What does 2009 mean for Real Estate...?

For 2009 Sellers…it means it is time for a reality check.

This New Year is a time to look in the mirror and ask yourself, “Am I really a 2009 Seller”? Today’s reality is that inventory is building at an alarming rate and property values have dramatically changed, following the trends of the financial portfolios and stock prices. The 2009 Seller has to let go of the gravy train of the past six years and get realistic with pricing. A 2009 Seller must realize the futility of stubbornly following the dreams of profits on paper, an attitude akin to what has lead to the woes of today’s financial market meltdown. Is the 2009 Seller well served by throwing out an unreasonable price just in case that “one person comes along”? As a 2009 Seller, what do you really think a 2009 Buyer will think about a headline on an ad that reads:

Was $5 million, then $4.9 million, then 4.6 million, then 4.2 million, then 3.9 million, now 3 million. Motivated Seller!!!

As opposed to “A solid value at $2.8 million”

The 2009 Seller realizes that taking a profit is how to gain wealth, even though it may not be as much profit as you thought, moving on to the next deal as a 2009 Buyer will position you for more real estate profits in the future. The 2009 Seller must recognize that coming to terms with breaking even or even taking a loss might be in your best interest unless you are prepared to hold on to your property for a long time.

The 2009 Seller will make a deal if they look at the expanding inventory of unsold property and make an honest decision as to where their property stands vs. properties recently sold and listing prices for comparable properties. Positioning your property at a price that is better that the comparables will get you the showings and put you in the best position to make a deal. A successful sale will lead to another deal and the market will start to move. The 2009 Seller will then be in a position for future profits as a 2009 Buyer, leading the market. The other Sellers will continue to spin their wheels, following the market.

Are you a 2009 Seller?

- Tom Kilby, Associate Broker

Rentals Look Stronger in February & March

The rental market in both Aspen and Snowmass has been affected by the economy. This comes as no surprise. It is interesting, however, that the later in the winter the stronger the rentals look. Christmas is well off last year, but February and March, while down, are showing signs of improving. Let's hope the improvement continues!

- Tom Leddy, Associate Broker

The Greening of Aspen, Part II & III

Part II:
Over 75% of the power provided by Aspen Electric is renewable energy; generated by solar panels, wind power and hydroelectric systems on local rivers. Aspen Electric also has a new tiered-rate system. The top 7% of electric users will pay $0.23/kWh compared to $0.07/kWh for customers in the lowest tier. This helps to encourage the largest users to reduce their electric expenditure.

Part III:
The City of Aspen has enacted a recycling ordinance that requires waste haulers to include recycling in the cost of trash pick-up, ensuring that all citizens and businesses have recycling pick-up available. The city’s building department has also agreed to the 2030 Challenge, which is a program designed to reduce the impact of new buildings (http://www.usgbc.org/). Unlike the voluntary LEED standard, the 2030 Challenge will be required.

- Lynne Cantrell, Associate Broker

Wall Street or Real Estate?

With investments in stocks and bonds yielding negative returns, commodity prices dropping and construction costs becoming more competitive, is it time to build? Building costs have ranged between $500 to $200 a square foot for labor and material depending on the quality of construction and the site location. If these costs drop 15% to 30%, say an average of 22%, a 5750 sq ft house which would have cost $2,300,000 to build at $400 per sq ft now costs $512,240 less. If you have the liquidity it may be time to make an offer on the large supply of available lots and take advantage of these building savings.

- Dale Potvin, Managing Broker

Financial Down-Turn Hurting the Down Valley Market

While November was a relatively poor sales month throughout the market, Aspen at least did ok, while the Roaring Fork valley barely had any activity. Aspen was down 15% from last year, at 42 million and has been maintaining about that level for the past several months. Snowmass was only down 5% from last year, at 9 million, but last year was also very low. The average for the last 4 years in November in Snowmass is 24 million. The Roaring Fork valley had the 2nd lowest month in the last 5 years at a paltry 5 million. Clearly, the financial down-turn is having the greatest impact on the down-valley market.

Tom Leddy, Associate Broker

Feel Like Some Holiday Music?

If you happen to be out and about on Sunday morning, December 21, there is a very nice Christmas concert at the Aspen Chapel. The Chapel Choir, led by Susan Nicholson, will sing a variety of Christmas pieces, with various local instrumentalists accompanying them. I will be singing in the choir as well as playing a piece on the Renaissance lute. Hope to see you there (it starts at 9:30am).

