the best part of what we do, and we look forward to building on our success in 2023 and beyond!
Sell At The Top Of The Market In 2023: The Big Picture
Since the halcyon days (for Sellers) of the pandemic real estate boom came to an end, the question on all Sellers' minds is: Is it still a good time to sell? We have been hearing this more and more from our clients, and while they're right to consider how their goals align with a shifting market, this is often asked to get at a different, more specific, question: Did I miss the "peak"? Now this is a trickier question to answer, because the "peak" of the market is subjective. As any Realtor worth their salt will tell you, each neighborhood is it's own microclimate; subject to wildly varying conditions that affect property value. While some areas in Summit are beginning to see double digit increases in Average Days on Market, some properties are still seeing multiple offers in the first 48 hours. I say the better question for sellers to ask right now is: What is my property worth now vs. when I bought it? By reframing the question, you're looking at the bigger picture. And for the Summit County Area, a much clearer answer comes into focus. Take a look at the graph above. This graphic breaks down the average change in sales price by town from 2019 to now (red), 2020 to now (green) and 2021 to now (yellow). As you can see, the big picture gains are huge. We can see some of the Summit County specific market variables that we often talk about here at play. For example, Breckenridge (where STR permits were restricted throughout 2022) only saw an increase of 11% in 2022, while Copper (where STR permits are unrestricted and unlimited) saw a whopping 41% increase in Average Sold Price in 2022. Now, all local forecasts and reputable models, believe that 2023 will be at best a "flat" year for appreciation in our market. Meaning that the percentage change in Average Sold Price throughout the Summit Area between 2022 and 2023 will be 0% - maybe even single digit decreases in some areas. This isn't hard to imagine; nobody could think the pandemic Real Estate frenzy would last forever, and you don't need me to tell you that interest rates and inflation have wrecked havoc on Real Estate Buyers. Even though the market change is decidedly not a repeat of 2008, maybe by some specific standards the "peak" is in the rear-view mirror. However! If you look at the big picture of property value in our area, and ask what your property is worth now versus when you purchased it, I'm very confident you're still going to like what you see. For those in areas like Silverthorne and Frisco who have seen an unimaginable 75% average gain in property value since 2019, even if we do lose 10-15% in the next year or two, your big picture still shows a big return on your investment. So...IS it still a good time to sell? The big picture clearly says, yes. For the past 6+ months, we've been honest with Sellers that yes, the market has changed. Yes, the days of multiple-offer-mania are behind us. Yes, you will have to accept Buyer contingenices. And yes, you can expect your property to be on the market longer if it isn't priced correctly. At the end of the day, though, the bottom-line equity you have in your property today speaks volumes. If the timing is right for you, it's a good time to sell and still catch the top of the Summit Area market.
Summit County Passes STR Ordinance On Second Reading With Changes
Yesterday, after 5 hours of debate and public comment with record attendance, the Summit County Board of Commissioners passed a sweeping Short-Term Rental (STR) regulatory ordinance to limit STR licenses in unincorporated Summit County, and cap the number of bookings in each rental per year. The new STR ordinance was designed to reduce the overall number of Short-Term Rental permits in Unincorporated Summit County Neighborhoods. At yesterday's second reading, the County made one notable change to the ordinance, tabled another change for future consideration, and reiterated their lack of interest in exempting other neighborhoods from the regulations. Below is a breakdown of the ordinance's new STR Caps per water district and the projected year in which new STR permits will become available. STR % Cap STR Units Permit Availability By* Lower Blue 15% 550 2025 Snake River 5% 130 2030 Ten Mile 6% 20 2030 Upper Blue 18% 590 2025 *Projected year of new STR permit availability is an estimate only, based on historical attrition and sales data. Key Highlights of The New STR Ordinance 1. For those that are able to get or currently have Type 1 & Type 2 STR licenses, the number of bookings allowed per year was increased on the final ordinance from 30 to 35. This policy was recently imposed in Palm Springs, which is where the Summit Commissioners got the idea. It allows owners "flexibility" in how they rent their property. In theory, it encourages week-long bookings versus single night or long weekend reservations. As an example, if a property owner books all 35 reservations as week-long stays, that is a total of 245 nights rented per year. If a property owner books 35 three-day weekends, they will only have 105 nights rented per year. It will be up to each owner as to what combination of nights they want to book for the year, and there will be a portal to manage booking reporting. 