We Have Seen a Couple Sales in the High-end Sales. What Does That Mean for the Market?

A difficult economy does not change the fact that Aspen is one of the most desirable places to be. Always has been and always will be.

- Matt Holstein, Associate Broker

What's Happening with the Value of Luxury Homes in Aspen?

Sellers are holding strong. There are much fewer sales, but sales prices have not dropped significantly.

- Matt Holstein, Associate Broker

Luxury homes used to be relegated to specific neighborhoods, like Red Mountain, 1010 Ute, Starwood, Wildcat, etc. In the last couple of years, they have started popping up in many other areas, some as part of a larger development of a new area, like Highlands and Tiehack, but many as isolated outposts in formerly unassuming neighborhoods. Some recent example include Eastwood, Lower River Road, and Smuggler. These additions are clearly pushing the values of the surrounding homes up.

- Tom Leddy, Associate Broker

Are Foreclosure Properties Available in Aspen?

It is worth following up on what is happening in the area. There are a number of properties that are in foreclosure in the Roaring Fork Valley and these owners are very motivated to make deals before the sale date by the public trustee. I have seen few properties go all the way to the public sale but I have seen Sellers (with the cooperation of their Lenders) work out a way to their sell properties. Selling prices are often very good.

- Dale Potvin, Broker/Owner

Food, Wine and Real Estate - How should you spend your money in Aspen this summer?

After drinking some fine wine and enjoying the local fare at one of Aspen’s better restaurants, coming home to our own Aspen digs is part of the “lifestyle” that makes this the place to live. When you own in Aspen your suitcase stays in the closet and your toothbrush never has to leave town. In today’s world every business and every trade is trying to improve the experience, the service and the value. This is also true of most Sellers of Aspen real estate. The savvy property owners should be offering extra ordinary value in their pricing and the service you receive should create a smooth enjoyable experience giving you more time for fine food and wine and the great outdoors.

- Dale Potvin, Owner Broker

Why spend your money on food and wine, a temporary indulgence, when Aspen real estate, a lifelong indulgence, is on sale for the first time ever?

- Matt Holstein, Associate Broker

"The Trilogy" -- food and wine lovers, bike enthusiasts, music junkies. What other small town offers 3 in 1 on the same weekend -- there's no place like Aspen! Not to mention the spectators watching this upcoming circus weekend.

- Lynne Cantrell, Associate Broker

Summer buyers are arriving. Want to sell your property?

By now, if you are a Seller you should have gotten the message. If you are over priced you are not going to have any results. Take time right now as the summer selling season arrives to analyze your “true” market value in today’s market. Trying to sell real estate in denial of current economic conditions just won’t work. The “low flying angels” that will over pay have all been reading the national news. Get real and get results!

- Dale Potvin, Owner/Broker

Buyers are arriving, but they are price conscious. If you want to sell this summer, you have to price your property aggressively, and market that aspect of it. Show them why it is a good deal and why they should buy now. Interest rates are only going to go up from here as the Fed battles inflation; the economy is showing signs of recovery, etc.

- Matt Holstein, Associate Broker

Rising property taxes…substantial affect on the Real Estate Market?

I don’t see the tax increase affecting the market too much. Our property taxes are still low compared to most markets, and with values flat for the time being, buyers can expect taxes to stay flat for at least a couple of years after purchasing.

- Matt Holstein, Associate Broker

What's Your Off-Season Strategy? Buy, Sell or Hold?

Buy, Buy, Buy! Sellers are negotiating big time!

- Matt Holstein, Associate Broker

What is the Best Off-Season Real Estate Strategy for Buyers/Sellers?

Buyers should be looking. Cheap money and impending inflation means you want to be in Real Estate. Sellers should be either patient if they are capable or aggressive with their pricing if they actually want to sell. It is still a buyer’s market.

- Matt Holstein, Associate Broker

A noticeably busier month in Real Estate. Why now?

Positive national financial news, usual March surge.

- Matt Holstein, Associate Broker

Are Today's Stock Market Woes Advancing Real Estate Opportunities in the Roaring Fork Valley?

