Archive for April, 2011
Click on the link below to view the latest Minturn and Avon Community Update from Prudential Colorado Properties. The update includes listings and sales in Minturn and Avon as well as some interesting market statistics.
Click on the link below to check out the latest Beaver Creek Resort Update from Prudential Colorado Properties. The update includes Beaver Creek Listings and Sales in addition to some interesting market stats.
Recently I’ve claimed there is some light at the end of the tunnel in the local housing market. It might be helpful to take a look at long-term trends in the Valley real estate market. Are we really climbing out of the huge hole we dropped into over the past four years? The graph below compares the annual number of real estate transactions versus population growth in Eagle County from 1990. The transaction numbers are from Eagle County and the population numbers are from the US Census.
First look at the red line which represents the number of transactions in Eagle County since 1990. Even though we have seen a nice reversal of the downward trend from 2009 to 2010, we are still well below the activity level we were seeing 20 years ago. We had nearly 2,000 transactions in 1990 and only 1,250 in 2010. It looks even worse when you compare transactions versus the population growth in the county. According to the US Census, our county population has over doubled from 22,297 in 1990 to 53,372 in 2010.
Should these two sets of data trend together? There does seem to be a correlation in the trends from 1990 to 2005 then they diverge significantly. I think one can make a case that in general people would rather own than rent. As the population grows, more people are buying and selling real estate so transactions should also grow.
Can we conclude anything from this comparison? I believe we still have a long way to go before we are back to a more normal real estate market in the county. I would hope that we would see a continuing recovering in transactions but at this point, transactions in 2011 are not up much from 2010. On the positive side, I believe there is significant pent-up demand for housing in the County. But until our unemployment rate drops further, financing becomes more available, and there is more clarity in the national economy, people will continue to be cautious when making a real estate purchase. I don’t see the end to our current buyer’s market for some time, possibly years.
Are there signs of life in the Wildridge real estate market? Take a look at my latest Wildridge Market Update and decide for yourself. I have some sellers who are hoping that the market is coming back to life.
If you were ever thinking of buying real estate in Beaver Creek, now is the time. You know I don’t operate from gut feel (most of the time). The numbers say we bottomed out over a year ago. Prices have stabilized and activity is up. The deals probably won’t get any better. Click on the link to take a look at the report.
The Beaver Creek 2010-2010 ski season ended last Sunday. I thoroughly enjoyed the season. I was able to get on the mountain over 70 days and, according to Epicmix, skied over 1,000,000 vertical feet. I taught 30 days and skied with some wonderful guests. I met one family from Puerto Rico who told me I had “made their fantasies come true” when we said our goodbyes. It is experiences like that one that keep me coming back to ski teaching.
So what were some of my observations?
- Guests returning to the slopes. I don’t know what the final numbers were but we had a lot of guests on the mountain.
- People seemed to be more optimistic about the future.
- My skiing improved significantly even though I continue to get older.
- Snow. We had tons of the white stuff. A great snow season.
- New ski school uniforms for next season.
- I skied a season relatively injury free.
- Prices continue to increase. I started to get some pushback on pricing levels, particularly the $710 we charge for a full day private lesson.
- Vail Resorts has an incredible staff of dedicated employees.
- Vail Resorts does a great job marketing the resort.
- Vail Resorts needs to do a better job working with their employees. I believe the key to great customer service starts with talented and engaged employees who are treated with dignity, trust, and respect.
- People are skiing and riding faster than ever.
- Skiing with and coaching the men of the Bachelor Gulch Club was a real treat.
- My 30 days teaching skiing were a delight.
- Vail Resorts can do a better job creating a world-class guest experience and it starts with the unfriendly ticketing system.
- Skiing is still a wonderful family sport.
- Advances in equipment are changing the sport for the better.
- I still have a passion for skiing.
Enough for now. I am looking forward to some warm days but before we know it, it will be ski season again.
By Jeffry Bartash
WASHINGTON (MarketWatch) – The start of construction on new U.S. homes rose 7.2% in March to an annual rate of 549,000, while permits rose 11.2%, the government reported Tuesday. Housing starts in February were revised up to 512,000 from an original reading of 479,000, according to Commerce Department data. Economists surveyed by MarketWatch had expected housing starts in March to climb to an annual rate of 520,000 on a seasonally adjusted basis. Permits for new construction, viewed as a gauge of future demand, increased to an annual rate of 594,000 from February’s upwardly revised level of 534,000. Permits for single-family homes, which account for three-quarters of the housing market, rose 5.7% to an annual rate of 405,000 last month.
TMN Note – I don’t believe the Vail Valley has participated in this increase in housing starts but it is good news for the economy in general. As we continue to get good economic news, our reluctant buyers may start to commit to purchases in the Valley.