Why $2M properties are selling like crazy in Summit County
Yes “selling like crazy,” and to justify that statement, here is the data of sales over the exact same period of time for each of the most relevant years:
2005 – 12 $2mil+ properties sold
2006 – 16 $2mil+ properties sold
2007 – 28 $2mil+ properties sold
2008 – 27 $2mil+ properties sold
2009 – 23 $2mil+ properties sold
2010 – 22 $2mil+ properties sold
Now let’s put the numbers above into context. The market here peaked in October 2008 when the failure of Lehman Brothers Bank was announced. Since then, two things have happened. Prices have dropped and the amount of transactions have dropped off, way off. With this in mind it makes sense that ’07 and ’08 were the years with the highest number of transactions.
What is happening? When you work with these buyers and sellers on a daily basis the answers are obvious. First of all almost every single one of these buyers are paying cash, no need for a loan. Secondly in this price range the buyers are super-duper bargain hunters. A home that was on the market last year at $3 million that sells for $2 million today (real life example), well that is a darn, darn good value. And finally, the über-wealthy, who are buying these properties are confident in the future of resort real estate. The have the financial resources to live by the age old adage “buy low and sell high.”
You might think these numbers are elevated due to the five $2+mil condos sold in 2010 at One Ski Hill Place. You are right: However, in 2008 the numbers were boosted by four sales in this category when Crystal Peak Lodge closed. So those years balance each other out.
And what sort of properties are selling in this price range? Take a look at 301 N Main St, Breckenridge on the market at $3.25M. In this case there are three key words: location, location, location. Walk to everything, enjoy the Blue River flowing past the back door and the gondola just a few paces away. Many say this is one of, if not, the best locations for a single family home in Breckenridge.
Daniel Webster Johnson is a Broker Associate at Resort Brokers Real Estate. He can be reached at (970) 393-3300 and/or daniel@YourMountainBroker.com *Data obtained from the Summit Association of Realtors.
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