2. The Type 3 permit that previously existed in Summit County was eliminated. However, the Commissioners made a commitment to revist the Type 3 licence in the near future. The Type 3 permit is intended for investment owners whose property meets a significant number of criteria that make it more suitable as a high-volume Vacation Rental. We anticipate Type 3 licenses being reinstated eventually for single-family properties on acreage that have the amenities and bedroom count to host large groups, business retreats, family reunions etc. The Type 3 license would be exempt from the 35 bookings per year restriction, and possibly, the water district caps. 3. Type 1 Licences, which are exempt from the water district cap, are available for properties with a "Qualified Occupant" who lives at the property full time and works in the county. A "Qualified Occupant" can be the property's owner or a renter. Type 1 licenses will still only be able to have 35 bookings per year, and have occupancy restrictions beyond Type 2 licences. 4. Properties in the "Resort Overlay Zones" of Keystone, Copper Mountain, Unincorporated Peak 8 Breckenridge, and Tiger Run remain exempt from these new regulations. In the exempt Resort Zones, 100% of properties may obtain an STR permit. There is also no cap on the number of bookings allowed per year, or number of rental nights allowed. Please find more information on the Summit County STR Ordinance hereIf you have any questions at all about what this means for your Summit County property, or your property search, please reach out at any time! We are here to help you navigate these new developments, and make sense of a very complex situation. Rely on our 10+ years of professional experience in local Vacation Rental Management to help you make the right decisions in this time of change.
Best Breckenridge Restaurants for Valentines Day
BEST FOR: ROMANCE Hearthstone Restaurant The Hearthstone has been a Breckenridge favorite for decades. Located in the 125 year-old Kaiser House, with it's historic Victorian details and huge Ten Mile Range views, The Hearthstone's ambiance couldn't be better for a cozy, candlelit date night. I recommend requesting a table upstairs in the lounge for the best sunset views, or go during Happy Hour when the lounge is first-come first-served. Savor Rocky Mountain classics such as Colorado Rack of Lamb and Granola-Crusted Elk along with seasonal specialties. Save room for dessert, as the 'Cake & Shake' - homemade carrot cake and a Breck Bourbon spiked vanilla milkshake - is the perfect size for sharing! BEST FOR: FAMILIES Blue River Bistro The Bistro, as it's fondly called, is another long-time Breckenridge favorite. It's elevated, but still approachable, New American style is the perfect match for a night out with the whole family. Don't miss the Crispy Tiger Shrimp or the Osso Bucco if it's on special, and you won't need a box of chocolates if you order the Snickers Martini for your nightcap. BEST FOR: A NIGHT OUT WITH FRIENDS Rootstalk When Rootstalk opened at the end of 2019, they had an immediate impact on the Breckenridge restaurant scene. Their contemporary, seasonal menu sets the bar continuously high for ski town dining. There are too many exciting dishes to choose from, making Rootstalk a great place to round up a group of friends who like to share! Enjoy a bright, buzzy atmosphere upstairs near the bar, or request a table downstairs for a view of the open kitchen and dimly lit, wine cave vibes. BEST FOR: FOODIES Radicato If you, too, can never decide on just one dish on the menu, then indulging in the exceptional menu at Radicato is a can't-miss experience. This 'Mountain Italian' sister restaurant of Rootstalk, offers exquisite handcut pastas and seasonal entrees that are meant to be shared. If the seasonal tasting menu is offered, I hightly recommend you go for it - it's one of the most satisfying and exciting prix fixe meals in the mountains. BEST FOR: MINGLING Carboy Winery For those looking for a good meal as well as a fun night out on the town, look no further than Breckenridge's Carboy Winery. The tasting room offers an upscale menu of snacks, sharing boards, and hearty bites to accompany your Colorado-grown wine flights. After dinner, scoot on over to the adjacent Gold Pan Saloon - a true, local watering hole and the longest, continuously-operating liquor license west of the Mississippi. With a lively bar scene from apres to closing time, you'll be sure to meet some like-minded company!
