Grand County is still experiencing a strong seller's market. We should see this continue thru the end of 2019 and into 2020. The one new trend that we are starting to see is that some sellers are having to lower their initial list price to attract an offer. Of the 170 residential listings currently on the market in the Winter Park Area (Winter Park/Fraser/Tabernash), 19% have lowered their price an average of 8%. That's 33 out of the 170 active listings that have tried to push pricing and have lost time on the market by listing too high. Overpricing a property hurts the opportunity to sell quickly, it turns off buyers and burns valuable days on market. Buyers see a property that has been on the market for over a month with a price reduction as "the sellers are getting desperate and I can make a lower offer." This is true as many of our Buyers come from strong urban markets where this same reasoning exists - it is no different in a resort market.
Our Realtors at REWP have a strong understanding of the local market and can help you price your property correctly to maximize your net gain. We often work together behind the scenes when looking at pricing, especially with unique properties. We want to ensure that Sellers leave no money on the table but also achieve top dollar in an evolving marketplace. We are still seeing multiple offers but not as many as we were experiencing 6 months ago.
Of the 129 residential properties that are pending, 8% (or 10 homes) lowered their price and average of 4% before they went under contract. And of the sold homes since 1/1/2019, 10% (24 out of 251) lowered their original price an average of 6%.
I know what you're thinking.... are there any properties that have INCREASED their price? We see that mostly in new construction spec homes. Once the builder installs upgrades or makes floor plan changes, they increase the price to reflect those custom changes AFTER the buyer has gone to contract but before the home is completed.
The third and fourth quarters are historically our busiest selling season in Grand County so we are optimistic there will be the usual flood of Buyers ready to be in a property before ski season.
The Federal Reserve shocked us all by lowering interest rates this week to improve an already better mortgage marketplace. Rates remain low at 3.75% for a 30 year fixed conventional loan, which will lend to continued improvement in home sales thru the rest of the year.