BANDONI's Real Estate Reality | May 2021 
It is true. We have unprecedented low inventory, the shelves appear quite bare and it seems like there is nothing to buy. But things aren’t always as they appear.  A closer look reveals that the shelves are actually getting stocked by the overnight crew and those who show up first thing in the morning may find what they need. The homes are indeed grabbed from the shelf more quickly than they
are being replenished which is why the inventory amount is declining monthly. So to say there is ‘nothing to buy’ would not be accurate. There is something to buy but doing so necessitates quick hands and feet. If there were indeed nothing to buy, the sales volume would be way down, but it is not. It is way up… 
The volume of increased sales and pending contracts indicates that properties have been available for sale and that they are getting purchased quickly. In fact, of the 368 pending units, half of them went under contract in 14 days. The result is that the inventory for sale amount stays low despite the many transactions on a daily basis. This first quarter in Eagle County just experienced more sales than in any Q1 in recent history. (Above, I use 2019 as a comparison because early 2020 was an abnormal, pandemic-affected period. It is more typical of long-term history).
 
The charts below illustrate decreasing inventory volume at the same time as an increasing volume of monthly new listings.
IS IT WRONG TO BUY IN A SELLER’S MARKET?
No. Provided that you buy the right property, at the right price, and you commit to holding it for 3+ years. The right property is one which the majority of buyers deem highly desirable in a normal marketplace, i.e., a blue chip regardless of market conditions. The wrong property is one which sells quickly only in a depleted marketplace…such as a property with no views or excessive road noise (and yes, that has been happening. Yet not with any clients-o-mine). The right price is one which is just enough to win the property from the others vying for it and it has a ‘break even’ in the very near future. The wrong price is one which is ten percent above today’s appraisal.
 
Selling property in a seller’s market may seem easy to do but it is also quite easy to screw up. There are many fine examples of that right now in the Vail Valley. (Sorry, I cannot specify which ones those are because each one is attached to a broker’s name). Simply put, to sell right, all of the standard, diligent, evaluations and procedures must be wisely implemented and only then you will you best capitalize on the market efficiently. Also, in this marketplace, a seller must be well informed about who the buyer is. Ultimately, sticking a for sale sign in the ground with a dreamy number on it doesn’t work.
 
PROGNOSTICATION
Will the inventory increase enough this spring to lessen the competition? Must you skip breakfast and run to store early for the rest of the year? Well, I should never tackle such unknowns, but I will: ‘no’ and ‘yes’. 

No, I do not think supply & demand will balance out this summer. I believe the inventory will increase but it will not increase at the typical, seasonal rate and the market will remain competitive. Yes, being prepared, watching the store shelves constantly, and even wandering into the loading dock early morning to snoop around is the key to success. And that is what I do. But I won't skip breakfast. It's is my favorite meal of the day.
If you have any questions about this unique market or your particular agenda, I welcome your call to discuss it.

Be Well!
ScottBANDONI Impeccable Representation for 26 Years
cell 970.390.9400 email bandoni@vail.net

LIV Sotheby's International Realty | 26 Avondale Lane | Beaver Creek Village
www.ScottBandoni.com    my listings + my sales + more   
      
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