Ask the Expert: The State of the Luxury Real Estate Market
When it comes to a long-term investment like real estate, so many questions can arise throughout the process—and we thought it might be helpful to hear an expert’s opinion on the current luxury real estate market.
Teddy Errico is a native New Yorker with a 22-year track record of success navigating and leading the real estate landscape in Telluride, Colorado, and has been an Inspirato Real Estate partner since 2018. We recently asked him some questions about what he’s seeing lately in the market, both as a whole and in Telluride.
Q: When you’re explaining the benefits of Inspirato to a potential buyer, what resonates the most?
A: The partnership with Inspirato Real Estate creates hassle-free ownership with a team dedicated to manage your property. So as an owner, you know you’re valued and that your asset will generate income, with less overall stress on your end.
Q: What is one of the biggest headaches you see buyers face when they purchase a vacation home?
A: To me, there are two answers to that question. A. If a condominium was purchased, you have to learn to live with short-term rental guests as your neighbor and the quality of the HOA management. Or B. If the purchase was a private home, the biggest headache is the necessary time and investment for the home’s maintenance and remodeling.
Q: Why do you think people choose to invest in vacation homes?
A: In Telluride, at least, our buyers invest in vacation homes so they can be a member of the community and feel comfortable with a resort that they truly love and a lifestyle they fully enjoy.
Q: What hesitations do you see potential buyers have?
A: Buyers often hesitate because they must make sure they’re committed to one resort and balance out the value of real estate in each location. Currently, with the impacts of COVID, buyers also hesitate because of the steep appreciation and lack of inventory to find the perfect home.
Q: What’s one trend you’re seeing in luxury real estate right now?
A: We’re seeing a lot of actual home use—owners are coming out more often to take advantage of their assets.
Q: How has the pandemic shifted the vacation home market?
A: The pandemic forced buyers to look within themselves to determine what makes them happy, and to no longer wait to make their dreams come true. That has led to steep appreciation, in Telluride and other luxury real estate markets, as well as more time locally spent by second homeowners and tourists. In Telluride, we are lucky that our remote location helps to protect the lifestyle and what owners expect from our luxurious resort.
Q: How are people shopping for luxury vacation homes now (website browsing, broker directly, off market, etc.)?
A: The biggest change is the sense of urgency. Buyers are mostly looking online and now having to make offers sight unseen. If they are represented correctly, their inspection period gives the buyers the time to know they made the right choice, with no risk.
Q: What is the Telluride real estate market like right now, and mountain lifestyle markets as a whole?
A: The Telluride real estate market is hot. In 2020, our region surpassed $1 billion in sales for the first time, and is on pace to exceed that in 2021. All Colorado mountain resort towns are seeing a combination of record sales and reduced inventories—as well as a newfound appreciation for what makes us so special.
September 13, 2021
For Real Estate Agents: An Innovative Solution for Luxury Vacation Homes
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