ASPEN AREA REAL ESTATE
MARKET ACTIVITY REPORT
As of October 27, 2003

The 2001 and 2002 yearly totals, and 2003 year-to-date sales figures for Pitkin County, which contains only 18% private land, (the rest being public land such as National Forest) are as follows:

2001 $ 992,667,000

2002 $ 1,057,722,210

2003 (Thru 10/27/03) $ 923,350,200

(Note: Likely, total 2003 county-wide sales will meet or surpass the 2002 totals. Data Source: Pitkin County Clerk and Recorder.)

Interpretation: The number of homes available “For Sale” has decreased slightly from 2002 to 2003, along with the average number of days on the market; which is a measure of how long it takes to sell a home.

However, the average price of an Aspen home sale has risen considerably in 2003, which is reflective of what often happens in any contraction of the market here or of the national economy. There is a “flight to quality.” It seems the high end of the market always holds up best, and in this case even advances, if we look at the “average sale” amount.

Fractional interest sales have been popular for the following reasons. They allow an owner use of the property for the time they would normally have been in Aspen (4 to 6 weeks) for a “fraction” of the carrying costs for the entire property, on an annual basis.

All the Aspen area fractional “clubs” have been built within the last five years, thus represent the latest design and amenities with upgraded finishes, appliances, and the like. The amenities vary from slopeside skiing to championship golf, and most of these units, if sold 100% fee would command approximately $2.5M for this type three bedroom/three bath condominium apartment, on the open market.

Thus, for between $200,000 and $600,000 an individual can get the use they want, in a relatively brand new three bedroom unit, with many amenities not found in more dated, 100% fee interest condominiums, perhaps not as well located as well, selling at much higher prices.

Interpretation: Total number of fractionals sold Y-T-D 2003 is up considerably. Prices have been somewhat soft, as developer units are still available and are competing with re-sales. However, developer units are nearly sold out in all cases, so look for this situation to change.

Bottom Line: The train is leaving the station! As with the rest of the real estate market here in the old mining town, if you are considering such a purchase, now is the time to buy Aspen.

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