The recent stock market woes are beginning to show silver lining when it comes to Aspen/Roaring Fork Valley real estate. Many individuals are feeling desperation to somehow make back some of their Wall Street investment losses, but buying stocks in this environment isn't the way to do it. The bottom is nowhere in sight right now, and this is no time to continue to throw money into companies with intangible values that could continue to have underlying problems with issues related to debt, pensions, demand for durable goods, etc.

On the other hand, while nationwide real estate values at first glance might also seem unstable, the characteristics of Aspen/Roaring Fork Valley Real Estate are different. Despite difficult times, the fact that we continue to show on average between 80-90 % rental occupancy rates tells me individuals continue to place a high value on family enjoyment, recreation amenities, a healthy active lifestyle, and our unique outdoor setting. These are tangibles that will never evaporate.

Aspen/Roaring Fork Real Estate values have certainly declined between 20% - 30% off of the highs. While they could continue to decline further, purchasing a property that has a good location, solid amenities and high quality at these discounted rates is a much safer play than investing in the uncertainty of the stock market. Even if the decline in values continues, a good property will be the first to retain its value and likely increase in value once a recovery begins. It appears that it may be a while before the volatile shifts in stock values will end.

Tom Kilby, Associate Broker

Should Investors Look at our Market Now?

Investors should definitely be looking. The market WILL rebound, and it is impossible to "time" the absolute bottom. It takes time to find the right property, and it is definitely a buyer's market, so they should be searching now.

- Matt Holstein, Associate Broker

Now is the time for investors to find the motivated sellers. A good broker can help find these properties and owners. A smart investor should make offers. If you can buy a good location with well designed property at the below reduced asking prices, chances are very good you will see a return on your investment. It’s not so important to hit the bottom of the bottom of the selling price curve as today’s average selling prices are well below historic levels. Real estate is a long term investment but you make your money when you buy. Buying low is happening now.

- Dale Potvin, Owner/Broker

The fundamentals of investing are to buy low and sell high. So while the market could certainly continue to go down more, we know that prices are definitely low now. Which means that buying a "good" property now, is a good investment. Either way, if it's a "good" property and if it reflects the current market pricing, when the economy recovers, it will yield high returns. What is a "good" property? Investors should go back to the basics of real estate - location, amenities & quality. It's better to lead the market than follow. The savvy investor will look at this market now.

- Tom Kilby, Associate Broker

Aspen - A Top Down Economy

Aspen is a “top-down” economy. When the high earners are in the money, our market sees a positive effect. That being said, there are businesses that have weathered the initial storm of the last 6 months downturn and continue to make profits. Some of these owners and executives may be hoarding cash, but if they feel that the recovery has started and they’ve always wanted a property in Aspen/Snowmass, now may be their time. It will probably take sometime to see if the recovery plan is really working, but if it does, more Buyers will enter our upper-end market.

- Dale Potvin, Owner/Broker

Aspen Is Still Priceless...

How can you not love Aspen? It’s a survivor.

From its tough roots as the nation’s richest silver producer in 1891, to its economic collapse in 1893, when silver was devalued, Aspen emerged as a world-class ski destination in the 1950’s. The vision of the town’s founders was to transform Aspen into a cultural Utopia. To this day, Aspen remains an elite cultural and sport center, attracting great minds, humanitarians and outdoor enthusiasts. Throughout the years, Aspen has weathered other periods of sluggish real estate activity, notably the early 1980’s. I recall the skeptics saying back then that real estate prices couldn’t get any higher! You can’t put a price on Aspen’s “soul”, its sense of community or enduring small town charm.

Lynne Cantrell, Associate Broker

We love Aspen, but at what price?

In this market, it is all about the real price, not the listing price. The real price is somewhere between what Buyers are willing to offer and what Sellers would consider as close to what they would be willing to part with. Sellers are uneasy about what the real value of their properties are, so instead of dropping their price, most are inclined to leave the price alone and let the buyer establish a value. These conditions make the Broker critical to a successful transaction. If we can draw out what a buyer is willing to pay on an initial offer, our sellers are more likely to become more realistic about what they will take. They don’t all come together, but with real offers on the table, like dominoes, if we push over a couple of initial deals, values become more clear and the market will begin to move again. As a buyer, you should name your price and see what part of Aspen will fall in love with you!

