Breckenridge Real Estate Blog

Breckenridge Real Estate Investment VS Denver Real Estate Investments

With a depressed market in Denver, more investors are looking to buy property in Summit County. Out of 284 metro markets nationally, Denver is ranked 210 in terms of year-over-year appreciation according to local real estate brokers. However, Denver’s market is showing signs of becoming healthier.

Meanwhile, most real estate markets nationwide continue to slow, though most did not enter negative territory in the first quarter. Nationwide, prices increased 0.5 percent compared with the fourth quarter, and 4.3 percent from the first quarter of 2006, according to the Office of Federal Housing Enterprise Oversight.

In the Vail Colorado, real estate appreciated at 20 percent or more a year and now is appreciating at an average rate of 5 percent. Overall, Summit County experienced an average of 15 percent appreciation in 2006 — that’s 11 percent ahead of 2005 dollar volume with 2 percent fewer transactions, according the Real Estate Technology Group, Inc.

High Country resort regions live in a protective bubble, so the Front Range market doesn’t reflect the mountain market. Summit County can be described as an island surrounded by a national forest and ocean — Summit County, as well as Vail Village, has reached build-out. Both offer world-class skiing, golf and other recreation. Both are close to airports, have hospitals and are vacation destinations for Baby Boomers.

Summit County, in particular, jumps out as a good value, compared to other renowned ski resorts nationwide. For example, a single family home in Summit is hundreds of thousands of dollars less than in Vail.

Second, Summit County is at build out. It is highly unlikely that ranches north of Silverthorne will convert to small lots because of the red tape involved in subdividing into anything smaller than 20 acres. Most lots cost $300,000 or more. What made Summit County valuable before has become more profound now. By adding that the skiing and other recreation opportunities — not to mention the new hospital — make Summit County the ultimate place to live, according to Jeffery McClintock a leading Summit County Real Estate Broker for several years.

The building is strong in fact it doesn’t seem to be affecting the rate of new developments, or their sales now. Crystal Peak Lodge on Peak 7 in Breckenridge has sold all but one of its 46 ski-in, ski-out condos since they went on the market in December. Prices range from $800,000 to $2 million.

In Vail, 72 condos at Solaris sold out within eight months, all priced between $8 million and $12 million. At the base of the VistaBahn, nine of 13 townhomes in Vail Resorts’ new “Front Door” project sold in one day — for $9.6 million to $16 million each. The remainder sold in three weeks, according to a source close to the project.

Meanwhile, builders are scrambling for employees. Many builders are so busy that they’re scheduling jobs months out, as condos and multiplexes are keeping them occupied. Several lots that once sat vacant for the 10 or 12 years under the same owner are now being built on.

“We’re having a lot of trouble getting people to keep up with the work load,” said David Koons, president of Summit Builders’ Association. “Our tradesman resource is definitely stretched. Every summer, it’s stretched, but this summer, it’s even more so.” Meanwhile, bedroom communities pop. Anyone who’s picked up a local newspaper knows that affordable housing is a misnomer in the mountains. As a result, “bedroom communities,” or those that house workers who commute to their jobs at or near the resorts, have begun to boom.

Just over Hoosier Pass (Elevation11541ft above sea level) and 15 minutes south on Highway 9 from Breckenridge is the town of, Alma and Fairplay which tend to be the choices for locals working in Breckenridge or Frisco. Some Copper Mountain employees commute from as far away as Leadville.

In the Vail Valley, Avon used to be the refuge, but now that it has skyrocketed in value, many people are selling, for example, their three bedroom condos for $600,000 and using the money to buy a new four-bedroom home in Eagle Ranch for $685,000.Though it’s 25 miles down valley and basically a lateral move price wise, the reason is people want more house for the money.