Realtor | Corey Dwan

Cell 970.596.3219
Corey.Dwan@SothebysRealty.com

 
 

April 2010 - Market Report

 

 

Hi Everyone,

Well spring has arrived and the days are warmer and longer making for a brilliant last week of skiing before our cherished Crested Butte Mountain Resort closes for the season. Kicking off this last weekend was Yonder Mountain String Band who rocked the base area just in front of Elevation celebrating the sixth year the Muellers have been managing our mountain. Kind of appropriate we had a bit of a celebration as we have seen a 29% jump in sales from the first quarter of 2009.

We have had $13 million in sales of homes and condos so far this year in the upper valley and the trend shall continue with over $11 million of homes and condos currently under contract. The current market place has created some unbelievable deals as much as 50% off of the high of the market. One example being a three bedroom, three bath West Wall unit with a listing price of only $390 a square foot. With units selling as high as $818 a square foot in 2006 this demonstrates a discount of over 50%.

Bank owned properties remain the leaders in the downward pull on the market establishing the lowest priced property in the valley. As some sellers become more desperate to sell they are forced to lower their prices to compete. Best thing is these low priced properties are selling with 27 properties sold in the upper valley this first quarter verses 19 sold in the same time in 2009. This tells me that many buyers feel we have reached the bottom of the market and now is the time to invest. I would highly encourage anyone interested in purchasing to contact me with your property specifics so I can start searching for listings that would suit you now. The off season is one of the best times of the year to realize great investments as sellers know they have to wait until July before the market picks up again for the summer. Please have a look at my listings below as there have been some drastic price reductions and/or visit my newest website at www.CrestedButteForSale.com to search the entire Gunnison Valley MLS by yourself, set up new listing notifications automatically and review a wealth of local information.

Corey's Featured Properties

Another trend I have noticed is the lack of land sales compared with years past. With only $1.3 million in land sales in the first quarter of 2010 for the upper valley I think most buyers are seeing such great values in single family home prices they are struggling to make sense of the numbers to purchase and build. With some home prices below replacement costs it is hard to justify buying land. That being said if the price is right it can make sense. See this drastic price reduction of this beautiful lot, 27 West Silver Sage, with private fishing rights and easy access to the Robert Trent Jones Jr. Golf Course, recently reduced by over $75,000, priced now at only $249,000. That is over $290k less than the other nearest listed lot! 116 White Stallion Circle is the least expensive lot in the upper valley period. It is not deed restricted and enjoys tremendous views of all the surrounding mountains. Located in a beautiful development just outside Crested Butte and home to Crested Butte's only private airplane runway.

While many of us have heard news of ski resort failures, declining skier visits and global warming one would think the ski industry is in a negative state. Yet, according to a recent industry report, the U.S. Ski Industry continues to rack up revenues. Ski resorts in the United States have shown steady increases in revenue over the last five years, according to research firm IbisWorld. The New York Times ran an article recently about the results of an IbisWorld report on the state of the United States ski resort industry. In 2009 the U.S. ski resort industry reached $2.6 billion in revenues and IbisWorld is forecasting a 6% increase for 2010 or $2.72 billion in revenues.

Luckily, or more likely in a very wise business move, the Muellers sold all three of their ski resorts, including Crested Butte Mountain Resort, to CNL Lifestyle Properties, INC for $132 million.

CNL Lifestyle Properties is a real estate investment trust (REIT) that invests in lifestyle properties. The company acquires properties and leases them primarily on a long-term, triple-net basis to tenants that operate the properties on its behalf. CNL Lifestyle Properties focuses on investing in lifestyle properties with the potential for long-term revenue generation based on demographic trends, associated concentrations of wealth, and other proprietary underwriting models.

With a lease back in place the Muellers will continue to manage the mountain for 40 years but now with the backing of one of the worlds leading resort property holdings trusts. Those who doubt CBMR's ability to move forward with the North Mountaineer Square, the North Village and Snodgrass Mountain only have to look at the backing of CNL to know these improvements are coming. I assure you the Crested Butte Mountain Resort is working harder than ever behind the scenes to have these projects proceed. Recently, CNL completed more than $23 million worth of improvements at their Cypress Mountain Ski Resort in Vancouver, B.C. just in time for the 2010 Olympic Winter Games. The improvements had been planned for many years and were prioritized when CNL purchased Cypress Mountain in 2006 for $47.5 million.

Please take a moment to review the Market Recap below, associated sales records and news articles. I am leaving for Nicaragua tomorrow until the 8th of April but I will have constant email contact and will be reachable on my world wide cell, 970-325-3219. So feel free to contact me anytime with any questions or requests. Have a great day and thanks for taking the time to read my Crested Butte market update.

Cheers,
Corey

Corey Dwan - REALTOR
Benson Sotheby's International Realty
P.O. Box 210
433 Sixth Street
Crested Butte, CO 81224
970-596-3219 Cell
970-325-3219 World Wide Cell
970-349-6653 Office
970-797-1810 Fax
www.CrestedButteForSale.com

 

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Market Update

Is it Time to Get Off the Sidelines?

by Iyna Bort Caruso

Talk of boom times may be premature, yet real estate experts are cautiously optimistic, using terms that haven?t been part of the vernacular in a while. Opportunity is chief among them.

After a period of historic lows, the National Association of Home Builders predicts housing production will rebound by about 25% this year. And, and the National Association of Realtors (NAR) weighed in with more encouraging news. NAR Chief Economist Lawrence Yun expects homes sales to increase by at least 10% and home values to rise by 3% in 2010. The impact of homebuyers tax credits in the first half of the year and expected job gains in the second half will boost sales activity and reduce inventory.

Although the $8,000 tax credit stimulus is only for first-time homebuyers, expect the estimated 900,000 who will be taking advantage of the provision to create a trickle up effect, says Scott Street of Street Sotheby?s International Realty in Columbus, Ohio. ?It takes time, but it?s absolutely working.? Beyond that are the still-low interest rates. Street is hopeful about the outlook for 2010 because of ?the combination of these events, along with pent-up demand from those who?ve been waiting on the sidelines a couple of years and are now coming back into the market.?

Click here to read the full story from the Business of Extraordinary Living...

 

Can you still get a 5% mortgage?

by By Les Christie on March 24, 2010

NEW YORK (CNNMoney.com)

There's still time to get a 5% mortgage -- but the window is closing. On April 1, the government will stop buying mortgage-related debt, which will send interest rates slowly higher. Since November 2008 the Federal Reserve has snapped up $1.25 trillion worth of mortgage-backed securities -- essentially, people's mortgages bundled together and sold to investors. The program has kept interest rates artificially low over the past year, with the price of a 30-year fixed-rate loan ranging between 4.93% and 5.09%, according to mortgage giant Freddie Mac. That's about 0.4 percentage points lower than these loans would have been without the government's intervention, according to Jay Brinkmann, chief economist for the Mortgage Bankers Association.

Click here to read the full story...

 

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