“Residential activity during February closely followed last month and year over year results,” according to the data and analysis provided in the February 2016 Market View report issued this week. “For the total market (Aspen to Parachute) there were 134 units added in February compared to 149 in February of 2015. Sales continue to narrowly outpace those of last year with 76 closed residential transactions YTD compared to 72 last year at this time.”
The report’s analysis this month also includes a comprehensive answer to a frequent question we hear:
An interesting phenomena has now developed that is well pronounced in local markets and to various degrees, in others across the country. The obvious question is: Why aren’t more affordable homes being built to accommodate the inventory shortage? Here’s the answer. Home values have risen much faster than wages. Prior to the Great Recession, Garfield County’s working force was largely centered in energy and construction. With the downturn, many of those workers were forced to go elsewhere. As construction activity picks up in the major resort markets like Aspen, Vail, and Telluride, demand for the scarce labor resources drives up the cost of their services. While costs are less of a concern on high-end homes and projects, they are a formidable obstacle to the cost-effectiveness of modestly priced homes. … Solutions will emerge as the issue becomes increasingly magnified but until that happens, expect increased demand on existing homes.
To understand the latest residential real estate trends in this market, professionals all across our industry look to the indispensable data and analysis featured in this guide released by Market Trends LLC each month.
Researched, compiled, analyzed, and published by Joe Carpenter, one of our own brokers here at Fleisher Real Estate, the report features data on the number of real estate transactions and other key variables, measuring the total market opportunity and their respective market share. Real estate companies, brokers, mortgage companies, banks, appraisers, developers and other professionals rely on this report because, according to Market Trends, these trend indicators can display shifts in market direction well in advance of when they show up in prices and negotiating terms.
But what does that mean for you? While this is a report designed for industry professionals, it provides key insights that may provide individual buyers and sellers with an advantage as they approach their own transactions. We believe that knowledge is power, and like the report’s visionary Joe Carpenter, our entire team of experts believes in sharing our knowledge with our clients and the communities we serve. With this empowerment, we help set the stage for more successful transactions and more satisfied buyers and sellers.
To view the complete February 2016 Market View report, including commentary by Joe Carpenter and his proprietary charts, follow this link.
If you are wondering how these trends may impact your own plans to buy or sell, contact Fleisher Real Estate today to begin the conversation.