2024 has been an interesting year for Real Estate. Whilst we have seen some significant changes in the way that our compensation is treated, (and I have recently posted a buyer representation post here), the reality is that whilst the framing of the matter has changed, the fundamental trends of compensation and negotiation remain. The higher level of transparency can only be a good thing in my opinion.

 

What I really want to discuss is the increased strength and performance of the luxury market in 2024. Is this the expansion of the $4m+ market in more fundamental terms? Or is this simply a shorter-term reaction to immediate influences?

 

To start with let us look at some of the metrics that support the need for discussion.

 

Breckenridge Single Family Homes – last 6 months.

 

$4m+

# of sold / pending properties -                       32

# of active listings -                                         35

Days on market -                                            88

% sold of list price -                                        94.58%

 

Pending and Sold properties represent similar numbers as active listings. Equates to approx. 6 months’ supply, which is very low for this high dollar market.

 

$1m - $4m

# of sold / pending properties -                       79

# of active listings -                                         75

Days on market -                                            56

% sold of list price -                                        95.74%

 

Pending and Sold properties represent similar numbers as active listings. Equates to 6 approx. months’ supply. It is interesting to see that both these segments show strong parity.

 

Why is the high end of our market performing as strongly as it is? I think you can point to several factors.

 

1.      People are pulling money out of the stock market and investing in a longer-term asset.

2.      With it being an election year, people are hedging against more volatile asset classes.

3.     Buyers in this category are less affected by the conventional lending system as well as the recent restrictions imposed on short term rentals.

4.     Finally, and this is more a comment for debate and longer-term analysis…. Is Breckenridge breaking through a perceived luxury ceiling and aligning itself more with other very high value markets such as Vail, Telluride and Aspen? Breckenridge has always represented value when compared to these markets. Now that it has an inventory of luxury homes and numerous fine dining options – there is a logic to the argument that the market is becoming more exclusive.

 

It will be interesting to see how the real estate responds in the New Year, once the election has fully settled. If you would like any more details or statistics on a particular segment of the market, please do not hesitate to ask.