5 Crested Butte Luxury Real Estate Trends

The Report prepared by Coldwell Banker Global Luxury highlights 5 trends that emerged during 2020, and I provide observations how this has impacted the luxury Crested Butte Real Estate market. These five trends showcase how the affluent have reacted to covid with changes in their lifestyle and how this in turn affects their luxury real estate needs and wants. I agree that these five trends will continue through 2021.

I have added my observations as to how this has impacted the Luxury Crested Butte Real Estate Market.

1.  Intangible Wealth

In the face of the pandemic, intangibles—family, health, space, and security—are the new luxury. Luxury homebuyers are looking for homes that offer these intangibles.

In the Crested Butte market we have seen buyer demand increase for – new modern interior design, more office space for owners and guests to work remotely, a room for connected health equipment (Peloton, NordicTrack, Mirror, Tonal), updated A/V and or media room for Movie/TV streaming (Netflix, Amazon Prime…). And the importance of internet speed, and cell service to stay connected is very important.

2. Big is Back in Vogue

Gone are the days of “less is more”. A study by Power Markets showed that nationwide the number of homes sold over 5,000 sq. ft. increased by 17%. Likely influenced by pandemic distancing, buyers are looking for privacy, seclusion, and enough space to live, work, and play comfortably.

We see this evident in Crested Butte new home construction with more space – especially a bonus room, large garage, and the ability to accommodate family, friends and clients to live, recreate and work remotely comfortably. The majority of Crested Butte home Buyers seek a minimum footprint of 4 bedrooms, 4.5 baths, an open living area, a bonus room, outdoor living space, and 2 car garage with ample storage space.

3. Investment Diversification of the Affluent

Market volatility in 2020 created a high level of disparity in the S&P 500. The lowest dips, notably in the energy sector, were matched by massive growth in tech. The residential real estate market boomed despite—or perhaps as a result of—the tumultuous market.

For the luxury single family homes sold in Crested Butte in 2020 between $1M – $2M, 60% of the transactions were conventional loans and 40% cash. For the homes sold above $2M there were fewer homes financed as cash buyers increased to 49%.

4. Real Estate Resilience

Uncertainty in all walks of life during the pandemic was underpinned by resilience in the residential real estate market.

Crested Butte saw a significant increase in buyer demand. Prior to Covid, most buyers could only vacation in Crested Butte for a couple weeks a year – and a second home for many did not make economic sense. The flexibility to work remotely was a game-changer as many breadwinners realized they could work from Crested Butte for weeks at a time.

5. New Demographics: The Next Normal

The pandemic caused many to reevaluate their priorities and lifestyle, and the normalization of remote work opened the opportunity of homeowning in a variety of new frontiers. This change in mindset and lifestyle created a new demographic called “Affluent Trailblazers”, who defy traditional categorizations of net worth, age, or gender.

Crested Butte has long seen the subcategory of “Resorters” flock to Crested Butte for the active lifestyle in the mountains and the benefit of three distinct seasons Winter, Summer and Fall with the variety of outdoor pursuits. The demographic of these Resorters is typically affluent couples with adult kids, over the age of 54 who are establish business owners, or corporate executives and who have worked hard to be in a position to enjoy a second home, and as we have seen with Covid – the flexibility to work remotely, and create a lifetime of memories.

Click here to see The Report 2021. take a look to get top trends, landmark listings and sales, changing buyer preferences, the latest U.S. power markets, and more.

Are You Considering Buying or Selling a Home in the Crested Butte Area?