This recreation hotspot has record-high home sales—and it doesn’t show signs of stopping this year.
Known for its incredible skiing, celebrity sightings, and world-class amenities, Aspen has long been a retreat for the wealthy. When the pandemic struck, the hospitality industry took a big hit—but Aspen real estate got even stronger. Here’s why the area remains an excellent investment opportunity and why it will continue to grow through 2021.
Aspen is a vacation hotspot
Aspen will continue to be an exclusive destination because of the limited square footage available. With four ski mountains and more than 336 skiing trails, 40 high-quality lifts, and thousands of highly trained, skillful instructors, Aspen is the premier destination for skiing enthusiasts. Aspen is truly a destination for every season. Outdoor activities in addition to skiing include biking, snowmobiling, horseback riding, golfing, fishing, rafting, and paddleboarding. Residents and vacationers alike enjoy Aspen’s renowned cultural activities and events along with notable art galleries, fine dining, and luxury shopping. Aspen also hosts fantastic festivals such as the Aspen Music Festival and the Aspen Ideas Festival.
Aspen has become a destination for work-from-home employees
Once the pandemic hit, Aspen became a haven for high earners who wanted to be near exceptional restaurants, unparalleled ski conditions, and a multitude of outdoor recreational activities. While this recent trend has spelled disaster for economies like New York’s, it’s meant nothing but positive news for Aspen.
As Manhattan continues to lay off workers and their consumer confidence drops, Aspen has been attracting new residents and is seeing record-high home sales. This is especially true with luxury Aspen townhomes and other high-end Aspen real estate. Because Aspen is a relatively expensive place to live, it has appealed to those with enough disposable income to enjoy a comfortable lifestyle and make significant property investments. These new residents will likely keep their Aspen homes even if they do return to offices in other parts of the U.S., either full or part-time, meaning there will not be a mass sell-off that would damage the market.
Aspen values are increasing
With steady growth in value for Aspen real estate, investors view it as a stable market worth investing in. Home values in Snowmass and Aspen have grown by 6.2% since 2019, with median values now at $2.1 million. The average home sale price increased to $6.6 million in 2020 from $4.1 million in 2019. Most experts predict that Aspen real estate will continue to appreciate, which will entice even more investors. This will lead to a cycle of increased interest plus rising prices, a recipe for success for the Aspen real estate market.
How to take advantage of the Aspen real estate market
All evidence points to Aspen being an excellent place to buy a primary residence, vacation home, or investment property. However, the interest in the area has created a strong seller’s market and record-low inventory. That means it may be difficult to find a property you’re interested in and get an offer in before someone else snaps it up. In a competitive market like this one, it's smart to work with an experienced Aspen luxury broker who can alert you to properties that have just been listed or that will be listed in the near future. A luxury broker who has extensive connections in the community can learn about homes long before the general public does, giving you a leg up on the competition.
In addition to working with an agent, here are some other tips to help you take advantage of Aspen’s red-hot market:
- Be prepared to buy. Before you have your agent schedule showings of Aspen townhomes or other properties, make sure you have all your paperwork ready. This includes a letter of preapproval from your mortgage lender. Most sellers won’t even consider an offer from a potential buyer who is not prequalified in a seller’s market. You should also do your due diligence on the property before you visit it in person. This will allow you to make a quick decision and a swift offer should you like what you see.
- Understand that perfect may not be possible. When looking at Aspen real estate, you probably have a lot of items on your wishlist. However, with a lack of inventory on the market, you may not be able to find a property that ticks off all your boxes. Make sure you prioritize your list and designate what are must-haves that you could forgo if necessary.
- Look at listings daily. If you’re looking at online listing sites, check back daily (or more often if they are updated multiple times per day.) Even better, work with an agent who can send you an alert every time a property that meets your criteria is listed. Waiting just a single day to view a property could mean losing out to another buyer.
If you’re interested in capitalizing on the booming Aspen real estate market, now is a better time than ever. With record-high values and low mortgage interest rates, the possibilities in Aspen and Snowmass are endless. Work with a knowledgeable Aspen luxury broker like Steven Shane to find a property you’ll love and craft an offer that will beat out your competition.
