The $1 million dollar question: Is it time to buy real estate in Vail yet?
March 12, 2009 —
The answer is yes, but very selectively, and it is getting ever harder to sniff out a good deal. Homeowners with $500,000 properties and those with $5 million homes are riddled with debt problems and loss of income. The trick is figuring out which ones and who is really ready to make a deal.
According to Barron’s (11/24/08) the price of luxury homes (greater than $5 million) is down 20 percent since peaking in 2007 and is expected to drop another 10-15 percent before bottoming out in 2010.
Without further belaboring the dismal economic news and statistics from the last few months or so, we are nearing the worst recession since the Great Depression.
In 2008 the S&P 500 returned a distressing negative 37 percent, wiping out trillions of dollars of paper wealth (which seems to equal real wealth in the minds of many.)
Our resort valley, which has been so immune to the pressures belying the rest of the country or world has finally succumbed to outside influences. Short sales and foreclosures are rising at an alarming pace, and we have even seen absolute auctions taking place in Beaver Creek and Arrowhead.
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