Richards: Where Homebuyers Can Find Bargains
Home prices aren’t on the decline, at least not to the extent we experienced during the economic crisis in 2008. A few weeks back, I explored the trend and stabilization of property values. It’s essential to understand that spending time in the market is more critical than trying to predict the perfect buying or selling moment, which is nearly impossible to pinpoint.
Even though many economic indicators suggest housing values might stagnate, there are still certain markets and specific types of homes where bargains are available. For instance, Colorado ranks second, just behind Arizona, in active housing inventory, gradually returning to pre-pandemic levels. During the pandemic-driven housing boom, low inventory and high buyer demand pushed prices upward, while post-pandemic interest rates have led sellers to hold onto their properties.
Factors contributing to the surplus include the fact that many homebuyers who purchased in 2022-23 did so at the market’s peak. Economic uncertainty, inflation, and higher interest rates have put financial pressure on these newer homeowners, prompting some to sell.
Additionally, the insurance crisis affecting multifamily condominium units and their aging structures plays a significant role. Many homeowners’ associations are struggling to maintain insurability guarantees. Natural disasters like fires, floods and hail have burdened insurance providers, leading to higher premiums or dropped policies in specific neighborhoods. Aging structures requiring costly repairs, such as roofs, boilers, and common areas, have become burdensome, saturating the market with condominiums and townhomes from owners eager to sell.
Most of this rising inventory is in the Denver metro area. In 2024, there were 3,336 condominiums on the market. This year, the number has grown to 4,125, marking a 21% increase. In Eagle County, the number rose from 619 in 2024 to 662 this year, a 6.5% increase.
For a specific example of price corrections, in November 2023, a two-bedroom condo at the Villas of Brett Ranch in Edwards sold for $775,000. By April 2025, a similar condo in the same complex sold for $620,000. Currently, there are four units for sale in that complex. Recently, HOA dues increased from the mid-$300s to over $700 per month due to new roofs, boilers, and rising insurance costs. This situation is driving prices down and prompting some to sell.
The motivation for selling isn’t solely due to increasing association costs and deferred maintenance. However, the data clearly shows that when inventory goes up, prices tend to go down. If you’re navigating this market, it’s crucial to evaluate your financial situation and consider the long-term investment. Keeping an eye on specific markets where deals might be available and staying informed about changes in HOA dues and insurance costs will also be beneficial.
Understanding these dynamics can help you make informed decisions in a fluctuating market. Whether you’re considering buying or selling, knowing the trends and challenges can guide you to the best opportunities. Would you like a deeper dive into how these factors specifically impact your local market?
Ryan Richards is the growth director and a luxury real estate agent at Keller Williams Mountain Properties. He is the founder and co-owner of the Bunkhouse, Vail’s first and only boutique hostel. You can find him at RyanRichards.com or 970-401-0720.
The insurance crisis affecting multifamily condominium units and their aging structures plays a significant role
So, get uncomfortable. What’s your Cable Lane?
A trip to New Orleans isn’t complete without indulging
During the summer of 2007, just months before my wedding and at what felt like the pinnacle of my life,
Buying a home is a big decision – particularly your first home.
We will explore three more components of the first-time homebuying experience so you can embark on it.
We’ll continue to add to your homebuying knowledge base with tips featured.
In this section, we will cover the home stretch of your homebuying experience, “closing,”.
Reach out for a knowledgeable, professional real estate experience. I listen closely to your needs, using my expertise to solve problems and streamline the buying process. Let’s make your real estate journey a success.