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