POST DATE: Wednesday, June 9, 2010
1.) A recent article in THE WALL STREET JOURNAL seems to confirm what I've been commenting on here in the Vail Valley ... that high-end real estate sales seem to be picking up.
The Journal article quotes figures provided by CoreLogic, saying that "after a near-disastrous 2009, the luxury market appears to be making a comeback, driven by buyer confidence, improved financing conditions and more-realistic seller pricing." Nationwide sales of homes in the $2,000,000 - $5,000,000 range were up 32% in the first quarter of 2010 when compared to a year ago.
While an improvement in sales over 2009 year is certainly to be expected, the better news the WSJ reported was that in some areas of the country, 1st quarter sales of $2 million+ priced homes were actually on par with the levels of 2005 ... and 2005 was the peak year for existing-home sales volume nationwide.
NEW CONTRACTS WRITTEN in MAY ... throughout the VAIL VALLEY
POST DATE: Monday, June 7, 2010
Brokers throughout the Vail Valley wrote a bunch of business last month ... 73 transactions (including one home site in Eagle Ranch) for approximately $115,530,000.
Here's how this activity breaks down:
BY PRICE:
$0-$500,000: 25 contracts
$500,000 - $999,999: 20 contracts
$1,000,000 - $2,999,999: 20 contracts
$3,000,000 - $5,000,000: 1 contact
Over $5,000,000: 7 contracts
BY AREA:
Vail/Lionshead: 9 properties (including 3 Solaris/2 Arrabelle condos)
Bachelor Gulch: 1 property
Beaver Creek: 5 properties
Arrowhead: 5 properties
Cordillera/Colorow: 4 properties
Avon: 4 properties (including 1 Westin)
Eagle/Eagle Ranch: 13 properties
Eagle-Vail: 4 properties
East Vail: 4 properties
Edwards: 2 properties
Gypsum: 7 properties
Homestead: 2 properties
Lake Creek: 1 property
Minturn/Red Cliff: 1 property
Singletree: 3 properties
West Vail: 6 properties
Wildridge: 2 properties
Brokers throughout the Vail Valley wrote a bunch of business last month ... 73 transactions (including one home site in Eagle Ranch) for approximately $115,530,000.
Here's how this activity breaks down:
BY PRICE:
$0-$500,000: 25 contracts
$500,000 - $999,999: 20 contracts
$1,000,000 - $2,999,999: 20 contracts
$3,000,000 - $5,000,000: 1 contact
Over $5,000,000: 7 contracts
BY AREA:
Vail/Lionshead: 9 properties (including 3 Solaris/2 Arrabelle condos)
Bachelor Gulch: 1 property
Beaver Creek: 5 properties
Arrowhead: 5 properties
Cordillera/Colorow: 4 properties
Avon: 4 properties (including 1 Westin)
Eagle/Eagle Ranch: 13 properties
Eagle-Vail: 4 properties
East Vail: 4 properties
Edwards: 2 properties
Gypsum: 7 properties
Homestead: 2 properties
Lake Creek: 1 property
Minturn/Red Cliff: 1 property
Singletree: 3 properties
West Vail: 6 properties
Wildridge: 2 properties
GOOD NEWS x 3
POST DATE: Friday, June 4, 2010
1. May numbers are in for my firm, Slifer, Smith & Frampton Real Estate (SSF). Last month SSF brokers wrote new contracts for $66,650,000 worth of real estate. When you include transactions in which SSF brokers were involved on both the buying and selling sides the number climbs to more than $100 million.
The $66,650,000 number compares more than favorably with the value of contracts we wrote in May of last year, which totalled only $38,200,000.
2. Not to brag but our June numbers are off to a pretty good start ... yesterday I closed the sale of my single family home listing in Beaver Creek's exclusive Strawberry Park community, for more than $10,000,000 ... and SSF had both sides of that one.
3. Not totally real estate-related but great for business ... Vail-Beaver Creek have just won their bid to host the World Alpine Ski Championships in 2015, beating out two heavy-weights, Cortina, Italy and St. Moritz, Switzerland. This win brings the event back to the USA after seven straight championships in Europe. It sure didn't hurt to have Lindsey Vonn as a pitch-person!
1. May numbers are in for my firm, Slifer, Smith & Frampton Real Estate (SSF). Last month SSF brokers wrote new contracts for $66,650,000 worth of real estate. When you include transactions in which SSF brokers were involved on both the buying and selling sides the number climbs to more than $100 million.
