Low inventory and record-high sale prices were the trends for 2020 Aspen real estate. Here’s how things may change in the new year.
Aspen and Snowmass have seen a migration from major metropolitan cities since the beginning of the pandemic in the early spring of 2020. Aspen has a finite amount of inventory; therefore, as demand for Aspen properties increases, so does the price. Demand is high, and inventory is low. So, what does Aspen real estate look like in 2021? Here is what the experts are saying.
Aspen is a New Destination for Remote Workers
When the pandemic hit, millions of Americans began working remotely and soon realized they no longer needed to live within commuting distance of their offices. This sparked a mass exodus from large metropolitan cities to rural and suburban areas where workers have the ability to live in larger homes with outdoor space and can indulge in their favorite hobbies or enjoy vacation-like amenities.
With the “great migration” to more rural areas, resort towns like Aspen and Snowmass have seen a real estate and economic boom. The influx of families and remote workers looking to rent and buy in Aspen created a sense of urgency and panic in the real estate market. There was a 60% increase in Aspen sales versus 2019, specifically in the luxury sector, driving up the median sales prices and diminishing the inventory.
Rising Prices and Values
Five years ago, the average price of an Aspen home was $3.8M. In 2020, the average home price was $6.6M, reflecting a 74% increase over five years. That is a 15% per annum return. If we look specifically at the pandemic shift, the average home sale price increased from $4.1M in 2019 to $6.6M in 2020 — that is a 61% increase in home value over just one year! 2021 is off to a great start with an 86% increase in sales year to date versus 2020. Because of Aspen’s limited square footage and development potential, homes hold their value. With great rental and personal enjoyment potential, Aspen real estate is a great alternative asset to the stock market.
Finite Inventory, Invest Now
As we approach the second quarter of 2021, Aspen has record-low inventory. As previously mentioned, Aspen is unique because of the limited amount of square footage available and limited developable land. A new base record of sales prices is being established, and we do not anticipate prices coming down. There is no time like the present. If you have an interest in investing in Aspen real estate, get in the game now!
Sales Will Taper
The total sales volume in Aspen and Snowmass was unprecedented in 2021, with a 47 percent increase in sales transactions versus 2019. Sales volume in 2020 hit a record 2.7B, which was more than the sales volume of 2018 and 2019 combined.
The market we are currently experiencing is unsustainable. We anticipate sales tapering in 2021 because there is not enough inventory on the market to meet buyer demand.
Tips on Buying Property in Aspen in 2021
Buying homes for sale in Aspen during such a competitive market is not always easy, but it’s well worth the effort when you consider the upside of your investment. When you’re a buyer in a seller’s market, there are some tips you can follow to ensure you get a property that will fit your needs.
- Act fast and act now. Homes that used to linger on the market for weeks or even months are now being snapped up in just days. Be ready to make a quick offer on a home if you find one you love. Sleeping on the decision for even a single day could mean losing the home to another motivated buyer.
- Let go of perfect. Yes, you might have a vision for what your perfect Aspen home will look like, but it’s likely you won’t find it with such low inventory. Know what your “must-haves” are for your new home, then consider the rest of your wish list negotiable.
- Look at homes for sale in Aspen daily — or more. The longer a listing is active, the more likely it will be sold in a strong seller’s market. That’s why you need to jump on a property as soon as possible. Make sure you are looking at listing sites that frequently update throughout the day and, if possible, have alerts set, so you don’t miss a potential property. Contact your Compass broker to set up a collection with automatic updates with new listings and price reductions.
- Work with an experienced Aspen broker. When working with an expert Aspen luxury broker like Steven Shane, you will have someone who can identify good values, provide an understanding of the areas, and prepare market analyses. Not only will a broker be able to tell you about properties that match your criteria as soon as they are listed (and sometimes even before), but he or she will also help you navigate the buying process. This is especially important in a seller’s market, where there are often bidding wars that can be difficult to navigate.
Keeping an eye on the market shifts in Aspen and Snowmass is a good idea if you are thinking about investing in homes for sale in Aspen. With the help of an experienced broker, you can take advantage of strong market conditions and make an investment that strengthens your portfolio or provides a welcome retreat for your family.
