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Past Reports: View This Market Update as PDF - July 2007 - September 2006 - March 2006 - December 2003 - April 2003 - December 2002 - August 2001
Aspen Appraisels "Year in Review" 2007 - 2006 - 2005
Recent News: Aspen Daily News Artice 1-18-08
Summer 2009 - Aspen Real Estate Market Update
Recessions Represent Great Buying Opportunities
If historical trends are any indication, the average increase in price in the six years following the on-set of the last three recessions has been 46%. The following graphs plot the sale prices for the 6 years following the on-set of the recessions that began in 1981, 1990 and 2001. The fourth graph represents the average appreciation that occurred each year of the three previous recessions applied to the average Aspen homes sales prices at the end of 2008. The very clear message of the last 3 recessions, is that recessions are an excellent time to purchase real estate in Aspen.
Most Aspen owners have no debt on their Aspen property. The driving forces that will continue to support the Aspen real estate market are all becoming more powerful in an ever more crowded and frenzied world. Aspen’s exceptional recreational, cultural and intellectual amenities are all offered in a beautiful environment, in a small cozy community that cannot grow due to zoning. We enjoy increasing demand from a world demanding the attributes of Aspen.
*This information was obtained via the ABOR, Multiple Listings Service, Inc. This information is deemed reliable, but not guaranteed.
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The Aspen average home sale price increased in 2008 from $6.2 million to
$6.6 million. Market wide volume decreased by 50% from $2.6 billion to
$1.3 billion. Sales through April 2009 are half the dollar volume of 2008’s.
There is significant listing price erosion, led by distressed developers bailing out of good properties at $700-$1000/sf. Average sales price are “holding” but new expensive property sales have distorted the average and median prices. Values are dropping. It remains to be seen how deep the pool of distressed sellers is. This recession is more severe than any we have experienced.
Buyers:
The best pricing is on property with significant financing that is stressing the
owner. These are often new spec projects where the banks are being forced
to pressure the owners to dispose of the property or make loan reduction
payments much larger than comfortable. This is an unprecedented opportunity to buy some of Aspen’s best newly improved real estate at great
pricing. No new spec projects have started in the last year. This category will
sell out and disappear within the next year.
The second rare opportunity is the ability to obtain the prime properties
that are seldom available. Recessions cause a small portion of Aspen’s most
desirable homes and building sites to be available and often at great prices.
In the last three recessions, Aspen had experienced buyers that became
dismayed after these two categories sold out as the “deals were gone” and
they were looking at a significantly less attractive inventory made up of still
seemingly low prices, but of much lower quality. In all three recessions, this
transition was over before most Buyers and Sellers realized it was happening.
View more about the Market Update as PDF.
Residences at The Little Nell - $1,575,000 |
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