Market Insights: Flagship condo prices plunge nearly 20 percent in Breckenridge
I am recognized for being brutally honest.Real estate prices throughout Summit County have been stable (more or less) throughout 2012, which has made the real estate community very happy. Buyers, sellers and Realtors have been pleased with this stability. However, on Dec. 17, we were all blindsided when our 300-pound gorilla, Vail Resorts, dropped prices from 16.72 to 18.68 percent on condos at One Ski Hill Place.These price drops are a major shift for Vail Resorts in Summit County. Up until 11 days ago, our largest developer had led us to believe, based on its past actions, that it would not drop prices in its flagship complex at the base of Peak 8 in Breckenridge. And based on information provided to Realtors, the new pricing has had the desired effect, with two condominiums going under contract quickly after the announcement (a one-bed, two-bath at $725,000 and a two-bed, two-bath at $1,315,000).
How this impacts the marketplace depends on your perspective. Let’s take a look:Owners – those who already bought in the complex can’t be too happy as these price drops undoubtedly impact the resale value of their properties.Sellers – those trying to sell property that directly competes with One Ski Hill Place, for example in Crystal Peak Lodge at the base of Peak 7, can expect this to directly affect their property values.Buyers before Dec. 17 – imagine how you would feel if you had just purchased a property in another complex built by Vail Resorts, such as Mountain Thunder Lodge & Townhomes. You would probably not be very pleased.Current buyers – everybody smiles when they get a deal.Our 300 pound gorilla – two sales within a week, I am guessing makes them happy.The marketplace – over the years I have learned the real estate marketplace in Summit County does not like instability. After a year of stable prices, these price drops, so late in 2012, has people wondering what will happen in 2013.
Property selling is great news. If the strategy works for Vail Resorts, and they sell all of the remaining units they own in One Ski Hill Place, that is extremely positive for the Summit County marketplace overall. Of course, this really is great for buyers who want to be in a prime location in Breckenridge.Make it a great New Year’s Eve. Love life, DWJ.For more information contact Daniel Webster Johnson at (970) 393-3300 or drop him a line at Daniel@YourMountainBroker.com. He is a very active, full-time Realtor in Breckenridge, who has earned the national Quality Service Certified Platinum award, recognition of 100 percent client satisfaction. He is one of the team at Resort Brokers Real Estate located at 100 S Main St, Breckenridge.
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