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ASPEN AREA REAL ESTATE
These market reports are brought to you as
a special courtesy from Peter Kelley
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June 2008 Market Report
There were a total of 77 transactions for June, which represents only an 8% decrease from last June (this represents the lowest month over month decline year to date)
Last April we reported the local real estate market much brighter than the national market. Stating the following: “A survey by The National Association of Realtors shows strength for vacation home market. As mentioned in last months article Baby Boomers are middle aged and are propelling the second home market. The survey showed “Boomers believe in diversifying their assets, and most second-home owners see their purchase as being a better investment than stocks. A surprising majority of survey respondents hold multiple properties, and they are interested in purchasing additional homes.” “About 60% of respondents own two or more homes in addition to their primary residence.”“
Some other interesting results from the survey are: half of vacation homes are located in resort or recreational areas, and since 2003, two-thirds purchased through a real estate agent. Eighteen percent purchased directly from owners, and fourteen percent bought directly from builders.”
Today the market is much the same only we are way ahead of where we were last year setting ourselves even further apart from the national trend.
Pitkin County begins the 2nd quarter 2007 just shy of where we were last year. Dollar volume sees a slight decline, 4% behind April of last year, reporting $199.6 million. However, the number of transactions increased slightly 3.5% with 148 compared to last April which reported 143. Interval transactions of 28 represented a 49 % decrease over last year.
Garfield County real estate is continuing to defy the trends of the rest of the country, reporting a dollar volume increase over last April of 47%. Total dollar volume was at $98.4 million compared to $66.9 million in 2006. Garfield County also showed an increase in number of transactions with a total of 244 over last years 211 a 15.6% increase.
Comparing year-to-date numbers to the previous year we are showing a 35.4% increase in volume, $337 million to $249 million as of April 2006. As well we are at an 18.7% year-to-date increase in transactions with 856 compared to 721 as of this same time last year.
Report from Land Title Guarantee Company
According to the Wall Street Journal, and data compiled by ZipRealty Inc., the number of homes for sale in 18 of our major metropolitan areas increased 6.5% in March over the previous month this year. The biggest inventory increases were in the metro areas of Los Angeles (12.8%), San Francisco (12.2%) and Washington, D.C. (9.4%). This 6.5% increase is a much larger jump than the modest average increase of 1.7% we have seen over the last 22 years, according to Credit Suisse Group.
Are homeowners confident that they can sell their homes and are we starting to see the national market turn around? Don’t get too excited. Typically the supply starts to increase slightly in March, the start of spring, when many families seek new homes so they can move during summer vacations. However, it is likely that this early rise is stemming from the realization that it will take much longer to find buyers than it has in the past and homeowners are selling before prices deteriorate.
This rise in inventory has caused prices to level out or even drop slightly which will likely cause the national median existing home price to drop slightly to a predicted $220,300 in 2007. Locally it is a whole different story, inventory is certainly not increasing nor are prices dropping. According to the local MLS the upper Roaring Fork Valley (Aspen to Basalt) has a total of 662 residential units listed as available, 309 of which are listed under $1 million and only 10 of these are single family units.
Down Valley the story is much the same. From Carbondale to Rifle there are only a total of 286 residential units listed available. Only half of which are under ½ million dollars.
Pitkin County, Colorado (including Aspen)
Pitkin County continues 2007 on an upward swing. Dollar volume sees a double digit increase again this month, 36.5%, over March last year, reporting $314 million. However, the number of transactions declined again 37% with 101 compared to last February which reported 162. Interval transactions of 25 represented a 60% decrease over last year.
Garfield County again followed in Pitkin’s footsteps reporting a dollar volume increase over last March of 6%. Total dollar volume was at $93.1 million compared to $87.8 million in 2006. Garfield County unlike Pitkin did show an increase in number of transactions, although slight, with a total of 237 over last years 227.
March should continue the record breaking with the closing and recording of Snowmass Base Village -- we are almost guaranteed dollar volume of more than 230 million for the month, another record. This valley is different.
Pitkin County (Aspen) continues 2007 on an upward swing. Dollar volume hits a double digit increase, 59%, over February last year, reporting $192.6 million. However, the number of transactions declined for the second month in a row by 20% with 91 compared to last February which reported 115. Interval transactions of 23 represented a 62% decrease over last year.
Garfield County (Carbondale, Basalt) again followed in Pitkin’s footsteps reporting a dollar volume increase over last February of 30.3%. Total dollar volume was at $53.8 million compared to $41 million in 2006. Garfield County unlike Pitkin did show an increase in number of transactions as well with a total of 138 over last years 125.
Report from Land Title Guarantee Company