Summit County 2022 Market Year In Review
The 2022 Summit County Real Estate year-end statistics are out! While the data shows 2022 was another incredible year in Summit County Real Estate, the stats also give us a preview of the shifting market ahead of us in this coming year. Read on for our thoughts on what this means for both Sellers and Buyers. As we can clearly see from the year-to-year graph above, the average sales price proves 2022 was another year of unprecedented gains in Summit County property value. The average residential sales price for the area (including single-family homes, duplexes, townhomes and condos) was $1,290,984. That's quite a number. On the other hand, 2022 saw a large drop in the total number of sales in Summit. This drop occured entirely in the second half of the year. Why did the pace of real estate sales slow so significantly and suddenly? Some claim the shift occured as mortgage interest rates jumped above 5%. Some say sales slowed as a result of Breckenridge, Frisco, Alma, Fairplay and Summit County enacting Short-Term Rental (STR) ordinances, which effectively eliminated new Rental License availability* for Buyers in the second half of the year. Others believe that the sales volume was destined to come down since the Pandemic-induced market surge was never going to be sustainable. If you ask us, however, we'll assure you that all three of these factors are playing a part in reducing the amount of local Real Estate sales. *Note: the STR landscape has undergone a lot of change in the past 15 months, but now that municipal ordiances have been finalized, Rental Licenses are available in certain areas. Find out more on our STR page! So what does this mean for Sellers? For Sellers, it is more important than ever to work with agents who not only have experience, but who are staying ahead of our shifting market. Sellers in 2023 are sitting on an huge amount of equity in their properties. Even as prices stabilize - or possibly drop - you will find that property value gains are still substantial. Take a look at this graphic: These price gains are impressive! In times of change, it's easy to focus on the negatives, but it's not all doom and gloom like national Real Estate Trends articles might have you believe. Summit County property has always been a strong investment. We think selling at the top of the market is absolutely still possible by looking at the bigger picture. It will, however, take more effort, expertise, and marketing know-how to reach your property sales goals than it has over the last two years. The "list it and forget it" era is well behind us! Details like marketing videos, property ad campaigns, and brand recognition will all make a big difference in 2023. As a team that's passionate about marketing, we're always available to share more about our Listing Plan. Reach out to us any time! So what does this mean for Buyers? For Buyers, the shifting market presents unique opportunities to find some great deals and less competition from other buyers . As sales slow, inflated prices come down, and properties sit on the market for longer periods of time, many Sellers are offering concessions that can greatly benefit a Buyer. Thankfully, the days of waiving your Inspection or covering Appraisal gaps to beat out other offers are over. I mean in addition to that, Sellers might offer credits to cover your closing costs, help buy down your mortgage rate, or we've even seen a couple listings offer seller financing. As you know, we never use 'scare tactics' to convince our clients to buy. However, I will say that if you're looking for a mountain getaway that you can rent out when you aren't using it, now is absolutely the time. As I mentioned above, there are currently Rental Permits available in the Summit area - but only in specific zones and only in specific numbers. Certain areas, like Frisco, will reach a their maximum allowed STR number within the next month. It's always important to work with a local expert, but if owning a second home that is also a vacation rental is a goal of yours, it's even more crucial that you work with an agent with a vacation rental background, who fully understands these new local ordinances and regulations. This is an area in which Steve, Kelli and myself excel in! In summary, the 2022 year-end stats show that while change is coming to the Summit Area market, the Colorado Rockies are an asset you won't find anywhere else. The mountains are a special place, and those of us who know that, know that our Real Estate market will continue to reflect Summit County's enduring popularity.
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