The $66,650,000 number compares more than favorably with the value of contracts we wrote in May of last year, which totalled only $38,200,000.
2. Not to brag but our June numbers are off to a pretty good start ... yesterday I closed the sale of my single family home listing in Beaver Creek's exclusive Strawberry Park community, for more than $10,000,000 ... and SSF had both sides of that one.
3. Not totally real estate-related but great for business ... Vail-Beaver Creek have just won their bid to host the World Alpine Ski Championships in 2015, beating out two heavy-weights, Cortina, Italy and St. Moritz, Switzerland. This win brings the event back to the USA after seven straight championships in Europe. It sure didn't hurt to have Lindsey Vonn as a pitch-person!
ODDS and ENDS
POST DATE: Monday, May 31, 2010
HOMEOWNER TAX CREDIT:
Although the federal homeowner tax credit expired April 30th, its effects will continue to be felt for some time to come. Already, despite remarkably low interest rates, nationally mortgage applications for home purchases fell some 27% in the first half of May. This may be offset by the volume of refinancing applications which is expected to rise due to the attractiveness of the low rates ... which helps mortgage brokers more than real estate brokers and their sellers.
It will take time for the rush of tax-credit purchase transactions to actually close. Home sales statistics nationally should remain inflated into June by the last minute rush of contracts written pre-April 30th.
The good news is that the Vail Valley is not particularly a homeowner tax credit market, so the overall effects here should be minimal.
The other important difference betweeen us and major parts of the Country is that many states are seeing a significant upsurge in available inventory, in some cases a doubling of existing supply. We do not expect anything of the sort here. Of course we will see the usual seasonal increase that always occurs here, as owners list their homes in hopes of attracting buyers during our resort's busy summer season. Our inventory has held remarkably steady throughout the economic downturn of the last 18-21 months.
FINALLY FINISHING:
Lots of excitement in Vail and Lionshead. This summer will see the completion of three major buildings: Solaris, The Four Seasons, and The Ritz-Carlton Residences. After seven years of cranes and jackhammers, Vail and Lionshead will no longer be a construction zone. It will be a cohesive, world-class whole and will be greatly enhanced by the addition of these major assets to our community.
GO KELLY!:
Kelly Liken, chef/owner of the Kelly Liken Restaurant in Vail Village is scheduled to compete in the enormously popular TV series, "Top Chef" beginning June 16th on the BRAVO TV network. I have watched this program faithfully for the past 5 years ... it grabs me every time. Recently, Kelly Liken competed on that favorite of foodies, "Iron Chef America", losing to Iron Chef Jose Garces by only 5 points. I watched that one too ... it was riveting. And to think that these talents are available to us most any night of the week at her fabulous restaurant in the Gateway Building in Vail.
HOMEOWNER TAX CREDIT:
Although the federal homeowner tax credit expired April 30th, its effects will continue to be felt for some time to come. Already, despite remarkably low interest rates, nationally mortgage applications for home purchases fell some 27% in the first half of May. This may be offset by the volume of refinancing applications which is expected to rise due to the attractiveness of the low rates ... which helps mortgage brokers more than real estate brokers and their sellers.
It will take time for the rush of tax-credit purchase transactions to actually close. Home sales statistics nationally should remain inflated into June by the last minute rush of contracts written pre-April 30th.
The good news is that the Vail Valley is not particularly a homeowner tax credit market, so the overall effects here should be minimal.
The other important difference betweeen us and major parts of the Country is that many states are seeing a significant upsurge in available inventory, in some cases a doubling of existing supply. We do not expect anything of the sort here. Of course we will see the usual seasonal increase that always occurs here, as owners list their homes in hopes of attracting buyers during our resort's busy summer season. Our inventory has held remarkably steady throughout the economic downturn of the last 18-21 months.
FINALLY FINISHING:
Lots of excitement in Vail and Lionshead. This summer will see the completion of three major buildings: Solaris, The Four Seasons, and The Ritz-Carlton Residences. After seven years of cranes and jackhammers, Vail and Lionshead will no longer be a construction zone. It will be a cohesive, world-class whole and will be greatly enhanced by the addition of these major assets to our community.
