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Headline RSS FeedDespite rising inventory and still dropping prices, now is the time to buy Vail Valley real estate
June 17, 2009 —
The mantra for most folks I know is “back to basics” in these uncertain financial times. I liken good, sound financial planning to food and your waistline.
That $100,000 line of credit on your home may taste good right out of the bank, but eventually it will catch up with you and begin to look unattractive and possibly become downright harmful to your health.
It is estimated that 67 percent of adults in the United States own a home and two-thirds of those homeowners have mortgages. One in eight homeowners is late on house payments or in foreclosure (12 percent).
What about the rest of us? In Eagle County, there are 72 properties (excluding the ubiquitous timeshares) that are in foreclosure (NED filed). This is up about 200 percent from this time last year.
Eagle County is not immune to the woes of the national economy. About 45 percent of the homes in Eagle County are second homes or vacation homes. Sales of vacation homes fell 31 percent in the U.S. in 2008, while primary home sales fell 13 percent. The median price of vacation homes fell 23 percent in 2008, and 23 percent of vacation home purchases are in resort areas.
These statistics make it easier to quantify the drop in our local real estate market. The biggest losers have been the very expensive luxury homes. There are currently 132 active listings priced over $5 million.
I further researched the 34 most expensive listings in the valley that are priced between $10 million and $21 million and 34 percent have had price reductions. The average number of days on the market is 462. In the last 90 days, there have been six sales in this high-end luxury market.
That puts the current supply at a staggering 5.5 years. Simply put, the number of buyers who wish to and can afford to spend this kind of money has been greatly reduced, and funding for these types of homes has also been an issue with rapidly declining prices and wary lenders.
Now is an exceptional time to purchase a multi-million dollar property if you are one of the few who can afford it. There are even foreclosure opportunities in luxury land in Eagle County.
In reviewing the year-to-date statistics available through April 2009, 64 percent of all closings have been for properties priced less than $1 million, and 79 percent of all closed residential
transactions were priced at less than $2 million.
The writing is on the wall again. The most active part of the market remains in the pricing stratosphere of the “normal folks.” I would expect to see the recovery in real estate begin from the bottom up, meaning the inventory at the top should remain heavy for a long time to come.
Prices are continuing to go down in Eagle County. The further from Vail, the more the price is dropping. Part of the reason for the continuous decline is still partly due to unreasonable or uninformed sellers who are not pricing ahead of the curve but are chasing the market down with price drops.
While the buying activity is certainly picking up, there is just more inventory. Remember the law of supply and demand? In my last blog, I mentioned the probability of rising inventory entering the summer months.
There are currently 1,667 residential listings in Eagle County compared to 1,454 in the first quarter of 2009, an increase of 15 percent. As inventory continues to rise into the early summer months, buyers will continue to enjoy a market in which sellers are eager to negotiate.
If I were looking to purchase a home, I would definitely be looking now. Why, you may ask, if I am predicting a continued decline in price? Because I believe that interest rates are headed north and soon.
A 1-percent increase in interest rates is roughly equivalent to 5 percent of the purchase price of a $500,000 home. Pick your poison, timing the real estate market or timing the interest rates of a country in the midst of unprecedented
borrowing.
Real estate prices have already plunged an estimated 20 percent or more in Eagle County. We are seeing sales prices reminiscent of five years ago.
If you are qualified and know what you want, it is time to be ready to pull the trigger when the right property comes on the market. You may not hit the exact bottom of the market, but you are buying in a time of historical housing affordability and
somewhere near the bottom.
There is also the issue of the available tax credit which will save you another $8,000! Ready, set and go.
Oh yeah — June 18, 2009
Um, couldn't ANY market ALWAYS be defined as "somewhere near the bottom"? Call within the next 10 minutes, and we'll include this free gift! Operators are standing by, but hurry, because this offer won't last!
stonecreekfloodplain.gwsamd.com
Eagle Vail real estate: floodplain information
June 8, 2009 —
Recently, about 350 homeowners in Eagle Vail received a somewhat confusing notice about the new floodplain mapping project. Most of the affected residences lie in what is being referred to as "shaded zone X." This type of an area is one that has been identified as having an increased risk of flooding. In this case, the projected flooding is 1' or less.
These zones do not require any additional homeowner insurance or that you even contact your insurance company. This map is preliminary until its acceptance by FEMA, which will likely to occur in the next 90 days.
For more information, please come to the community meeting on June 15, 2009 from 6 p.m. to 8 p.m. at the Eagle Vail Pavilion and visit http://stonecreekfloodplain.gwsamd.com/
Sondra Slappey is a real estate broker who writes about real estate in the Vail Valley for realvail.com. She can be reached at www.investinvail.com.
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Vail Valley water rights can bolster property value
June 1, 2009 —
"Water, Colorado's 21st Century Gold" ... that was the name of a class I took last year which clearly spelled out why 21 different states are fighting over water which originates in Colorado, a head water state.
All of the water that will ever be found on our planet Earth is already here, it just changes shape and location, which is why I feel compelled to share with you the incredible opportunity that awaits in the following listing … and it carries water rights appropriated in 1918,1884 and 1903 and adjudicated in 1936, 1901 and 1919.
If you want 35 acres suitable for horses, cattle or organic farming, this is your chance. The owner has also agreed to finance up to 100 percent of the purchase price for qualified buyers.
Here are the details:
Thirty-five acres in the exclusive, gated community of Sorrell Hills just 5 minutes from Eagle, Colorado. Flat parcel with spectacular views to the New York Mountains and plenty of water. Ninety-eight percent fenced, and a well in place in addition to electrical, phone and cable services.
Please visit www.investinvail.com or call me at 970-376-8000 to learn more about this property.
1 Comment on "Vail Valley water rights can bolster property value"
rvmont — June 2, 2009
I clicked on this article expecting to find a real story. Water is such a very hot topic. Headline writer gets cudos, unfortunately the article was more of an advertisement instead of what it could have been.
Submit and read more comments on "Vail Valley water rights can bolster property value" now!
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Some residents upset over Vail's real estate tax valuation notices
May 12, 2009 —
Tax valuation notices were mailed to all Eagle County property owners recently and many property owners were not happy.
You may be surprised at the increase in your assessed value for tax purposes. Remember that the new value is based on the value of your home between January 2007 and June 2008 (before the big financial melt down and ensuing real estate crash).
Now is a great time to call your realtor. A real estate professional can look up comparable sales for you and give you some ammunition for an appeal or let you know if the new value is reasonable.
You have until June 1st to appeal the valuation, so pick up the phone and try to save your self some money! More information available at the county assessor's website at: http://www.eaglecounty.us/uploadedFiles/Assessor/News/News_Items/Valuation%20Notices%2004%2020.pdf
Sondra Slappey is a local realtor who writes about Real Estate for realvail.com. Visit her website at www.investinvail.com
1 Comment on "Some residents upset over Vail's real estate tax valuation notices"
tiasmith — June 26, 2009
I like the above it is good from my side and the things which have been mentioned are perfect and not require any further addition. Tia smith estate planning
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