Market Insights: Prices dropped 40%
Dropping the prices on 25 brand new condos in Breckenridge 40 percent is a big deal. Did you hear me? Please allow me to elaborate. This is huge, gigantic, enormous, massive for two reasons. It creates a chance for the right buyers to purchase top quality real estate at great prices. And it has the potential to impact sales prices for property all across Summit County.
On December 15, 2010, the developer of Water House on Main Street in Breckenridge announced “the Ultimate White Sale”. On that day they dropped the prices of the 25 condos in the complex that had not sold 40 percent. Within the short time since 14 condos sold and 6 more are under contract to be sold soon. The sale worked.
Right now there are five units (2 bedrooms, 3 bedrooms and a glorious penthouse unit) still on the market at 40 percent off. Based on the rapid pace of sales already I expect this handful of units will sell soon. This is a chance for the right buyers to get a genuine ‘steal’ on a condo in a superb location.
What happened? This developer followed the lead of others in major ski resorts all over the west. They decided what was in their best interest was to stop hoping for unrealistic high prices and drop their prices to meet the current market value of their project. I believe this action will have the same impact as it has had in other resorts which I wrote about in the market insights article published on November 27, that can be read at http://www.yourmountainbroker.com/Blog/Market-better-than-most.
To save you the time of reading that recent article here is the summary:
• I spoke to colleagues in Deer Valley, Lake Tahoe, Vail, Steamboat and Jackson Hole.
• Each of these markets had, in the past year, drops in prices on major condo developments from 15 percent to 50 percent plus from the original pricing.
• Every single one of these real estate professionals told me, “Price drops in major projects have pushed down prices across all properties in their markets.”
• I said that it was possible this could happen here in Summit County.
If we, the Summit County real estate market, follow the trends in the communities above we will see a dramatic downward pressure on properties prices. This is tough news, however my Mom and Dad taught me to tell only tell the truth and to be brutally honest. Here I am at 54 years old still doing what my parents taught me to do.
Daniel Webster Johnson is a broker associate at Resort Brokers Real Estate. He can be reached at (970) 393-3300 or daniel@YourMountainBroker.com.
*Data obtained from the Summit
Association of Realtors.
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