Broker Associate at LIV | Sotheby's International Realty based in Breckenridge, Colorado.
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Life as we know it has changed drastically in 2020, and people are looking toward small-town living as they work remotely and blurring the work-life balance boundaries. The migration of wealth out of larger cities is shaping the future of real estate. As a broker of luxury resort real estate in Colorado, I've seen how our area's proximity to nature and seclusion have become among the most desirable assets.
The metropolitan lifestyle has quickly changed, and what once was the attraction has, for many, gone away. People choose the lively city life for the conveniences, such as shopping, transportation and proximity to the office, but those attractions have changed in 2020. With many employees now working remotely, more people are able to work from what used to solely be considered vacation destinations. The vacation home has become an extension of the office.
If you're a newly remote worker with the means to flee the city and are considering a relocation to a more luxurious home in someplace like Colorado's mountains, keep the following in mind.
Luxury At Home
Affluent individuals are being very specific in their tastes and reconsidering their home environments entirely, now that so much more time is spent exclusively at home. Spaces are being reimagined and versatility is the key. As more and more buyers are looking for homes that offer seclusion with direct access to nature as well as proximity to amenities, these are the new luxuries. Functional interior design should allow a seamless work-from-home environment as well as serve as a retreat from everyday life.
Price Tag
The price for luxury real estate is never "discounted." In fact, according to the Summit Board of Realtors, in 2019 a single-family home in Summit County, Colorado (where the county seat is Breckenridge) had a median price of $1,025,000; in 2020, the median price was $1,097,500. This is a 7.1% price increase in 12 months, and the price climb is expected to continue as the real estate inventory is very low. (In the townhouse and condo market, the 2019 median price of $495,000 increased by 14% to $565,000 in 2020.)
With luxury properties priced in the millions, the desire and competitiveness of the market is even greater. It is essential to partner with a real estate prfessional who can help you expertly negotiate. It's important to know that many ultraluxury properties do not even hit the public market, as they are mostly listed by luxury brokers and agents and sold within their network of buyers.
Time To Buy...Or To Sell
Although it is becoming quite challenging to find the perfect property in the Rocky Mountains, if something you have your eye on becomes available, this is a great time to invest. The state of Colorado has become an all-seasons destination, and a mountain property can be a versatile purchase to either use as a work-from-home location or as a rental investment.
On the flip side, as property values are on a steep rise and interest rates remain historically low, this could be a great time to cash out — especially if you are looking for a quick sale. Working with a local real estate professional will be key to discussing your expectations and options for buying or selling.
Final Thoughts
Although it is unclear what the future holds for the real estate industry, the trends that we have observed in 2020, such as the desire to move to locations close to nature, indicate that 2021 will be similar. The migration of wealth and increased interest in resort locations have set a trend that is likely to continue for the next five to 10 years. With this in mind, it is always important to have a diversified real estate portfolio to quickly adapt to changes. That is one of the key lessons from 2020: Adaptability must be part of the new normal. We have seen this firsthand in the real estate market.
The buying and selling of properties has started to happen exclusively on virtual platforms, short-term rentals have in many cases been suspended, low interest rates created a surge of refinancing and residential real estate became the new office building, reinforcing the value of property. Working adults spend now more time than ever at home, and with this change comes the desire to find the perfect fit of ideal locations in which to both work and live.
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