Although American resort areas are also feeling the effects of the bursting housing bubble and precarious economy, Breckenridge CO real estate is yet perched for a bright future. Dollar sales volume continues to be high, albeit fewer Summit County properties have been selling than during the 2003-2005 bubble. The interesting thing for Breckenridge CO homes is that prices keep going up.
Comparing September and October 2005 with the same months in 2008, we find the following figures for all of Summit County Colorado real estate sales:
Month Sales Total Volume Average Sale price
September 2005 445 $161,353,500 $362,592
October 2005 389 $152,693,400 $392,528
September 2008 201 $127,090,100 $643,131
October 2008 176 $118,230,800 $676,061
Prices vary greatly by area of Summit County. The average Year-to-Date through October for our communities looks like this: Breckenridge $758,220, Silverthorne $655,858, Frisco $496,053, Keystone $494,589, Dillon $488,509, and Wildernest $342,712.
According to PortReal Residential Market Update 4th Quarter 2008, “Resort-based metropolitan areas have suffered significantly worse than more diversified markets.” On the other hand, our Rocky Mountain resort areas are exceptions to that statement, which is based on averages from around the nation that include Florida and California where real estate prices have fallen dramatically. The truth is that our resort and luxury real estate has outperformed most other markets, including the median-priced home market and investment-grade market. Our resorts continue to see land and real estate appreciation.
There is high demand for resort real estate close to the Front Range metropolitan areas. As population continues to increase in those areas, more people will be looking to our recreational playground for vacation properties, second homes, and retirement homes.
And the opportunities for investment in multi-family and single-family homes in Summit County will allow owners to take advantage of another point that PortReal makes: “Net rental income matches or exceeds the costs of property ownership in 88 percent of US markets.” People who are not able to pass the credit scrutiny will still be renting both primary homes and vacation properties in the resort areas.
As people tighten their belts, many continue careful real estate investing. It’s a way of life and livelihood. In growing areas like ours, over time real estate investments outperform the money markets. For information about resort real estate to enjoy for years to come, call Rick Allemang of RE/MAX Properties of the Summit at 970-547-1002.
