Vail Home, Sales Price Trends
This article authored by: Rob Hallberg
I researched home sales in Vail over the last 180 days and compared prices for the first 3 months to the last 3 months. For Single Story homes, prices have increased about 1.3% in the March 11th to June 10th time period as compared to December 11th to March 10th. This is consistent with most of Tucson, where home prices are increasing between 4% and 5% annually.
I ran the same comparisons with Two Story homes and found much different results. Prices on Two Story homes have actually dropped 1.85% for the past 90 days as compared to sales in the December 11th to March 10th time period. I was surprised, so I did a little more research.
I decided to remove the features that affect sales prices and are easy to identify to see if there were more homes with these features in the first 90 days, which would result in them selling at a higher price.
Two features that are easy to remove are Pools and 3 Car Garages; Unfortunately, I cannot account for a home’s condition or location (near a road, open, mountain views, etc.) which could also have an impact on sales prices.
Once I removed Pools and 3 Car Garages there was still a price drop from the December – March period as compared to the last 90 days; however, prices dropped an average of 1.49% instead of the 1.85% I calculated earlier. But why would two story homes drop in price as compared to singles story homes?
I believe it could be interest rates. Homes that were purchased in December of 2018 had the highest interest rates since February of 2011! Interest rates were running close to 5% which impacted the sale of all homes, especially higher priced homes.
Two story homes are usually larger than single story ones and sell at a higher price – over $300,000 in some cases. Higher prices combined with the highest interest rates in 8 years likely caused Buyers to consider smaller and lower priced, single story homes.
Single Story homes were also selling much faster than Two Story homes; the average days on market for Single Story homes was about 46 days as compared to 59 days for Two Story homes. Sellers were forced to lower prices to remain competitive.
With the recent drop in interest rates I don’t see two story home prices falling any further; in fact, as demand increases prices will likely increase slightly.
It’s a good market for Sellers as homes are selling quickly! Let us know if we can help you in the sale of your home or the purchase of a new one. Thanks!
Rob and Catherine Hallberg are Associate Brokers with Long Realty, a Berkshire-Hathaway Affiliate and Southern Arizona’s largest Brokerage. Send Rob and Catherine an email for a fast response to your questions; for an even faster response, Call (520) 407-8667 or Text (520) 203-2031.