All indications are that the overall real estate market in the Vail Valley has turned the corner and a long, slow recovery is underway. It appears the recovery is being led by the very strong ultra-high end market. Sales over $4 million jumped from 27 in 2009 to 71 in 2010, a 260% increase. A portion of this increase can be attributed to high-end closings at the Solaris, but even without the Solaris closings, sales more than doubled.
How do we account for this increase? I still believe buyers are looking for quality and “location, location, location”. Both are represented well in the high-end market in the Vail Valley. People are attracted to the Vail Valley lifestyle and, with two world-class ski resorts in the county, it’s hard to go wrong. Another factor is discounting. High end real estate was heavily discounted to the tune of 21% between original list price and final sales price. Folks with a high net worth recognize good deals.
The graph below clearly shows the increasing trend in high dollar real estate. The amazing thing is that 2010 sales exceeded sales in 2006, one or our high water years. It will be interesting to see how 2011 turns out.