Tom Leddy, Associate Broker

The "Greening" of Aspen, Part I

The City of Aspen is an environmental pioneer on numerous fronts. The city developed the Canary Initiative (http://canaryinitiative.com/), which is responsible for calculating Aspen’s CO2 emissions and finding ways to reduce the carbon footprint of Aspen. Aspen is proud to offer the first municipal carbon offset program in the United States via the Canary Tag program (http://www.canarytags.com/). The city urges citizens, visitors and businesses to do everything possible to reduce their carbon footprint, and to consider purchasing Canary Tags to offset the remainder. Ninety cents of every dollar donated to Canary Tags goes to support a renewable energy project within 500 miles of Aspen. The Canary Initiative also partners with the Environmental Health Department to run the ZGreen program. This program helps businesses, events and citizens be “greener” and rewards them for their efforts. There are currently 12 ZGreen certified businesses in Aspen. As of January 2009, all events in the City of Aspen will be required to meet ZGreen standards in order to obtain a permit for their event. All events must make an effort towards reducing their energy, water usage, trash generation and air pollution. Citizens are encouraged to visit http://www.aspenzgreen.com/ and commit to doing 5 new things to be more environmentally friendly. The program is free, and new members get a “goodie” bag.

- Lynne Cantrell, Associate Broker

New Home Prices reflect Sold Properties in 2004 & 2005

I've researched the luxury home market looking for single family properties that are very well priced. My criteria were homes built in 2007 or later, which are priced at $1000 a square foot or less. This price per square foot reflects an asking price that was the norm in 2004 and 2005. I found five brand-new homes in the group. Two in the West Aspen area off of Cemetery Lane, two in Meadowwood and one in the Maroon Creek Club. If one of these properties works for you these asking prices reflect very good value.

- Dale Potvin, Managing Broker

Base Village is Looking Good!

Congratulations to the designers who laid out the Base Village in Snowmass. The entire base area flows well, and feels inviting. New restaurants, ski schools and shops are already crowded. Parking is easy. Though the development has slowed recently due to economic conditions, it appears that it will flourish in the long-term due to a superior design.

- Matt Holstein, Associate Broker

Will Snow Settle Economic Jitters?

Will abundant snowfall overcome economic jitters in bringing guests to Aspen this Winter?

- Dan Dunnigan, Associate Broker

Listing prices are coming down. When I list, how should my property be priced?

Pricing is very important, but positioning your property among the competition is just as important. “Lead the market, don’t follow the market” is always good advice. Your Realtor should look at all the similar properties that are for sale and analyze the features that either give your property a better, or worse, value. Price your property to be positioned competitively and to reflect the features that make it unique. If you are very motivated to sell, make sure that you’re the best value of the group, and if not, be in the middle of the low range section of the group.

- Dale Potvin, Managing Broker

The Best Deal I've Seen in a Long Time

There's a "Screaming Deal" on Riverside Dr. At 4100 sq ft, it's only a $1000 a foot for a 4BR/4BA home in great condition with Aspen Mt views and high-end finishes. If you're looking for a deal, this is definitely a great one!

- Dale Potvin, Managing Broker

Holiday Rentals Still in Demand Despite The Economy

Seems like people still want to come here over the Holidays despite the economy. St. Regis is sold out over Christmas/New Years week. Hyatt owners of that coveted 2 week period appear willing, but not desperate, to rent.

- Matt Holstein, Associate Broker

Is Now The Best Time...?

I may be biased but Aspen, the Gem, is still the best place on Earth. Are we seeing the best time to purchase in Aspen and the RF Valley in the last 5 years? Is now the best time to make an offer on an investment property or a residence a buyer has been dreaming about?

- Tommy Kearsey, Associate Broker

The 3rd "Screaming Deal" in RVR

#3 112 Pioneer Ct. $849,000

1 - This lot is great! Nothing but unobstructed views of Sopris, the 8th green and the crystal river from your bedroom deck

2 - Great finishes, awesome outdoor space with a great deck outside the living room and another covered deck off of the upstairs master bedroom. The basement is unfinished, which, if finished, could really add to the value of this home.

- Tom Kilby, Associate Broker

Another "Screaming Deal in RVR"

#2 78 Ferguson- $735,000

1 - Originally on the market for $785,000, this home is on one of the best lots in Oldtown. It’s a 6,063 sq. ft. lot at the end of a great family street, so the lot has a very open feel and direct views of Sopris.

2 - With 3,265 sq. ft., 4 bedrooms & a finished below grade space that could easily become a 5th bedroom, there is a lot of house here. And at $225, per square foot, there are only 9 other homes that have a lower price per sq. ft.
- Tom Kilby, Associate Broker

“Screaming Deals” for under $1 million in River Valley Ranch!

#1 614 North Bridge Drive- $899,000
In my opinion, this one of the best deals in the ENTIRE valley for under $1 million. Here’s why:

1. Price per Square Foot. Originally on the market for $1,275,000, it’s 3,953 sq. ft., including 5 bedrooms- (ground floor master, 2 above and 2 below grade), making it $225 per square foot. Only 10 homes have a lower price per square foot in Carbondale!

2. Finishes. This builder’s home is only 2 years old and has incredible high-end finishes: walnut floors, marble countertops, contemporary bath fixtures etc.

3. Upside Value. In my opinion, a home of this size and quality will hold its value. Homes of this size and quality are selling for over $1Million

- Tom Kilby, Associate Broker