Aspen is in the heart of the Rocky Mountains and is known worldwide as a luxury ski town, with outdoor pursuits available year-round. Aspen is sophisticated, with stunning views of the Rockies, a brilliant dining and shopping scene, and a quaint feel that inspires cozying up for an apres ski at the end of the day. Although known as a luxury ski destination, Aspen has something to offer year-round. With hiking, mountain biking, climbing, kayaking, and paddleboarding all on offer, Aspen is truly a paradise for those who enjoy the outdoors. There’s nothing like opening your back door to absorb the cool, crisp mountain air as the granite peaks tower overhead.
Aspen luxury homes have everything you could want. With beautiful new construction, homes are modern while embracing the traditional mountain chalet look. Many homes feature open layouts, with large front-facing windows, classic mountain A-frames, and exposed wood beams. Luxury meets mountain adventure in Aspen and homes reflect both tradition and luxury.
Aspen is a highly desired town to live in, and many of the properties are luxurious and exclusive. If you’re hoping to secure an Aspen investment property, you’re not alone. With such demand and limited availability, the real estate market in Aspen is quite hot. You might wonder if the demand will continue to increase and what the future holds for 2023. Our guide will help you understand some of the major shifts happening in the market and how that will impact Aspen real estate.
Increased Interest
One of the most significant shifts in the real estate market moving into 2023 is the increased interest rate on home mortgages. During the pandemic beginning in 2020, home mortgage rates were at all-time lows of 2.75%. As this was happening, the largest generation of individuals, millennials, surpassed the baby boomer generation as potential homeowners. Prior to the pandemic, millennials largely preferred to rent in urban areas. However, with the pandemic causing a decline in the quality of life in urban areas, many millennials looked to move to suburban and rural areas and were interested in buying homes for the first time. During the pandemic, nearly 50% of new home purchases were made by millennials.
During the pandemic, as demand for homes and goods increased, production was slowed due to physical illness and staffing issues, closed borders, and manufacturing delays. People desiring to explore and expand their interests after slowing down had increased demand, which strongly outpaced the availability of many goods. These factors led to an increase in inflation, which reached 8.3% as of August 2022. To curb inflation, the Federal Reserve increased interest rates to slow the demand for goods, which led to a substantial increase in interest on home mortgages. As of October 2022, the mortgage rate for a fixed 30-year mortgage was 6.83%. This increased mortgage rate is expected to slow home sales and decrease demand for real estate.
Changing life dynamics
Another factor affecting the Aspen real estate market is changing life dynamics. During the pandemic, between 2020 and 2022, many people were able to work remotely and choose their location. This led to an increased demand for homes in rural, mountainous, and suburban settings, as people wished to have increased space and access to nature and the outdoors. Aspen is a prime example of this, as it has easy access to some of the best mountains in the country. However, as the pandemic wanes, companies want their employees back in the office. This could result in a decreased demand for homes that are further outside of urban centers.
Slowing sales
With increased interest rates and a shift back to in-person dynamics, there has been a slowdown in the real estate market. Although value continues to grow, the exponential increase in demand and value seen at the beginning of the pandemic has slowed down. Experts predict that there will be continued demand for homes, but at a slower rate than what we’ve seen in the past. For example, the number of sold home listings declined by 38% as of July in Aspen, according to the Aspen Daily News.
Consistent value
Although sales may be slowing down in the Aspen area, experts predict there will be no major decrease in home value. Wealthy Americans have been doing well during the pandemic and are in good shape to continue spending and investing. This means that as more homes go on the market in the Aspen area, there will continue to be buyers for them.
Next steps
If you’re looking to make moves in the real estate market in 2023, there’s no better option than hiring an experienced realtor. Realtors are real estate professionals held to a high standard of ethics. They understand the impacts of changes to mortgage rates and have the expertise needed to analyze market trends and make predictions to help you make smart choices with your real estate investments.
Partner with Jill Shore to find your dream home
Jill Shore is known for her expertise in the luxury Aspen real estate market. Living in Aspen since 1972, Jill is practically a native of the area and understands the natural beauty, luxury, and sophistication that draws people in year after year to Aspen. Jill considers herself a matchmaker between clients and the luxury properties she finds. She enjoys making connections with the clients to truly understand their real estate goals in order to find them the best property possible. Whether you’re buying or selling in the Aspen area, Jill has the experience and intimate knowledge of the Aspen market to help you find your next luxury mountain home.
