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.
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.
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.
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!
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.
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.
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.