GO KELLY!:
Kelly Liken, chef/owner of the Kelly Liken Restaurant in Vail Village is scheduled to compete in the enormously popular TV series, "Top Chef" beginning June 16th on the BRAVO TV network. I have watched this program faithfully for the past 5 years ... it grabs me every time. Recently, Kelly Liken competed on that favorite of foodies, "Iron Chef America", losing to Iron Chef Jose Garces by only 5 points. I watched that one too ... it was riveting. And to think that these talents are available to us most any night of the week at her fabulous restaurant in the Gateway Building in Vail.
HIGH-END SALES SPUR LOCAL MARKET
POST DATE: Friday, March 28, 2010
Although it is true that robust sales of the significantly discounted Developer condos at The Westin accounted in part for the strong start to this year's property sales in the Vail Valley, the high-end market also continues to move. In March there were 9 properties that each sold for over $5 million for a total of $57,669,800.
So far this year, 16 properties have sold for more than $4 million, totaling $94,475,000 … and properties over $2 million accounted for 63% of total volume. This is a noticeable change from the throes of the economic downturn when sales under $500,000 consistently accounted for more than 50% of our activity.
In another arena, I'm heartened to report that April produced some land transactions … 9 of them averaging $584,267. Land buyers have to feel some optimism about the future to be willing to pay for the "dirt", pay for the surveyors, architects, contractors. It may be that prices are so attractive that investors are snapping up home sites in order to "land bank" them until times get better, but at least it's an improvement over the dormant land market we've been seeing.
Although it is true that robust sales of the significantly discounted Developer condos at The Westin accounted in part for the strong start to this year's property sales in the Vail Valley, the high-end market also continues to move. In March there were 9 properties that each sold for over $5 million for a total of $57,669,800.
So far this year, 16 properties have sold for more than $4 million, totaling $94,475,000 … and properties over $2 million accounted for 63% of total volume. This is a noticeable change from the throes of the economic downturn when sales under $500,000 consistently accounted for more than 50% of our activity.
In another arena, I'm heartened to report that April produced some land transactions … 9 of them averaging $584,267. Land buyers have to feel some optimism about the future to be willing to pay for the "dirt", pay for the surveyors, architects, contractors. It may be that prices are so attractive that investors are snapping up home sites in order to "land bank" them until times get better, but at least it's an improvement over the dormant land market we've been seeing.
LOCAL SALES PERFORMANCE: JANUARY thru APRIL
POST DATE: Monday, May 24, 2010
Real estate activity in April continued at the same strong pace that characterized 2010's first Quarter here in the Vail Valley … more than doubling the $ volume of sales compared to April of last year.
In the first quarter, March was the month with the highest dollar volume … reporting $131 million in sales. It was also the highest volume of sales the area had seen in over a year.
April very nearly matched March's stellar performance by clocking sales of $130.6 million for the month, bringing total sales volume for the first 4 months of the year to $449 million. And April's numbers closely match those of April two years ago in 2008.
And it isn't just $ volume that's accounting for the good news. The all important # of transactions has been doubling as well. March saw 102 transactions and April 116 transactions, bringing the 4-month total for 2010 to 392 … double that of 2009.
Real estate activity in April continued at the same strong pace that characterized 2010's first Quarter here in the Vail Valley … more than doubling the $ volume of sales compared to April of last year.
In the first quarter, March was the month with the highest dollar volume … reporting $131 million in sales. It was also the highest volume of sales the area had seen in over a year.
April very nearly matched March's stellar performance by clocking sales of $130.6 million for the month, bringing total sales volume for the first 4 months of the year to $449 million. And April's numbers closely match those of April two years ago in 2008.
And it isn't just $ volume that's accounting for the good news. The all important # of transactions has been doubling as well. March saw 102 transactions and April 116 transactions, bringing the 4-month total for 2010 to 392 … double that of 2009.
INNOVATIONS from VAIL RESORT, INC. HELP WEATHER THE ECONOMIC STORM
POST DATE: Friday, May 21, 2010
It is Vail Resort, Inc.'s long-term commitment to a strategy of vertical integration --which it initiated in the mid-'90's and has consistently pursued since then-- that has earned it kudos from analysts as one of the best companies in the travel business and, more importantly, has enabled it to avoid the ravages of the global economic downturn.
