Updates from Sally Shiekman
As a seasoned broker with deep roots in Aspen, Snowmass, and the Roaring Fork Valley, I’m passionate about sharing insight into our dynamic markets. Whether you're buying, selling, or simply staying informed, my goal is to help you navigate with clarity, confidence, and a local’s perspective.
Unstoppable Aspen
November 11, 2023
A million dollars here and a million dollars there, and before long, we are talking real money! Is now the time to sell?
The luxury real estate market in Aspen is defying gravity. While the rest of the world grapples with economic uncertainties, Aspen’s elite property scene continues flourishing. It's a question on many homeowners' minds: In this current sellers' market, driven by low inventory, is now the opportune moment to put your property on the market?
Since 2020, Aspen has witnessed a seismic shift in its real estate dynamics. With the influence of the pandemic, the wealthy sought refuge in the mountainous enclave, escalating demand in an already exclusive market. Homes priced at $30 million and above have become hot commodities, with sales skyrocketing from a mere two in 2020, one of which I represented, to 17 the following year, as reported in a recent Wall Street Journal analysis.
Take Michael Klein's story, for example. His 9,000-square-foot home, a property he had just finished building and was renting out for over $300,000 a month, caught the eye of a buyer willing to pay a staggering $60 million. This transaction isn't an outlier; it reflects a new norm in Aspen's real estate echelon.
But what fuels this unprecedented spike in property values? A cocktail of tight inventory, building restrictions, and the city’s limitations on new construction has created an environment where existing properties, especially large and newly built homes, are seeing their prices balloon. Pitkin County, where Aspen, Snowmass, and much of the region presides, has also enacted new limits on new large home construction, driving the price up on existing limited inventory.
Real estate in Aspen has always been a hot commodity. Still, with new proposals that could slash the maximum buildable square footage, the current stock of expansive homes has become even more precious. Buyers are rushing to secure these grand properties, knowing full well that the opportunity to build something similar in the future may be limited or impossible.
The seller’s advantage is palpable. More than half of the transactions exceeding $20 million are happening off-market, often fetching even higher prices because, as it turns out, people will pay a premium for what isn’t readily available.
The allure of Aspen extends beyond the slopes. Its vibrant restaurant and retail scene cements its status as a year-round haven. This, combined with its natural beauty, has solidified its appeal to high-net-worth individuals seeking more than just a seasonal retreat.
Sellers like fashion icon Tommy Hilfiger, who flipped a slopeside home for a $19 million profit just three months after the acquisition, exemplify the gains to be made in this market. And then there's the Lemkins, who, after acquiring a downtown mansion for $60 million, listed it a year later for $70 million.
Despite the obvious profit potential, it’s important to remember that these luxury homes are not just buildings; they're investments of time, millions in construction, and sometimes, a fair share of headaches given Valley’s unique building challenges.
As you ponder the possibilities, remember that the market is ever-changing, but as of now, in Aspen, the numbers speak for themselves. A deep dive into this phenomenon is available in a detailed article by E.B. Solomont in the Wall Street Journal titled "Record Sales and Off-Market Trades: Why Aspen’s Luxury Market Seems Unstoppable."
For those considering whether to 'sell or hold,' Aspen's market presents a compelling argument. With such a lucrative market, the question isn't whether you could sell but whether you can afford not to.
Whether you’re a potential buyer, seller, or just an observer, the Aspen, Snowmass, and the Roaring Fork Valley market's current enthusiam is certainly worth your attention.
Call me at 970-948-7530, and let me put my 30-plus years of “Mountains of Experience” to work for you.
The luxury real estate market in Aspen is defying gravity. While the rest of the world grapples with economic uncertainties, Aspen’s elite property scene continues flourishing. It's a question on many homeowners' minds: In this current sellers' market, driven by low inventory, is now the opportune moment to put your property on the market?Since 2020, Aspen has witnessed a seismic shift in its real estate dynamics. With the influence of the pandemic, the wealthy sought refuge in the mountainous enclave, escalating demand in an already exclusive market. Homes priced at $30 million and above have become hot commodities, with sales skyrocketing from a mere two in 2020, one of which I represented, to 17 the following year, as reported in a recent Wall Street Journal analysis.
Take Michael Klein's story, for example. His 9,000-square-foot home, a property he had just finished building and was renting out for over $300,000 a month, caught the eye of a buyer willing to pay a staggering $60 million. This transaction isn't an outlier; it reflects a new norm in Aspen's real estate echelon.
But what fuels this unprecedented spike in property values? A cocktail of tight inventory, building restrictions, and the city’s limitations on new construction has created an environment where existing properties, especially large and newly built homes, are seeing their prices balloon. Pitkin County, where Aspen, Snowmass, and much of the region presides, has also enacted new limits on new large home construction, driving the price up on existing limited inventory.
Real estate in Aspen has always been a hot commodity. Still, with new proposals that could slash the maximum buildable square footage, the current stock of expansive homes has become even more precious. Buyers are rushing to secure these grand properties, knowing full well that the opportunity to build something similar in the future may be limited or impossible.
The seller’s advantage is palpable. More than half of the transactions exceeding $20 million are happening off-market, often fetching even higher prices because, as it turns out, people will pay a premium for what isn’t readily available.
The allure of Aspen extends beyond the slopes. Its vibrant restaurant and retail scene cements its status as a year-round haven. This, combined with its natural beauty, has solidified its appeal to high-net-worth individuals seeking more than just a seasonal retreat.
Sellers like fashion icon Tommy Hilfiger, who flipped a slopeside home for a $19 million profit just three months after the acquisition, exemplify the gains to be made in this market. And then there's the Lemkins, who, after acquiring a downtown mansion for $60 million, listed it a year later for $70 million.
Despite the obvious profit potential, it’s important to remember that these luxury homes are not just buildings; they're investments of time, millions in construction, and sometimes, a fair share of headaches given Valley’s unique building challenges.
As you ponder the possibilities, remember that the market is ever-changing, but as of now, in Aspen, the numbers speak for themselves. A deep dive into this phenomenon is available in a detailed article by E.B. Solomont in the Wall Street Journal titled "Record Sales and Off-Market Trades: Why Aspen’s Luxury Market Seems Unstoppable."
For those considering whether to 'sell or hold,' Aspen's market presents a compelling argument. With such a lucrative market, the question isn't whether you could sell but whether you can afford not to.
Whether you’re a potential buyer, seller, or just an observer, the Aspen, Snowmass, and the Roaring Fork Valley market's current enthusiam is certainly worth your attention.
Call me at 970-948-7530, and let me put my 30-plus years of “Mountains of Experience” to work for you.