In my blog last week Vail loses major lawsuit what does this mean for real estate, I asked the question based on the new lawsuits and huge costs to ski resort operators where should you buy Colorado ski real estate? I was a bit surprised by the results with respondents almost evenly split on where to buy real estate and what to avoid.
What was in the survey data on investing in ski real estate?
42% felt that you should focus your ski real estate buying in a Vail/Alterra owned resort like Vail, Breckenridge, Beaver Creek, Steamboat, etc… On the flip side 38% felt that ski real estate prices have run their course and to sit tight for now on a real estate purchase in a Colorado ski town. I was actually pretty surprised that there was this much caution in ski real estate with many thinking prices will decline further. On the flip side about 20% recommended avoiding any ski real estate associated with Vail or Alterra.
Top Comments on where you should or should not buy ski real estate
Second homes and luxury real estate investments are set to decline with an “artificial” influx of second home buyers entering the game post COVID; originating from purchases when interest rates were at record lows and a general stir crazy-ness due to Covid lock downs. Short term rental costs and policies are restricting economic incentives as well
Publicly traded company with access to capital that will continue to grow and support the towns
I agree that ski area real estate will be the best investment, however a city/town not totally dependent upon the resort will be a more solid investment and will have less ebb and flow with the ski industry.
Summary
The results from the last survey were surprising with 38% thinking that ski real estate prices have a bit further to fall. Long and short remember real estate is hyper local so Steamboat is radically different than Breckenridge so make sure that you have the local expertise if you are going to jump into this market. There are opportunities now, but beware there are also pitfalls if you don’t know each ski market intimately. Thank you everyone who participated in the survey, your insights are amazing
