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Western ski real estate bargains

post #1 of 7
Thread Starter 

Recent NYTimes article on the significant price reductions occurring on real estate at many major Western US ski areas (and to lesser degree in East):  http://www.nytimes.com/2010/01/29/greathomesanddestinations/29skicondo.html?pagewanted=1

Not surprising, just kind of interesting to hear of specific and very large "markdowns".  For you folks who live/own at some of the resorts mentioned, do you concur with the trends noted in article?

post #2 of 7
Yes, this is really a buyers market in Aspen.   Condo's are hold up pretty well, just because more people can afford them.  The guys holding the high end spec homes are taking a bath. 

One of my bud's was doing very well,  building one or two $5-6 million dollar spec homes a year.  Then he got greedy and shot for "the last deal I'll ever have to make".  Now he shovels my snow!
post #3 of 7
This is a decent time to buy resort real estate, at least from what I've seen.   Generally I agree with what's said in that article.  One thing to keep in mind, resort real estate doesn't always track along with general housing trends in the US.  It's possible that if we see an uptick in the general stock market that we'll see resort real estate tick upward on a similar trend.  

Now, one thing I haven't seen a lot written about with regards to resort real estate has to do with the massive "shadow inventory" that's lurking in this country.  It doesn't get a lot of press, but the number of homes that are waiting to be foreclosed on, or the number of homes where the owners have simply stopped making payments, seems to be pretty large.  Also, there's a lot of development in various stages of completion right now with the development either slowed or completely stopped.  Resort real estate has been hit by this and I don't think anyone has a clue to what extent.  Once the low to mid-range market has stabilized, and I don't think it has, I suspect we're going to see banks go after the high-end real estate.  They seem to be VERY reluctant to do that right now.  I know several homes that the owners have basically walked away from that the banks haven't even started foreclosing on.  With that comes another set of problems in a ski environment - if the owners aren't paying the mortgage, do you think they're paying the heat and water bill? 

So, if you're shopping, I'd recommend talking to some property management companies first to get a feel for how bookings are.  Ask them what their take on the real estate market is and get them to recommend a realtor.  Chances are one of their friends is a realtor, but they can offer you some good local advice.  With regards to construction, you might find that purchasing a lot and building a custom home can be done for half the price compared to a few years ago.  If you're looking for something in Summit Co or Big Sky, I might be able to refer you to some good contacts.
post #4 of 7
I'm doing a little remodel this spring and numbers are about 60% of what they were just two years ago.
post #5 of 7
Bend, Oregon lead the country in the run-up, and has done as well in the decline.  The median price has been cut in half.  Some of the auctions and short sales have been spectacular.  One in my neighborhood sold for 540K at couple of years ago just went for 180k at auction.
post #6 of 7
In the article, the Telluride realtor says that they haven't felt the pricing pressure.  I sold my place in Telluride about 3 years ago and friends who still own there tell me that the market is horrible for sellers.  Lots of new development sitting empty or not finished.  I love Telluride, but their real estate hype machine is a little much.
post #7 of 7
That's what's happening in Summit County too.  Realtors keep telling their seller clients to keep their prices up.  Probably because a lot of realtors here have heavy investments in housing.  More than half the residences in the county are some form of second home.
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