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

December 2007

Aspen Real Estate Market Update

2007 Year End Market Summary

The average price per sale in Aspen and Snowmass this year is up 16% per transaction with the average Aspen home sale up 19% and the average Aspen lot sale up 29%. In 2007 total Aspen and Snowmass sales have shrunk by 10% compared to 2006 (dollar volume of sales of homes, townchomes, condos, and lots). Fourth quarter 2007 total sales vs. fourth quarter 2006 total sales are down 46%.

Four properties have sold over $20,000,000 this year in Aspen and Coates, Reid and Waldron has been the Listing and/or Selling Broker in all but one of these sales. One home sale was for $36,500,000 and a $37,000,000 home is under contract.

Due to the repercussions of Wall Streets’ mishandling of the collateralized debt markets, Buyers and Sellers greatly slowed their rate of entering into new transactions from August on, and the results have now shown up in the low volume of fourth quarter sales. Although closing numbers are down the average sale prices are still climbing as Sellers are not willing to take lower prices.

Buyers often assume that due to slow sales Sellers will lower their prices. This has, and will happen to listing prices but has not happened to sales prices in the 31 years I have been involved in the market. (Please refer to the graphs of sales in the 80’s, 90’s, and this decade in our July Market Report at: www.AspenValues.com/market-update.html.Where there appear to be price declines in the 80s and 90s the average decreased only due to high volumes of less expensive properties selling.)

The typical Seller in Aspen owns their property with little or no debt, loves Aspen and their property, will be purchasing a smaller or larger property and is very comfortable keeping their current property until they get a satisfactory price. We are seeing inventory shrinkage in some categories as Sellers are electing to take their property off the market until Buyers come near their asking prices, as they always have.

From a 30 year Broker’s perspective this market is similar to our market after the first Iraq War, and after 9/11. Activity slowed significantly, and if it follows the same script there will be fewer transactions for about six months, then volume will accelerate as if nothing ever happened.

Buyers now have a good variety to choose from in a more stable pricing environment than we have had in the last four years. This “slower market” has always proven to be a buying opportunity in Aspen. Should you want to buy or sell, like a free valuation of your property, want to discuss the market or have any questions at all please call me at 970-379-1500.

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