Vail Resort, Inc. intends to deliver the total experience, providing a level of convenience through its vertical integration designed to attract and keep customers. How? ... in addition to its ski resorts, the Company owns or operates 3,900 hotel and condominium rooms, 140+ retail sporting goods and equipment rental stores, six golf courses, 90 restaurants and Colorado Mountain Express, a shuttle van service that picks you up at the airport in Denver and takes you to the mountains. Customers enjoy the one-call/one-click convenience and Vail Resort Inc. enjoys the multiple revenue streams.
Of course, the 800-lb. gorilla is not universally popular among local small retailers, but in a "Company town" like Vail, it's good to know the Company is healthy.
It is Vail Resort, Inc.'s long-term commitment to a strategy of vertical integration --which it initiated in the mid-'90's and has consistently pursued since then-- that has earned it kudos from analysts as one of the best companies in the travel business and, more importantly, has enabled it to avoid the ravages of the global economic downturn.
Vail Resort, Inc. intends to deliver the total experience, providing a level of convenience through its vertical integration designed to attract and keep customers. How? ... in addition to its ski resorts, the Company owns or operates 3,900 hotel and condominium rooms, 140+ retail sporting goods and equipment rental stores, six golf courses, 90 restaurants and Colorado Mountain Express, a shuttle van service that picks you up at the airport in Denver and takes you to the mountains. Customers enjoy the one-call/one-click convenience and Vail Resort Inc. enjoys the multiple revenue streams.
Of course, the 800-lb. gorilla is not universally popular among local small retailers, but in a "Company town" like Vail, it's good to know the Company is healthy.
COULD IT BE?
POST DATE: Monday, May 17, 2010
Not that the Vail Valley is a big foreclosure area ... thank you, God; thank you, God ... but it's just the littlest bit heartening to read that, nationally, home foreclosure filings dropped 2% in April from a year ago.
What's significant to me about this stat, provided by RealtyTrac in its most recent report, is that this is the FIRST ANNUAL DECREASE IN FORECLOSURES IN MORE THAN FIVE YEARS.
Not that the Vail Valley is a big foreclosure area ... thank you, God; thank you, God ... but it's just the littlest bit heartening to read that, nationally, home foreclosure filings dropped 2% in April from a year ago.
What's significant to me about this stat, provided by RealtyTrac in its most recent report, is that this is the FIRST ANNUAL DECREASE IN FORECLOSURES IN MORE THAN FIVE YEARS.
HOW WE COMPARE
POST DATE: Friday, May 14, 2010
I've received the 1st Quarter results from the Western Mountain Resort Association, a group which includes Vail, Steamboat, Telluride, Keystone, Breckenridge, Sun Valley (CA), Park City (UT) and Whistler in British Columbia.
At the end of the first quarter, the resorts of the Vail Valley reported 248 transactions totalling $299.3 million in volume. On an annualized basis, given our outstanding inventory of 2,182 listings, that's a turnover ratio -- at the present sales rate -- of a little over two years. That's pretty disappointing when compared to the 4-5 month ratio we had in the glory days of 2006/2007 ... BUT, look at it this way, we could be Sun Valley which has a turnover ratio of 4 years ... or Steamboat which sold 106 properties in the first quarter leaving an unsold inventory of 2,123 listings, and a 5-year turnover ratio.
Probably our most comparable competitor, for which figures are available, Park City Utah, took 800 brokers to sell 301 properties in the first quarter, leaving 2,700 listings left to go.
Here in Vail we'd like to be thundering along as in the good old days, but we realize it could be a lot worse and that makes us grateful.
I've received the 1st Quarter results from the Western Mountain Resort Association, a group which includes Vail, Steamboat, Telluride, Keystone, Breckenridge, Sun Valley (CA), Park City (UT) and Whistler in British Columbia.
At the end of the first quarter, the resorts of the Vail Valley reported 248 transactions totalling $299.3 million in volume. On an annualized basis, given our outstanding inventory of 2,182 listings, that's a turnover ratio -- at the present sales rate -- of a little over two years. That's pretty disappointing when compared to the 4-5 month ratio we had in the glory days of 2006/2007 ... BUT, look at it this way, we could be Sun Valley which has a turnover ratio of 4 years ... or Steamboat which sold 106 properties in the first quarter leaving an unsold inventory of 2,123 listings, and a 5-year turnover ratio.
Probably our most comparable competitor, for which figures are available, Park City Utah, took 800 brokers to sell 301 properties in the first quarter, leaving 2,700 listings left to go.
Here in Vail we'd like to be thundering along as in the good old days, but we realize it could be a lot worse and that makes us grateful.
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