This is an update on the Gunnison/Crested Butte real estate market sales and property values, plus news on the National Real Estate Market. There are strong signs that our sluggish market of the last two years is coming to an end.
Projected sales for 2008 is higher than sales of 2006 and 2007 with our lowest sales occurring in 2007. The local residential market has been gaining momentum and there are more properties sold and under contract now than anytime during 2006 and 2007. In the last two weeks there have been 11, $1.5 homes going under contract and sold. Home sales this year of $1 million or more has already doubled that of 2007 and high end condo sales is on a consistent recovery.
There have been many opportunities to purchase properties below current market value from over-extended Sellers. Locals, investors and visitors are taking advantage of their purchasing power and entering into contracts. As you can see by the Average and Median Sales Graph prices overall have not dipped lower, in fact all values have increased over the last three years. Median prices have dipped lower on condo sales in 2008 and this would seem to indicate that investors have been purchasing the lower priced opportunities which may be the beginning of a market recovery.
Current sales in 2008 for condominiums is $32,156,880 and $34,603,250 for single family homes. Given that we historically sell 50% of our inventory in the last six months of the year and two months of that period have passed I have estimated projected sales of 2008 should increase 34% by years end. For the sake of analysis I have placed $55,939,584 of The Lodge at Mountaineer Square sales to 2005 and $17,012,916 of Cimarron under contracts to 2007 as this in when the units were put under contract and better represents the demand on the market at that time.
CBMR’s dedication to marketing, over 6000 new seats of direct flights, numerous mountain improvements, future developments including the North Village, Red Lady Lodge, North Mountaineer Square and their devotion to making the Snodgrass Ski Expansion a reality has a direct correlation with current sales and increased values. This could be the first sign of an upward trend that may exist until we have reached values equal to that of Telluride, Vail and Aspen. With interest rates near all time lows, it is the best time to purchase in Crested Butte.
Crested Butte, famously dubbed “the last great ski town in Colorado,” is in a league of its own. Over the past nine years, properties in Crested Butte have appreciated on an aggregate level more than any other ski resort in the West, while harboring prices that are still 25-260 percent less than other destination ski towns, according to a recent study by National Valuation Consultants (attached). This appealing combination of growth and affordability makes the Crested Butte scene unique among destination ski resorts.
-When you read about home price statistics, you often find the words: Median and Average. There’s a BIG difference.
MEDIAN price is the value halfway between the least expensive and most expensive homes sold in an area during a specific period of time. During that particular period, half the buyers purchased homes that cost more than the median price and half the buyers purchased homes for less than the median price.
The AVERAGE home price is the sum of prices of all homes sold in a certain area in a particular time period, divided by the number of properties sold in the same area in that period.
Please review the articles below, graphs and market report attached and call me anytime to discuss our market and available properties that may suit your needs.
High Times Roll On For High-End Condo Market:
A Win-Win Situation:
Foreigners Continue to Come to America Buy Homes:
Home Prices Start to Show Signs of a Turnaround
HOUSING, REAL ESTATE, LAWS, LEGISLATION, CREDIT CRUNCH,
| 12 Aug 2008 | 02:25 PM ET
The United States is still suffering the worst housing market downturn since the Great Depression, but a slew of factors suggest the worst may soon be over.
Among the strongest signs that the the hard-hit sector could be recovering, home prices in many regions of the country are now falling at a slower rate, after two years of declines, and in some areas prices have actually risen.
The battered housing market is critical to the U.S. economy, with impact from the construction industry to the sale of appliances and furniture.
After hurting growth in recent quarters, an improvement in the housing market could portend a turnaround for the world’s largest economy, which many say is either on the brink of a recession or already in one.
“Anybody who tells you they know when the housing market will bottom is delusional, but anybody who denies there are some positives out there that could make the housing market bottom fairly soon is equally delusional,” said Karl Case, the co-developer of a widely watched gauge of the housing industry and an economics professor at Wellesley College in Massachusetts.
The Standard and Poor’s S&P/Case-Shiller Home Price Indices, which Case co-developed, has shown a slowdown in the fall-off in home prices in recent months. Other data also show signs of a bottom in house prices.
New housing starts fell to 975,000 in April from a peak of 2.27 million in January 2006. In the past 35 years, in the three other times that starts fell from more than 2 million to under 1 million, housing market activity rebounded within a quarter, Case said.
Residential construction as a percentage of real gross domestic product, however, is below the historical bottom, Case noted.
Case, whose research has focused on real estate markets and prices for over 20 years, said certain regions of the country now look similar to when they bottomed in past down cycles.
A bottom in the battered U.S. housing market may emerge first in California, one of the states hardest hit by foreclosures and where home prices are dropping to a point where the cost of a mortgage and taxes equals rent.
“The key is to try is to get some stability in the price of homes, which appears to be happening in California,” said veteran banking analyst Charles Peabody, of Portales Partners in New York.
And as goes California, the most populous state, so goes the rest of the United States, according to Peabody.
“California is the linchpin and so if the region flattens, that changes everything,” Case said.
Among the signs of a turn in the housing market, on a year-over-year basis, the S&P/Case-Shiller 20-City Composite Index was down 15.8 percent in May, but on a month-over-month basis home prices only fell 0.9 percent, the smallest monthly drop since September 2007.
And while on a year-over-year basis all 20 metro areas surveyed reported a decline in home prices, on a month-over-month basis home prices actually increased in eight metro areas in April and in seven metro areas in May.
In March, only two metro areas showed prices rising month-over-month.
In a separate index published on Tuesday by Integrated Asset Services, the IAS360 House Price Index, home prices rose 1.1 percent on a national level in June from May.
In addition, U.S. home sales contracts signed in June unexpectedly rose across the country to their highest level since October.
The National Association of Realtors said last week its Pending Home Sales Index, which is based on contracts signed in June, was up 5.3 percent to 89.0 from a downwardly revised 84.5 in May.
“The data came in much better than we were expecting and much better than the market was expecting,” said Michelle Meyer, an economist at Lehman Brothers in New York.
“I think a lot of the increase has to do with foreclosure sales, which are selling at a quicker pace and have a faster turnaround time.” Meyer said foreclosure sales, which have dragged overall home prices down, should help shave off what is widely considered one of the top problems facing the market: an unwieldy supply of homes for sale.
“Housing market data is certainly showing early signs of stabilization on the activity side and home price side,” said Torsten Slok, senior economist at Deutsche Bank in New York.
“We are not at the end of tunnel yet, but more indicators are starting to look as if we are at least getting closer to it.” Housing legislation signed into law last month offers a tax credit to first-time home buyers and aims to ward off some foreclosures.
It also shores up Fannie Mae and Freddie Mac, which own or guarantee nearly half of the entire, $12 trillion U.S. mortgage market.
“When you are fighting a war, you need as many soldiers as possible,” Case said.
Copyright 2008 Reuters.