Our Post-Election Market
Naturally, election years bring a state of uncertainty, and markets don’t respond well to uncertainty. Buyers tend to spend more conservatively, especially when it comes to making large investments. Simply put, home sales across the nation tend drop in election years. We’ve seen this trend in the Aspen/Snowmass market as well. Every presidential transition comes with some volatility, but history suggests that markets will settle – and they seem to have done so fairly quickly last week following the election.
Now that it is over, we expect wary buyers will start to come off the sidelines and jump back into the game. In fact, we are already starting to see this happen in the local market. The second half of 2016 has brought an uptick in activity with sales in the last three months nearly matching those for the entire first half of the 2016.
And while the reality is that 2016 will fall short of its 2015 record predecessor, it’s time to look at the market through a different lens. Put 2015 aside. It was an outstanding year and also an unrealistic benchmark for comparison. Some areas and property types are faring better than others, but overall the Aspen/Snowmass market really isn’t too far off from historic norms and is moving in a healthy pattern. Some noteworthy highlights for each area are summarized below.
Real estate is a great investment to hedge against inflation, and many investors may be looking to add more to their portfolios, especially with the new president having a real estate background. Here at Engel and Völkers, we are committed to helping you find that perfect investment.
Aspen | August – October Comparison
- Average price/sq ft up about 24% from 2013, 10% from 2014, and 2% from 2015
- Single-family sector experienced the largest fall, as buyers have been hesitant to make big purchases
- Aspen condo market is hot, with dollar sales up 7% from 2013, 12% from 2014, and similar compared to 2016
- Properties under $2 million are most active and accounted for roughly half of unit sales
- Nearly 40 properties went under contract last month, a 76% increase from October 2013
Snowmass | August – October Comparison
- Unit sales up nearly 60%, and dollar sales up a remarkable 92% compared to 2015
- Condos saw the largest increase over the last 3 months, with a 232% rise in dollar sales and a 78% increase in unit sales compared to 2015
- Single-family dollar sales up 53% and unit sales up 22% from 2015
- Average price/sq ft rose about 30% from 2015
- 14 properties went under contract, up 133% from October 2014
E&V’s Event Picks of the Month
There is not a better way to kick off the Holiday Season than by attending the 32nd Annual Sardy House Christmas Tree Lighting. Free hot chocolate and cookies will be served while kids visit with Santa and adults bop to the beat of holiday music on the front porch. This event takes place on December 4 at 6:00pm and is free. 128 E. Main Street, Aspen.
Embrace the holiday spirit and enjoy the magic of Aspen Santa Fe Ballet’s The Nutcracker. Children of all ages will marvel at this whimsical interpretation of a seasonal classic. With ballet, flamenco, sword dance and even an aerialist, allow the cast of 60 dancers and circus artists to create lifelong memories. Tickets for the December 10th & 11 performances can be purchased here.