Colorado ski real estate doubles, will there be a drop on the other side? 5 factors that will shape the future
The amount spent on real estate in six of Colorado’s resort-anchored counties doubled from 2019 to…
The National Association of Realtors released their 2019 US Vacation Homes Report; Colorado made quite the splash with 6 of the top 10 most expensive towns and 5 of the top 10 vacation towns in percent of vacation homes. There were several surprises. Which counties appreciated fastest? What is the warning in the data?
How was this study conducted?
The National Association of Realtors NAR identified a county as a vacation home county if the vacant housing for seasonal, recreational, or occasional use made up 20 percent or more of the county’s total housing stock. 6.6% of 3,141 counties throughout the United States were considered vacation home counties in 2017.
What is in the data?
Colorado, as most know, is home to numerous resort communities due to the abundance of outdoor recreation (skiing, hiking, biking, and Hunting/Fishing). This has made Colorado a desirable destination for second homeowners. From the data below Colorado has 5 of the top 10 resort markets based on percentage of second homes.
|Rank||City||% of vacation homes|
|3||Cap May, NJ||50.6%|
What is the surprise and warning in the data?
The headlines got a little more interesting as I dug a bit deeper into the data. There was one surprise and one warning that are notable.
|Top 25 vacation counties with highest price gain (2013-2018)|
|Top Home loan originations as a percent of sales (2013-2018)|
|Rank||City||% using financing|
Colorado performed well landing 5 of the top 10 resort markets with 8 markets in the top 25 regarding appreciation. I don’t see any big changes that would knock Colorado off the leaderboard anytime soon. The same resort communities above will continue to excel as there are no new ski mountains coming online and the success of each community is very difficult to replicate.
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Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in the Colorado Real Estate Journal, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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