Economic Overview

Aspen Snowmass

The median price of a single-family home in Aspen for the first half of 2023 was $11.5 million, a 20% decline compared to the first half of 2022, while the average price declined 27% to $14.3 million. The Aspen townhome and condominium market remained relatively unchanged from last year, with a median price of $2.9 million and an average price of $4.6 million. In Snowmass Village, the single-family median price declined 11% to $5.4 million while the average price rose 4% to $7.4 million. Snowmass Village townhomes and condominiums saw the largest gains in the area, with the median price increasing 18% to nearly $1.8 million and the average price rising 12% to $2.3 million. Across the Aspen/Snowmass Village area, closed sales were down about 3% compared to last year but declining prices brought overall dollar volume down by 24% to $1.1 billion. The percentage of sold price to original listing price was down about 4% across the area and days on market generally declined compared to last year for single-family homes and rose for townhomes and condominiums.

As sales have slowed over recent months, it is likely that some potential Aspen buyers may be sitting on the sidelines in a “wait-and-see” mode to see if the Fed can achieve the much hoped-for soft landing. The most recent inflation data suggest that the actions of the Fed may be working, and while at least one more rate increase is inevitable, the likelihood of an additional hike this fall is up for debate. That means that the Fed may begin to consider when interest rates can come down. Once that happens, we may see activity pick up as interest rates decline and the number of listings improves. While the IPO market is certainly not as strong as it was in 2020 and 2021 when interest rates were incredibly low, it is meaningfully improved over 2022. The stock market has largely recovered about half of the losses of 2022, which should strengthen portfolios, especially for those with stock options. The lack of inventory continues to be the key challenge for the Aspen and Snowmass Village real estate market. Dr. Eisenberg comments: “We saw a huge run-up in housing demand across all markets and price ranges during the worst of Covid, and it is likely that demand will return to more normal levels going forward. While single-family home prices in Aspen have declined compared to 2022 levels, what I would concentrate on is cost per square foot, and the average sold price per square foot has remained steady in Aspen and has increased by 7-8% in Snowmass Village. This remains one of the tightest markets in the country.”