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…
Do you know where I took this picture in Colorado? I wrote back in June about big changes coming to Colorado’s resort communities. What has happened since June? Were the predictions accurate? Where does ski real estate go from here? The great urban exodus is causing big changes in resort communities throughout Colorado. Which ski town increased 18%?
In economics, whenever there is distress in one part of the market, there are always winners and unfortunately losers. From the pandemic, there are three primary winners in ski real estate.
I was dead on with my predictions, single family homes have been flying off the shelves of ski towns with inventory dwindling and prices increasing.
Since June the real estate market in various resort communities has been busy. Although July data isn’t final yet, as of the writing of this article, the summer is primed to set real estate records with a buying frenzy remnant of 2007. I was recently speaking with a good friend I Breckenridge who got a call out of the blue from an east coast exec. He flew in on a Tuesday and made a 4 million cash offer the next day. Similar stories are happening throughout the resort communities.
In Steamboat from June 2019 to June 2020, the median sales price is up 18.3%(source Colorado Association of Realtors.) in Aspen during the first two weeks of July, 111 properties went under contract, compared to 46 the same period in 2019. These same trends are playing out throughout the high country as prices increase and inventory declines
Although I don’t think the current torrent pace of the market will continue indefinitely, inventory will remain tight and prices will continue to outpace the rest of the country. The three primary factors driving the market will continue as the pandemic drags on and families relocate to perceived safer locations. Markets like Steamboat, Vail, Telluride, Aspen, Breckenridge, and Crested Butte will do much better than most real estate throughout the country during this recession.
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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 Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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