-Tom Kilby, Associate Broker

Historically the busiest months, what will February & March bring in '09?

Traditionally February and March are very busy selling months for Aspen and Snowmass Real Estate. This is the time when the most number of wealthy cliental are in town with their families and there are a number of conferences that bring CEOs and their top staff together for meetings in town. Beware of the “Aspen Glow” as it can get you in the mood to buy Real Estate. Will “daddy big bucks” look at Real Estate and make the decision that this is the best time to buy – that it’s the best it’s been in the last 5 years? Inventory is up, Buyers are motivated and each personal business is still working.

…Or will the results of the 8 week period be just the opposite as these wealthy individuals feel that the Aspen Real Estate market has not yet bottomed out, or that they’re as broke as most and have not received any bail out money so if they saw the right deal they couldn’t pull the trigger regardless.

My crystal ball says that there will be modest sales activity because if you find the perfect match in Aspen you should buy it. It’s hard to find the perfect property and you don’t want to pass up it up if you have the money. I do think, however, that more sellers need to reduce prices to get the market going.

- Dale Potvin, Owner/Broker

In This Market, What is a "Low-ball" Offer?

When you make your initial offer on a property I think the goal is to take the Seller’s “temperature”. Are the Seller’s goals realistic in today’s market? If the property is over priced, 20% to 30% off of the list price is the right low ball offer. If the property has been priced to reflect the real market conditions, 15% to 20% off list price is the right “low ball” offer.

If you don’t get a response from the Seller everyone has wasted their time. That sometimes happens if the “low-ball” is to low. Your Broker should be able to guide you by getting information about the Seller’s motivation and property values in today’s market.

- Dale Potvin, Owner/Broker

Recent Sales - A Result of Long Standing Contracts

Of the few larger sales ($3,000,000+) we have seen in the last couple of months, many have contract dates from long ago, ie 1+ years. Expensive properties that have sold AND that have actually gone under contract in the last 6 months are very rare.

Matt Holstein, Associate Broker

Inauguaration lifts my spirits and hope for a new era for our country.

If you are like me, all the negative business news we have heard and been part of for the last few months can create a sense of confusion and test your positive outlook on life. I have always felt I could control my destiny, but melt downs like we have seen in the banking and the investment world lately have caused me to wonder if the United States is spinning out of control. For me, the event of Barrack Obama’s inauguration as the President of the United States brings a refreshing wave of new energy and optimism into every American life. It should remind us of how lucky we are to live in this free country. It is my hope that it is now our time to be part of a thoughtful, intelligent and inspiring approach to governance which will start to lead us in a new direction. The old world of greed in business and lack of respect for our environment is a time passed. Now we must roll up our sleeves and get back to work to produce real value for our rewards, find real approaches to sustainable living and develope real relationships with the world of nations we are a part of.

-Dale Potvin, Owner/Broker

Value in Decreased Construction Costs

The value right now is in decreased construction costs. Labor and materials are both down in price, so if you have been looking for a time to do a remodel, and have the money, this is a good time to do it.

- Matt Holstein, Associate Broker

Adding Some Vision Can Make a Deal Scream!

