WASHINGTON (MarketWatch) – Sales of existing homes surged 7.8% in August to the best level in more than a year as low interest rates and a slowly improving jobs market help fuel a rebound in activity. The National Association of Realtors said sales rose to a seasonally adjusted annual rate of 4.82 million from July’s 4.47 million, which was better than the 4.6 million expected in a MarketWatch-compiled economist poll. The level was the highest since May 2010 and the percentage gain was strongest since Aug. 2011. The median existing home price gained 9.5% year-on-year to $187,400, which reflects both the change in the mix of homes but also price gains on similar property. Inventories rose 2.9% to 2.47 million units in August, representing 6.1 months of supply at current sales rate, the lowest since January. The percentage of distressed sales was 22%, the lowest since the NAR began tracking the data in Oct. 2008.
Archive for September, 2012
- Mark Harden New Media Editor- Denver Business Journal
Cordillera Golf Club LLC, an Eagle County golf and residential complex that filed for Chapter 11 bankruptcy protection in June, said late Wednesday that it had “completed successful mediation” in a legal battle with property owners and creditors.
Cordillera — which operates as the Club at Cordillera in Edwards, near Beaver Creek — also said that it has agreed to be sold by the end of the year. The settlement is subject to court approval, it said.
In a statement, Cordillera said it “has completed successful mediation with all major parties [in the dispute] including the Cordillera Property Owners Association (CPOA), the Cordillera Transition Committee (CTC) and the Official Creditors Committee (OCC).”
The mediation, it said, “has provided a framework for resolution of suits among membership and ownership over financial matters, dues structures, ownership rights and the future of the club facilities of Cordillera.”
Those facilities include three golf courses and a teaching course as well as an athletic club and three clubhouses with restaurants.
Cordillera has some 1,100 homeowners, several hundred of whom had joined in a class-action lawsuit against the club.
The dispute did not involve the adjacent Lodge and Spa at Cordillera, which is separately owned.
“I am happy that we were able to come to a resolution of disputes that have affected our homeowners, club members, the community and my family for more than two years,” club owner David Wilhelm said in the statement. “It’s time to move on in the most positive way.”
Under the settlement agreement, “the parties agreed that the club will be sold prior to year end 2012,” Cordillera’s statement said.
“It is expected that all cash bids for the operating assets for the club will be received by Dec. 3,” the statement added. “In the event of multiple bids, an auction will be held on Dec. 10 to select the highest and best bid. In the auction process, Cordillera will likely be sold as a single asset. The sale will close before Dec. 28.”
Cordillera in June filed for Chapter 11 protection after failing to reach “a mutually acceptable agreement with certain stakeholders in the community.”
The filing came in the wake of dueling lawsuits involving property owners and Wilhelm, with one issue being a decision not to open some of the club’s golf courses last year, according to Vail Daily coverage of the issue.
The Chapter 11 filing (download here) listed both assets and liabilities ranging from $10 million to $50 million.
Latest photo of the new Vail Village Gondola base station. It’s rapidly taking shape. I don’t think there is any doubt it will be ready for ski season. Gondola cars are being delivered. Should be a great addition to Vail.
By Steve Goldstein
• September 13, 2012 • 12:18pm
It’s more affordable to buy a home than to rent in the 100 largest metros in the nation. That’s the case if you plan to stay in the home for seven years, which is the average time Americans traditionally live in a home before moving.
The findings come from real estate data provider Trulia, which conducted a study of key market factors impacting the cost of homeownership. Based on asking prices and rents from the summer, the company claims that, on average, buying is 45% cheaper than renting those areas. That’s a savings of $771 a month.
Trulia Chief Economist Jeff Kolko cites the faster pace of rent hikes versus those of home prices.
“Asking home prices have started to rebound and have risen by 2.3% year-over-year in August (3.8% excluding foreclosures); however, rents have risen more (4.7%),” Kolko notes. “This means that prices are lower relative to rents than they were a year ago.”
“But more importantly, mortgage rates have fallen,” he adds. The 30-year fixed-rate mortgage sits at 3.55%, hovering only six basis points above the record low average hit in July.
To calculate whether renting or buying costs less, Trulia assumes people can get a low mortgage rate of 3.5%, itemize their federal tax deductions, are in the 25% tax bracket, and will stay in their home for seven years.
However, how much cheaper it is to buy a home than to rent depends on where you live.
Buying is 24% cheaper than renting in Honolulu, 28% cheaper in San Francisco, and 31% cheaper in New York, Trulia found. Homeownership is even more affordable in Detroit, where buying a home is 70% cheaper than renting, and 63% cheaper in Oklahoma City and Gary, Ind.
With a higher mortgage rate (4.5%), failing to itemize and a shorter time horizon (five years), Trulia says renting becomes cheaper than buying in New York, San Francisco, San Jose, Calif., and Honolulu. Buying remains cheaper than renting in the other 96 out of the 100 largest metros.
If buying is so inexpensive relative to renting, why aren’t more people doing it? Kolko responds that high unemployment is preventing people from saving for a down payment.
“And keep in mind, in the metros where the cost of buying is less than half of what it would cost to rent over the long term, it still takes years to save enough for a down payment,” he says. “It may be 56% cheaper to buy than to rent in Denver, for instance, but it takes more than eight years to save enough for a down payment there.”
Beaver Creek Resort and Mountain Living Magazine present the Beaver Creek Luxury Lifestyle Festival this weekend to celebrate the beautiful fall season.
Join us this weekend (September 14 and 15) for the second annual Beaver Creek Luxury Lifestyle Festival. The event, centered in the heart of Beaver Creek, represents all things luxury including a tour of some of the finest residences in the Resort available for sale, culinary demonstrations, a winter fashion show, and wine tastings gallery strolls. All this centered around some of the finest luxury automobiles today – not only to view but to also test drive. The car show and home tour ticket proceeds will benefit Roundup River Ranch and Habitat for Humanity Eagle and Lake Counties. Click here for event details.
We are proud to present three of our listings in the home tour. Beaver Creek Landing B302 is currently on the market for $1,275,000, Horizon Pass 208 is listed at $3,199,000, and Villa Montane R202 is being offered at $2,795,000. If you are at the festival, stop by and visit Prudential’s tent in the heart of the action on Saturday from 10:00am – 6:00pm to view many of the finest homes in our resort and get expert knowledge on Beaver Creek Real Estate conditions.
If you can’t make the event this weekend in Beaver Creek, there are a number of other events to celebrate the season. On Sunday Vail Mountain School, in conjunction with its 50th anniversary, hosts it 41st annual Home Tour in Vail. Throughout the weekend is Vail’s Oktoberfest in Vail Village and the final Vail Farmer’s Market of the summer season in Vail. Plenty of events to enjoy – of course simply stepping outside to view the fall colors is the easiest way to take in the season.