The Summit Boom, Robust Sales Buck National Trend
Colorado Summit Magazine, Summer/Fall 2007
By, Lillian Ross
Summit County’s real estate market ignores statewide, even national downward trend, exceeding all sales expectations.
The real estate agents in Summit County didn’t get the memo, the one that foretells of a market cool-off. On the contrary, this market is red hot.
“Our business is up 200 percent this year,” says Slifer, Smith and Frampton Summit County managing broker Eric Thompson. “And I don’t see a slowdown.”
Just why is this high country area bucking the trend? Thompson cites a combination of factors-the limited supply of land, for starters. With U.S. Forest Service regulations and limitations, available land for development is at a premium. The county is close to reaching build-out capacity; it’s estimated within ten years there won’t be any land on which to build.
Then, there’s value. “The exceptional value of an investment here is so much greater than in many other resort areas,” according to Thompson.
Reasons for such value are apparent to anyone who’s spent time here: Championship golf, world-class skiing and snowboarding, gourmet dining, year- round recreation and entertainment for the entire family, exceptional quality of life, and easy proximity to Denver and its airport.
Apparently, the buyers have not objected to the $940 per square foot average sales price of “beachfront” upscale condominiums on the Crystal Peak Lodge at the foot of Peak 7 in Breckenridge. Of the 46 ski-in/ski-out residences, 41 were sold, even before the building broke ground. Construction of the 1200-1500-square-foot condominiums is scheduled for completion by Christmas of 2008.
“The square foot price tag of the Crystal Peak property comes with a coveted secluded location, yards from a super chair up Peak 7, and access to the gondola station offering winter transport to and from downtown Breckenridge,” notes Thompson. This is the area’s newest development, and the county’s most expensive.
Yet, prices in other quality developments run a close second. On Shock Hill, down the road from the base of Peaks 7 and 8, and with a stop on the gondola route, Breckenridge Lands, Inc. sells lots for $200,000 to $250,000. But, one lot sold for $975,000. A six bedroom, five-fireplace, 5,817 square foot home here was advertised for $3,597,000.
According to Brooke Roberts Valance, sales and marketing director of Land Title Guarantee Co., many buyers are choosing to invest in real estate rather than the stock market. Numbers don’t lie. In 1988, the average price of new or resale residential housing in Summit County was a little more than $99,000. In 2006, the same average figure was over $457,000. Year-end totals in the company’s Real Estate Index tabulates $1,637,874,800 in sales for 2006, compared with $1,128,175,900 in 2004.
“The bullish real estate market, together with affordable mortgage rates, have prompted renters in the county to dip their toes into home ownership,” says Valance.
Who is committing this kind of money to the Summit County way of life? Seniors? Yuppies? Families? According to Breckenridge realtors, buyers come from every age demographic, and many already own property in this high country mecca.
Eddie O’Brien of Prudential O’Brien Real Estate in Dillon adds his own observation. When asked shy is Summit County so strong, O’Brien answered “One word: oil. Those in the energy fields, from Texas to Canada, are discovering the value of Summit County.”
Add to the fact that Summit County is comprised of more than just resorts. “It’s comprehensive, filling every resident’s needs,” O’Brien adds. “And, we welcome newcomers who enjoy being active in our service-oriented community.”
Design by IMC, Articles © Copyright 2007 by FirstBreckenridgeRealEstate.com
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