Cathers Vision Original Home

Many homes on the market in Aspen are older structures that have a distinctive late 60’s and 70’s feel. Some buyers can’t look past yesterday’s layout to find the true value for a deal. As a seller of a property like this, it might be worthwhile to engage a builder or interior designer to help create a new vision. This can be really effective and add accents to the bones of an older home. What might have been considered a scraper actually could turn out to be a screaming deal!For example, on one of our Red Mountain listings we added a new vision with the help of Mark Dougherty of Cathers Home Builders in Basalt (the construction division of Cathers Home interiors). The home, located on 41 Salvation Circle was built in 1972. At fist glance, many would argue that it has “that 70’s feel.” Mark was able to see thru this, make a few changes on a sketch and now you can see the home as the ideal canvas for a modern contemporary home. Mark's redesign of the interior layout highlights some of the older features, such as the massive beams in the living room, opened up the kitchen by eliminating a small office that presently is above it and added an ultra modern staircase.This 6,300 square ft home is listed for $8,450,000 or $1,341 per sq ft. There are ten (10) homes on Red Mountain 6300 square foot or larger. Excluding this property, the other nine (9) homes this size or larger are priced between $13.5 and $28 Million.Of the six (6) red mountain lots on the market, only one lot is listed under the price of this home ($6,995,000) and the other five are priced between $8.6 and $10 Million.Of course, fulfilling Mark Dougherty’s vision will require some investment in remodeling and construction cost, but the finished product gives you a spacious modern, mountain, contemporary home that feels new. As a seller, if you can get someone like Mark with a vision for your property, it may help prospective buyers see the value in your home better.

- Tom Kilby, Associate Broker

The Sales Tax Revenue Barometer

Sales tax revenues are a good barometer in gauging the strength of local economies. Aspen’s latest reported sales tax figures for November 2008 reflect the continuing economic downturn, slipping 5.5% overall. Tourist accommodations, sports equipment and clothing stores took the biggest hit – all off by approximately 20% compared to the same period in 2007. It is interesting to note that luxury items, namely furs, jewelry and galleries were up 49%, 58% and 38% respectively from November 2007 sales tax reports.

-Lynne Cantrell, Associate Broker

When Real Estate Gets Creative…

I just heard about an owner that has a newly completed 5,000 sq ft luxury home that he wants to share ownership of…And he’s offering a buyout in 5 yrs at a preferred return. He put in over 14 million but he’s willing to value it at less, given the current market. Interesting outcome of today’s market…

- Dale Potvin, Associate Broker

If it snows, they will come, but will they buy?

Holiday lift numbers were only down between 8% - 9%, most likely a pleasant surprise for Aspen Skiing Company - which like all Aspen businesses was holding its breath to see that would really happen. The town was “on sale” as all retail outlets promoted good deals. I checked with many of my broker friends from other offices to determine if holiday shopping included any real estate activity and confirmed few showings and fewer contracts. This period is traditionally not the busiest for real estate as Christmas, Hanukkah, short day light hours and visiting family members leave little time to squeeze in real estate showings. Early January continues to see new snow almost every day so skiers should be making last minute decisions to come to Aspen. The smart real estate investors in the group will take this timely opportunity to make offers on quality properties. Remember the old saying “Buy Low, Sell High”. Now may be the time to accomplish the first part of a good investment.

- Dale Potvin, Managing Broker

What Does 2009 Mean For Real Estate...?

It means, building inventories, more realistic Sellers, and Buyers with different motivations.

A group of Buyers looking for a very particular type of property will return to the Aspen market. They will enjoy a large selection of options and make deals at 10% to 15% below the high level in 06/07. Another group of Buyers will be thinking that the prices will drop 30% to 40% as they have seen with other equity investments. There may be a few opportunities for this group in the very high-end market due to a large inventory of unsold houses that where built on speculation and/or due to financial problems not associated with Aspen...Bottom line, real pricing will make 2009 a good time to buy.

- Dale Potvin, Managing Broker

The Greening of Aspen, Part IV

In addition to the efforts by the City of Aspen, the non-profit organization CORE (Community Office for Resource Efficiency – www.aspencore.org) offers grants and other financial help to those wishing to add renewable energy features to their home. CORE supports environmental initiatives in the Valley such as reducing the use of plastic bags. CORE also oversees REMP (renewable energy mitigation program). REMP requires homebuilders who want to install a high energy using feature such as a hot tub or heated driveway to either offset the extra energy use with the addition of renewable energy at their home or to pay into the REMP fund. These funds are then used to support renewable energy projects in Aspen and the rest of the Roaring Fork Valley.

- Lynne Cantrell, Associate Broker